Posted on 05/02/2022 2:35:56 PM PDT by Browns Ultra Fan
Today we saw the 10-year Treasury Note yield break through the 3% barrier, then retreat as is there was a reflecting barrier at 3%.
And in Europe, we saw a flash crash allegedly caused by Citi’s trading desk.
The selloff was triggered by a large erroneous transaction made by the U.S. bank’s London trading desk, according to people with knowledge of the matter who asked not to be identified discussing private information. A knee-jerk selloff in OMX Stockholm 30 Index in five minutes wreaked havoc in bourses stretching from Paris to Warsaw toppling the main European index by as much as 3% and wiping out 300 billion euros ($315 billion) at one point.
The US Dollar rose again as expectations of Fed monetary tightening due to inflation become a reality.
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Is YET another Fed error in the making??
(Excerpt) Read more at confoundedinterest.net ...
That flash crash took out the stocks of the idiots who put in stop loss orders.
No.
It's your blog and nothing stops you from posting the whole thing.
“Biden made a HUGE error with his policies and the Fed is doubling down. “
What is the Fed doing wrong?
True, you have to use things like puts as effective stops so you can maintain your positions in thin or volatile markets and not get whipsawed out.
The Fed has to raise interest rates - we have inflation. The reality is interest rates have been kept too low for two long, and that goes back before Biden. He hasn’t helped anything though. And the reality is that our last four presidents have made it their mission to increase spending over their predecessor at an insane rate.
Zirp was causing wailing that retirees and savers could not earn money and now with rates going back up there is wailing that rates are high. Someone’s ox is always getting gored.
Gold is down hard.
I remember how pleased my grandparents were when they were getting 12 or 13% on their CDs.
Interest rates have been too low for a decade and it has resulted in insane real estate prices and people willing to take far too much risk on investments.
13% park and forget risk free seems like centuries ago.
Creating money out of thin air, then lending it out at with interest?
Not quite centuries, forty some years is a long time though.
At the same time my grandma was smiling about her CDs, my older brother was buying his first house.
That’s the other side of the coin.
Creating money out of thin air, then lending it out at with interest?
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Dishonest weights and balances. The Good Book has something to say about that. “ It’s coming…..”
So your brother was catching the early wave of the Reagan RE boom.
That’s right.
He’s done well in rental real estate over the years. He’s never sold a house, or anything else as far as I know, that he ever bought.
He’s known in our little hometown as the man you see if you want to rent a middle income single family house.
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