Fed reserve has 1000 phd’s and not an ounce of common sense….

[-lowcountrydawg]

Destroying trillions in wealth and another 25 bps will likely crush another half dozen community banks. First time home buyers locked out of the market and limiting supply, actually contributing to housing inflation. All in an effort to bring the price of milk down a quarter.

Does anyone think the difference in 5 percent debt versus 7 percent debt impacts demand for service workers? All they are doing is impairing the asset values (homes, 401ks, etc) for 150 million Americans.

Private sector leaders who have proven their business and financial acumen? They are all imploring the fed to stop and the market has priced in cuts due to the inevitable recession these idiots are driving us towards.

No - lifelong academics literally are the most powerful folks in the world right now.

 

[Dawg 'n IT]

Destroying trillions in wealth and another 25 bps will likely crush another half dozen community banks. First time home buyers locked out of the market and limiting supply, actually contributing to housing inflation. All in an effort to bring the price of milk down a quarter.

Does anyone think the difference in 5 percent debt versus 7 percent debt impacts demand for service workers? All they are doing is impairing the asset values (homes, 401ks, etc) for 150 million Americans.

Private sector leaders who have proven their business and financial acumen? They are all imploring the fed to stop and the market has priced in cuts due to the inevitable recession these idiots are driving us towards.

No - lifelong academics literally are the most powerful folks in the world right now.

You say all of this as if these folks are dumb. Perhaps they are doing it on purpose.

Time for my catchphrase...

"Incompetence or corruption, neither is good"

 

[-lowcountrydawg]

You say all of this as if these folks are dumb. Perhaps they are doing it on purpose.

Time for my catchphrase...

"Incompetence or corruption, neither is good"

Not dumb but they operate in a groupthink vacuum.

Just over a year ago they predicted they would increase rates 75 bps each in 2022 and 2023. So banks faced with an influx of new deposits did what banks do - they bought super safe treasuries and made super safe mortgage loans to super credible borrowers.

Then the fed goes wild with an unprecedented 500 bps and creates runs on these banks. It is their fault.

Just like every other issue, I trust folks in the real world running businesses. Making investments. Hiring people. Every major CEO and CFO are screaming what everyone but the Fed seems to see. Inflation is coming down like a freaking rock. And when banks are afraid to lend it won’t be just thr banks going out of business. It will be mom and pop businesses that can no longer access liquidity. Not a matter of the interest rate. A matter of whether they can get a loan at any price.

Almost all of these Fed types have zero real world experience and operate on academic theory over life experience. The economy is different than it used to be. Yet our policy is reflective of old economy thinking.

 

[atlanta cock#]

You say all of this as if these folks are dumb. Perhaps they are doing it on purpose.

Time for my catchphrase...

"Incompetence or corruption, neither is good"

Janet Yellen is the worst I’ve ever seen. Whether it’s intentional or incompetence really doesn’t matter at this point. She should have been dismissed back when she was claiming that inflation would be transitory. It’s like she learned a new word and couldn’t wait to use it.

 

[WyoDawg307]

Not dumb but they operate in a groupthink vacuum.

Just over a year ago they predicted they would increase rates 75 bps each in 2022 and 2023. So banks faced with an influx of new deposits did what banks do - they bought super safe treasuries and made super safe mortgage loans to super credible borrowers.

Then the fed goes wild with an unprecedented 500 bps and creates runs on these banks. It is their fault.

Just like every other issue, I trust folks in the real world running businesses. Making investments. Hiring people. Every major CEO and CFO are screaming what everyone but the Fed seems to see. Inflation is coming down like a freaking rock. And when banks are afraid to lend it won’t be just thr banks going out of business. It will be mom and pop businesses that can no longer access liquidity. Not a matter of the interest rate. A matter of whether they can get a loan at any price.

Almost all of these Fed types have zero real world experience and operate on academic theory over life experience. The economy is different than it used to be. Yet our policy is reflective of old economy thinking.

It takes a helluva crash to deflate the “everything bubble”. Zero and near zero
interest rates for 15 years was the real problem that needs correcting. The massive distortions that are created with low or no cost money are truly the problem.

Higher interest rates are normal (at least until 2008). I remember the economy being just fine in the 80’s and 90’s when car loans and mortgages (and overall borrowing costs) were multiples of where they are today. It took a good idea to get funding for a loan and not some hair-brained green energy idea that never makes a profit without tax credits.

Plus higher rates are hurting the Eurozone and the Davos economic reset clatch. Yellen/Biden are working against the Fed/Dimon in an epic tug of war and this is coming to a head with the upcoming debt ceiling hike. Personally I am rooting for the Fed to win the battle.

 

[-lowcountrydawg]

It takes a helluva crash to deflate the “everything bubble”. Zero and near zero
interest rates for 15 years was the real problem that needs correcting. The massive distortions that are created with low or no cost money are truly the problem.

Higher interest rates are normal (at least until 2008). I remember the economy being just fine in the 80’s and 90’s when car loans and mortgages (and overall borrowing costs) were multiples of where they are today. It took a good idea to get funding for a loan and not some hair-brained green energy idea that never makes a profit without tax credits.

Plus higher rates are hurting the Eurozone and the Davos economic reset clatch. Yellen/Biden are working against the Fed/Dimon in an epic tug of war and this is coming to a head with the upcoming debt ceiling hike. Personally I am rooting for the Fed to win the battle.

“Rates have been at zero for 15 years”. Always hear that. Not true. The 10
Year was where it is now in 2018. The problem here is the speed at which they have run from the post Covid relief zero rate, which at the time made sense, to waiting too long to begin rate increases, to now being such inflation zealots that they have moved rates so freaking fast the market hasn’t had time to adjust. Should have begun QT and rate increases in 2021, but the DC bubble still saw Covid as a terrible problem. Waited way too long and now gone way too high too fast. Good people and companies with good management have gotten hammered due to this Fed, which has lost all credibility.

 

[WyoDawg307]

“Rates have been at zero for 15 years”. Always hear that. Not true. The 10
Year was where it is now in 2018. The problem here is the speed at which they have run from the post Covid relief zero rate, which at the time made sense, to waiting too long to begin rate increases, to now being such inflation zealots that they have moved rates so freaking fast the market hasn’t had time to adjust. Should have begun QT and rate increases in 2021, but the DC bubble still saw Covid as a terrible problem. Waited way too long and now gone way too high too fast. Good people and companies with good management have gotten hammered due to this Fed, which has lost all credibility.

Ok go with “artificially too low” for 15 years. And don’t forget the QE for the same time period helps the distortions. The financial markets, the economic system and investors are all addicted to artificially cheap rates.

The 10 year was there only briefly before the “taper tantrum” that happened in 2019, as a result of increasing rates in 2017-18. A mere speed bump in a 15 year cycle of near zero rate/QE policy.

And I don’t disagree they have raised rates faster than any time in history and yeah something will be break in the system. It always does when they raise rates. With all the extreme leverage and swaps in the system that will inevitably explode at some point due to the tightening.

The Fed is doing good things though it gets ZERO mention in the financial press. Nobody, and I mean nobody has mentioned doing away with LIBOR for issuing Eurodollars in Europe instead of the US and moving it to SOFR and the Chicago Merc. That will help the inflation fight, but ultimately won’t win it. Eventually the Fed will stop raising rates/start cutting and announce 3% inflation is acceptable.

Maybe because controlling the global supply of dollar credit is too esoteric or too hard to comprehend or maybe because it is countering the globalists/Euros/Davos (including the White House and Yellen) and thus the media won’t report on it.

 

[Dawg 'n IT]

Janet Yellen is the worst I’ve ever seen. Whether it’s intentional or incompetence really doesn’t matter at this point. She should have been dismissed back when she was claiming that inflation would be transitory. It’s like she learned a new word and couldn’t wait to use it.

Who has the power to dismiss her?

 

[WyoDawg307]

Who has the power to dismiss her?

And just like the disastrous pullout of Afghanistan wasn’t due to incompetence (it was done intentionally) Yellen’s policies and actions are also intentional, not accidental. As is every ridiculous policy out of the White House - intentionally designed to fail. These people are working against our country.

 

[blackpug6]

And just like the disastrous pullout of Afghanistan wasn’t due to incompetence (it was done intentionally) Yellen’s policies and actions are also intentional, not accidental. As is every ridiculous policy out of the White House - intentionally designed to fail. These people are working against our country.

imagine if they take root.!>?













pug

 

[Bells76]

Everything about this government is bad. Their decisions are so bad, I just have to assume it’s on purpose.

Dems live in a fantasy world of zero consequences. So sometimes I find myself thinking they are just THAT stupid. Biden is comatose at the wheel and the morons are just laying waste to everything in sight.

 

[MaitlandFloridaDawg]

Not dumb but they operate in a groupthink vacuum.

Just over a year ago they predicted they would increase rates 75 bps each in 2022 and 2023. So banks faced with an influx of new deposits did what banks do - they bought super safe treasuries and made super safe mortgage loans to super credible borrowers.

Then the fed goes wild with an unprecedented 500 bps and creates runs on these banks. It is their fault.

Just like every other issue, I trust folks in the real world running businesses. Making investments. Hiring people. Every major CEO and CFO are screaming what everyone but the Fed seems to see. Inflation is coming down like a freaking rock. And when banks are afraid to lend it won’t be just thr banks going out of business. It will be mom and pop businesses that can no longer access liquidity. Not a matter of the interest rate. A matter of whether they can get a loan at any price.

Almost all of these Fed types have zero real world experience and operate on academic theory over life experience. The economy is different than it used to be. Yet our policy is reflective of old economy thinking.

I was at a corporate event last week and one of the guest speakers was Art Laffer (Laffer Curve, Father of Reaganomics) and he was highly critical of the Fed’s approach. The 2% inflation target is somewhat arbitrary. We’ve gotten into this cycle where we expect 0% inflation but anemic growth. If the economy could grow at a 4% to 5% rate instead of this anemic post Clinton growth rate of 1% to 2% we could withstand 3% inflation. In reality the real inflation rate right now is probably already close to 2%, but it takes to time for the annualized rate to come down because we had a few months of close to 10% inflation. It makes no sense to tank the economy to shave a few basis points off of the inflation rate.

 

[washdog]

Destroying trillions in wealth and another 25 bps will likely crush another half dozen community banks. First time home buyers locked out of the market and limiting supply, actually contributing to housing inflation. All in an effort to bring the price of milk down a quarter.

Does anyone think the difference in 5 percent debt versus 7 percent debt impacts demand for service workers? All they are doing is impairing the asset values (homes, 401ks, etc) for 150 million Americans.

Private sector leaders who have proven their business and financial acumen? They are all imploring the fed to stop and the market has priced in cuts due to the inevitable recession these idiots are driving us towards.

No - lifelong academics literally are the most powerful folks in the world right now.

Amen : I think they want to reck the private sector so all these fools will hollar for thr Government to do something,

 

[-lowcountrydawg]

Bump. PacWest on the clock. The last 50 bps in the teeth of all this was criminal.