Loading ...The FED Blew It!
The economic numbers, with the exception of the BS ones manufactured by BLS, are all screaming that the economy has rolled over and is falling fast. They should have, based on what market interest rates were trading at, cut 50 basis points, yesterday.
Their stupidity is about to lead to a stock market crash, where they may have to have an emergency meeting, to cut in the next week or two. Either they are complete morons or wanted this crash that is about to take place? Gold and silver are also going down. Gold will reverse at some point, either just before the FED capitulates or just after. Silver could stay down until a cut finally happens.
Continued destruction of the middle class — all part of the program!
Everyone (except corporations and the 1/10th of 1%) must revert to zero……decades in the making.
I disagree vehemently with the overall diagnosis you present.
Lower rates would just kick the can AGAIN. [Pile on more debt] And postpone the revival.
They are political and I can’t blame That Crowd for their calculation … “let someone else deal with it.”
But there are zombie companies that should not exist (no earnings, fake prospects), there is an entire society built on inflated valuations (and costs), and Schumpeter knew better.
You NEED wildfires in nature to renew the Cycle.
And you NEED wildfires in the economy to put resources to better use.
The problem is by kicking the can OVER AND OVER, the cost of getting from here to there now risks political upheaval.
But the cost of kicking the can yet again points to CERTAIN POLITICAL UPHEAVAL of even greater magnitude.
May you live in interesting times, huh?
Cutting 50 basis pts from 5.50 isn’t kicking the can. I have stated many times over this year you need to follow market rates. Getting down to 3.5-4 or so, isn’t the same as going back to zero which was wrong.
Prohibit central banks from buying sovereign bonds COMPLETELY and FOREVER.*
Then lets see where your “market rates” find themselves to be.
* And allow if not insist that countries with CBs that do buy sovereign debt to be tariffed into oblivion.
Ridiculous assumptions and restrictions. I believe in free markets, but since they don’t exist, you have to deal with the ones, that do.
Not so absurd. When the Fed charter was first issued, they were only permitted to buy short term corporate paper, at a discount. AA step number one would be to return to that constraint. (The other provision addresses the reality that total global liquidity is not under any one nation’s control, but resembles a public good … a commons.)
Look from the bright side.
MRNA down over 20% today 😉
https://stockcharts.com/h-sc/ui?s=MRNA&p=D&b=7&g=0&id=p48400065069
THAT IS A BRIGHT SIDE…THANKS BUCK
But this is nothing new. The FED ALWAYS blows it, it is how committees operate. A committee rules by consensus and there is no way a committee can get out in from of a market. Heck, it is hard for a single person to do it.
GOLD IS NOT DOWN AT ALL BUT EVERYTHING ELSE IS !
CHARTOLOGY WISE SILVER HIT THE BOTTOM OF IT’S DOUBLE TOP AND WAS DUE TO BACK DOWN
I think this is a buy the dipper for G&S metal and stocks.
Agree. I have been cautioning that there might be one last pullback that I was looking for around the Friday jobs report. This could be the start of it and tomorrow we will see if I was correct or not about the pullback, not taking out last week’s lows and not lasting long.