Posted:
#1
The Fed at this point doesn't care about the rate, they understand we are living under a zombie economy condition. What they care about is that their member banks increase their reserves, that's what the new "rate hike" is all about, its not really a rate hike. What is is in reality is a version of stealth QE where the banks get paid money to lend at the make believe floor of 25 basis points and earn intraday doing that.
If the Fed was really serious about a legitimate rate hike they'd do it properly, which is drain the assets on their balance sheet and they would need to do a lot of draining for it to even move considering how much liquidity is in the market.
Basically what happened during the "announcement" is that Yellen said she was going to give the banks more money (12B if you believe the latest headline lol), framed it as a rate hike and the media bots bought into it hook line and sinker. And Yellen, running her fat mouth, set up a secular bear market for the foreseeable future in stocks.
The Fed is not doing a damn thing to help the economy, period and doesn't give a shit to. And if you sat them in a room and had a private conversation they would tell you straight up. That they believe its fiscal policy (US Gov) to step up to the plate and do something about it. What they won't tell you is who the Fed hopes the US Gov gets indebted to when they spend that money. Themselves.
The American people are on their own... buy shiny, barbaric, pet rocks and volatility if you haven't already. The next part of the ride will be MORE than a little bumpy.
If the Fed was really serious about a legitimate rate hike they'd do it properly, which is drain the assets on their balance sheet and they would need to do a lot of draining for it to even move considering how much liquidity is in the market.
Basically what happened during the "announcement" is that Yellen said she was going to give the banks more money (12B if you believe the latest headline lol), framed it as a rate hike and the media bots bought into it hook line and sinker. And Yellen, running her fat mouth, set up a secular bear market for the foreseeable future in stocks.
The Fed is not doing a damn thing to help the economy, period and doesn't give a shit to. And if you sat them in a room and had a private conversation they would tell you straight up. That they believe its fiscal policy (US Gov) to step up to the plate and do something about it. What they won't tell you is who the Fed hopes the US Gov gets indebted to when they spend that money. Themselves.
The American people are on their own... buy shiny, barbaric, pet rocks and volatility if you haven't already. The next part of the ride will be MORE than a little bumpy.
0
I agree. I'm on TVIX since about 6 bucks. I think this one is for real. I see a 20-40 percent drop.
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