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/biz/ - Business & Finance

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12602416 No.12602416 [Reply] [Original]

>Says economy is in good shape and rates have to be normalised.
>Raises rates.
>Stock market takes a 20% dump.
>Stops hiking.
>Still says ecnomic outlook is good and no signs of recession.

Why is the fed stopping rate hikes if, as they say, the economy is strong and they can't spot any bubbles?

>> No.12602761
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12602761

>>12602416
APOLOGIZE

>> No.12602861

they want the recession to get deeper and worse, so they're not letting air out of the bubble by raising rates, despite their policy targeting 1% interest to at least above inflation (2.1% +1% = 3.1%)

>> No.12602871
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12602871

>>12602416
APOLOGIZE

>> No.12602880
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12602880

>heather LONG from the washington post

>> No.12602901

Why do we even have centrally planned money creation? Seems retarded and communist

>> No.12602909
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12602909

>>12602416
Congratulations, anon. You have just identified the biggest scam in human history which 99% of the population cannot even comprehend on even the simplest level.
You now have two choices:
(1) Commit yourself to the destruction of this living nightmare
(2) Sell your soul, climb the ladder and squeeze every last drop of blood out of the willing slaves that have made this system through their apathy. After all, the Rules of Acquisition do not care about financial repression.
(3) Some combination of (1) and (2)

>> No.12602921

>>12602416
USDI and treasury bonds are tanking right now top kek. Meanwhile gold is taking off and it looks like the stock rally is slowing down. I wonder if this will be good for bitcone.

>> No.12602929

>>12602921
how is this going to be good for something that is good for nothing anon?

>> No.12602931

Sorry you shorted an American index like a dumbass

>> No.12602948

>keep rates low
>have nothing but balance sheet to combat recession
>lower rates
>inflate the bubble even more
Must be a stressful job, to have trillions of dollars worth of money hanging on literally every word you say

>> No.12602966

>>12602948
*keep rates the same
oh and i forgot
>raise rates
>destroy the economy

>> No.12602974

>>12602948
>>12602966
Did they say that they were going to expand the balance sheet again? Jesus Christ.

>> No.12603167

>>12602974
>"flexibility" in balance sheet normalization
He's also dodging all the balance sheet questions in this press conference
So... who the fuck knows. LOL

>> No.12603183

>>12602974
>>12603167
He keeps emphasizing the fund rate as the primary tool for market normalization. Keeps talking about a sizable "buffer" in the sheet.
Says discussions are "ongoing" and there are no specifics yet.
My guess is they have no idea what to do and are trying to keep the markets calm while they scramble to figure this all out in the next few meetings.

>> No.12603187

>>12602761
Crazy.

>> No.12603201

Wow OP, you are sooo smart. It’s almost like they are LYING.

>> No.12603251
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12603251

>>12602416
APOLOGIZE

>> No.12603272

>>12603167
>>12603183
LOL rip

>> No.12603534
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12603534

What do you mean, Mister President? We are not buying gold.

>> No.12603647

>>12602909
Extremely underrated post

>> No.12603725

>>12602761
Fpbp

>> No.12604069

>>12602416
He is a bad liar, because he is not a kike like the ones before him. Should've learned better from them. And he is most likely being used by them as a fall guy.
Btw look what those sleezy cunts say now.
https://www.marketwatch.com/story/the-feds-murder-weapon-is-hiding-in-plain-sight-2019-01-10

>> No.12604076
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12604076

>>12603534
Pretty soon the President isn't even going to have a wooden nickel to give.

>> No.12604124

>>12602416
U.S. markets are all smoke and mirrors. You have the Fed basically controlling when the markets rise and crash on a larger cycle level with interest rates. You have dark pools existing where if insiders and other large players should happen to want to execute their order in stealth and without directly impacting the price of a given asset they can. This has the effect of making it so at any given point there is the publicly known market price and the secret "big order" price you're not allowed to know about, but in an actual non-bullshit market that order would absolutely need to be executed in chunks and would impact the asset price. You have short sale restrictions which basically allow complete shit house companies to exist in perpetuity as every time they drop 10% shorting them becomes a pain in the ass meaning they're biased to the upside over the long run. You have a substantially large propaganda piece of academia and the media spewing non stop to plug all your money away in one of the pre-selected few giant mutual funds and that you should never touch that money ever, just buy-hold, and always buy more with the end result destroying market participant diversity. You have tax incentives to buy-and-hold. You get bail-outs on functionally naked option selling if you're a large financial institution. And the list goes on and on. U.S. markets are completely fucked beyond all hope from a structural standpoint and any time someone dares to utter anything about free-market capitalism and U.S. markets in the same sentence you should slap them across the face.

>> No.12604166

>>12603534
nostalgia just hit me so fucking hard

>> No.12604316

>>12602909
/thread

>> No.12604513

Try asking following question in Quora. Looks like Quora is refusing to add that !

Why did market regulators allow OTC darkpools to exist and execute “secret orders” which ideally should be processed via normal retail market in “chunks” actually impacting the asset or equity prices ?

>> No.12604549

>>12602416
The FED needs to unironically go into a multi-year communications blackout and start operating even more in the shadows. The hacks on CNBC and meme mongers like Schiff hang on every single word and twist reality into storms of hype that cast a cloud over the entire economy. These Fed Chief (and presidents) have turned into virtual celebrities.

>> No.12604582

>>12602901
ask nixon. he's the one who took us off the gold standard.

>> No.12604591

I'm starting to think Powell doesn't know what the hell he's doing. Markets were in a very precarious position in December, he hikes, markets crash. Markets bounced well after that in January, he doesn't hike and changes the wording of the forecast to a more dovish tone.

I know he's not supposed to work too closely off market activity but this is getting silly.