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If you trade, have a mortgage, you'll probably heard of the name Alan Greenspan, who's the ex chairman of the Federal Reserve of the US from 1987 - 2006. I used to remember how cautious people are towards what he says and how he says it, to the point where if he sneezes, the world would catch a cold.

Anyway, he's important, because he "controls" the interest rate. If you have a mortgage, and imagine it being a noose (close enough huh?) you'll know that the interest rate is almost directly proportional to how tight the noose felt around your neck. Which is why, you'll want to know when he next wants to toy around with it.

To the point where CNBC created a gimmick called the "briefcase indicator", in which cameras will follow Alan Greenspan into his morning fed meetings. If the briefcase is thin, it means the economy is going fine and there won't be a rate hike anytime soon, in contrary, if the suitcase is stuffed full, it means lotcha work has been done and a rate hike is looming. Facinating huh?

But in Alan Greenspan's own words, " .. for the records, the briefcase indicator was not accurate. The fatness of my briefcase was solely a function of whether I had packed my lunch."

So there you have it. The "briefcase indicator" explained.