Skip to comments.The Federal Reserve May Secretly Want to Sink the Record-Breaking Stock Market
Posted on 02/05/2018 7:33:21 PM PST by familyop
A big Federal Reserve meeting is coming up. Here is one thing that could happen if the Fed gets too aggressive.
Despite its independence, the Federal Reserve may quietly want a bear market that takes down a president that loves tweeting about the stock market.
Peter Schiff, CEO of Euro Pacific Capital, told TheStreet the "[Janet] Yellen put" in the markets could expire under President Trump. "I don't know if the Fed has much love for Trump," he said, adding that the Fed had the markets' back during the Obama Administration.
"Maybe the Fed would be happy to see a bear market that could be blamed on Trump." Schiff thinks the markets could easily correct 20%.
One black swan event Schiff sees is the notion of investors abandoning the euphoria over Trump's presidency, which helped fuel the stock market rally this year.
"We've had a huge move up since the election of Trump even though prior to the election the expectation was if Trump won it [would be a disaster for markets]," he said.
When asked if the two straight quarters of double-digit earnings growth has sparked the rally in stocks this year, as opposed to solely Trump, Schiff pointed to earnings headwinds in the retail sector.
The Federal Reserve is scheduled to meet later this week.
Watch the full interview with Peter Schiff:
And yes, it's public (stock). Follow the link for the video and more.
Yellen is out Stock Market goes BOOM , what was she doing
Deep State never gives up.
But we are going to WIN!
Or it could be that China is responding to Donald Trump, by deciding to reset their currency peg to the dollar.
They pull out of dollars. Reset their currency. They get back in at the new rate. Immediate profit.
In theory, anyway. :D
Move along. Nothing to see here folks.
I have been saying it since Friday: This crash is a planned attack designed to take attention away from the memo. The soon the good guys realize this the better.
The Fed kept interest rates near zero for all of Obama’s 8 years.
Then Trump gets elected and the Fed has raised around 5 times already.
Tell me the Fed doesn’t have a political agenda to crash the stock market, real estate market and the economy and Trump with them.
Trumps new Fed Reserve pick needs to come out on Tuesday and dismiss Janet Y bitter parting comments and calm nerves .
Where is this guy ?
That’s what I think, Civil War. “Coincidentally” drops the day the FISA memo is released? They are PO’d and won’t go quietly into the night. They’ll go, however.
Time to audit and get rid of the Federal Reserve.
The fed did the same thing to Pappy Bush. As soon as Clinton was sworn in the fed slashed interest rates.
Even before it happened and certainly last Friday I though, “it is about the mid-terms.”
Wouldn’t put it past any of them.
The fed is unloading bonds left and right at the same time raising interest rates. That’s a double whammy for the stock market, rising yields will move people towards bonds, and trust me the public cannot push yields down against the fed which hold something like 2 trillion worth of bonds.
DOW futures is now showing another $700 drop for tomorrow.
As the Fed pushes the funds rate up, treasury yields will go up. If they go up much more at all, it will kill bond prices. Then collapse—all of it in a vicious cycle (interest rates decreasing business activity, falling markets leading to increases in unemployment, decreases in revenues, start the cycle again and so forth).
Then, many more lefties will be out of their government jobs, cutting support from under the Democrats. And it’s not the 1930s. Even poor conservatives are fed up with political correctness. Political correctness must go, and it will, one way or another.
-826.00 points. That’s 826 points down as of less than a minute ago. It’s been fluctuating but fluctuating downward.
Also, NO market run up just goes on "forever"!
The Obama run up was mostly based on lies, omitted facts from the public, and yes, Yellen never talking about the inflation that WAS going on during Obama's terms; not to mention keeping interest unnaturally low.
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