Posted on 12/24/2018 8:06:20 AM PST by SeekAndFind
Ok, so what in the 21st century could lead a stock market to the worst December since the Great Depression year of 1931?
Let’s start by saying I have always liked Fed Chair Jay Powell’s pragmatic image. I only hope I wasn’t fooled.
He has the ideal experience mix of Washington finance and private sector, so he ought to be able to tell the forest from the trees.
But last week’s Fed meeting was even more disastrous than the one in September.
Since the September meeting — when the Fed hiked rates because the economy was displaying “strong labor market conditions and a sustained return to 2 percent inflation” — stocks have sold off.
Then came Wednesday’s meeting, when the Fed hiked again despite all being well in the economy.
With good growth, good employment and no inflation to speak of, this hike sent the market spinning into a state of disbelief. The market closed down 352 points, and Thursday subtracted 464 more.
This correction is now all on the Fed. It over-reached just like virtually every other academic Fed, combating Ghosts of Inflation Past that haven’t appeared in decades.
Powell needs to expand his Rolodex to include more than just policy types and start speaking with some real-world practitioners.
For example: FedEx CEO Fred Smith. If there’s anyone who would have a read on the pulse of the economy, he’d be it. FedEx’s stock is down 40 percent since September.
(Excerpt) Read more at nypost.com ...
Many consider the Fed to be the enemy of the People.
I would agree, it isn’t anyone’s friend.
there needed to be a trump beatdown somehow, and with mueller apparently stymied, the fed is the currently the path of least resistance to accomplishing it.
i would like to see a fed beatdown somehow.
Blame the Fed for creating a massive bubble in stocks, big-city property, and bonds - with interest rates surpassed to zero for many years, and bond monetization schemes.
President Trump should order a full audit of the FED at Noon.
When interest rates are higher, some investors put their money into interest-bearing accounts, rather than the stock market. DUH! (Fewer stocks bought, lower stock prices. DUH)
Merry Christmas and FU from a politically motivated fed!
This correction is now all on the Fed. It over-reached just like virtually every other academic Fed, combating Ghosts of Inflation Past that haven’t appeared in decades.
...
When everything they do is based on the false premise that economic growth causes inflation, there’s going to be problems, and Congress fails to hold them accountable.
Perhaps that’s because Congress likes the damage that the Fed does.
They have held the interest rates too low for too long in order to hide the true cost of their spending.
Correction is going to be very painful.
As always, DIVERSITY should be your plan when investing. Yeah, my stocks are down but my Bonds and Precious Metals are UP!
Never be lulled into complacency, no matter HOW good a job President Trump tries to do for We The People and our Economy. You can always, ALWAYS count on the Fed to p*ss in your Corn Flakes. ;)
b t t t
Yep, the Fed has a hand in this downward trend.
But...the Dhimmicraps stealing the midterms for the House was the real spark plug.
It’s all about destroying Trump, and they don’t give a damn if it takes down the economy or the whole nation.
I've bet that both the DOW and S&P drop another 10% in the next 6 months.
I agree. A financial “generation” have grown up thinking living on borrowed money is free. It ain’t!
Now I will also say the Fed moved too far in such a short period.
Trump appointed Powell. Why?
When is he going to start appointing people who support him?
Right you are. I’ve had nearly half my investments in bonds and a low interest (1.5%) savings account for the last 7 months.
This Congress does, and will
Anything to destroy Trump no matter who gets hurt
They protected odongo for 8 long years without an increase.
Now, they’re wanting to take down Trump.
They don’t care about the People or the country.
They are part of the UniParty.....Globalist/communist POSs.
Manuchun went out, and sabotaged PT today. He should be fired.
No blame on the Fed for juicing the market with years of QE and zero interest rate.
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