You were screaming for a rate cut when the JPY carry trade imploded on August 5th. Now you're questioning it? It's obvious that they are going the way of hyperinflating now. If you haven't been buying gold and silver the last 4 years, you have a lot of catching up to do.
The Fed is creating an even larger Stock Market bubble, that can be popped with a significant Black Swan event. The Fed in conjunction with Congress's multi trillion dollar deficit budgets, are accelerating inflation and devaluing the Dollar. When the financial collapse happens, CBDC will come to the rescue. Just like mRNA infections “rescued” us from COVID.
“The housing market has been in a depressed state for a long time, and so this rate cut will definitely help”.
Wrong.
Mortgage rates immediately went up following the cut. Remember, the FED has no influence over LT rates. And the bond vigilantes have been on the sideline for nearly 4 years. And 6 months from now, as inflation is rising steeply again due to the ill advised cut (of any size) bond traders will be demanding higher and higher rates for LT bonds. Mortgages are based on the 10 year rate. And over the next year, it has no place to go but up. If you don’t think your future has 8 or 9% mortgage rates, you will be mistaken. Double digit rates are not out of the question.
Spot on since 80% of all trading on the stock markets are done by computers with algorithms to spot any possible event that could make the market rise, money will flow to it. One of the algorithms is interest rates. They know people vote their pocketbook and this was all about votes. 0.5% drop does nothing for anyone, they can't even go 1.0% in fear of putting more stress on the banks.
This also shows they are terrified Trump even now is in a position to win and this was done to try and stop that.
The Fed's 50 pt. rate cut is them just covering their butts (and the Biden regime's dismal economics). Much ado about nothing. The cut will have no meaningful effect on the economy or for struggling businesses. The "bounce" won't even last until the election. Too many events, happening too fast, the rate cut will be soon forgotten. Kick the fascists and commies out of government and abolish the Fed for a real recovery.
Thank you for your insight from a Biblical point of view. May God richly bless you.
I think the 50bps was in anticipation of what's going on in Japan… and the movement of other Central Banks.
The Yen is under pressure, as is the USD…
Enter BRICS, stage right…
We're in for a very bumpy ride…
Personally, I see hyper-inflation coming, as “$0R0$” crashes the Global Market…
You were screaming for a rate cut when the JPY carry trade imploded on August 5th. Now you're questioning it? It's obvious that they are going the way of hyperinflating now. If you haven't been buying gold and silver the last 4 years, you have a lot of catching up to do.
The Fed is creating an even larger Stock Market bubble, that can be popped with a significant Black Swan event. The Fed in conjunction with Congress's multi trillion dollar deficit budgets, are accelerating inflation and devaluing the Dollar. When the financial collapse happens, CBDC will come to the rescue. Just like mRNA infections “rescued” us from COVID.
Brilliant explanation ! Even I can understand it now. Thanks.
You can speculate all you want since none of these academic clowns knows what they are doing. It's all guesswork.
“The housing market has been in a depressed state for a long time, and so this rate cut will definitely help”.
Wrong.
Mortgage rates immediately went up following the cut. Remember, the FED has no influence over LT rates. And the bond vigilantes have been on the sideline for nearly 4 years. And 6 months from now, as inflation is rising steeply again due to the ill advised cut (of any size) bond traders will be demanding higher and higher rates for LT bonds. Mortgages are based on the 10 year rate. And over the next year, it has no place to go but up. If you don’t think your future has 8 or 9% mortgage rates, you will be mistaken. Double digit rates are not out of the question.
Have you been reading Mish, MP? You are of course very much over the target - crash ahead.
https://austrianpeter.substack.com/p/boe-cuts-rates-us-treasury-yields?r=hhrlz&utm_campaign=post&utm_medium=web&triedRedirect=true
Spot on since 80% of all trading on the stock markets are done by computers with algorithms to spot any possible event that could make the market rise, money will flow to it. One of the algorithms is interest rates. They know people vote their pocketbook and this was all about votes. 0.5% drop does nothing for anyone, they can't even go 1.0% in fear of putting more stress on the banks.
This also shows they are terrified Trump even now is in a position to win and this was done to try and stop that.
The Fed's 50 pt. rate cut is them just covering their butts (and the Biden regime's dismal economics). Much ado about nothing. The cut will have no meaningful effect on the economy or for struggling businesses. The "bounce" won't even last until the election. Too many events, happening too fast, the rate cut will be soon forgotten. Kick the fascists and commies out of government and abolish the Fed for a real recovery.