Posted on 03/15/2020 2:12:17 PM PDT by billyboy15
My only financial advice right now is that the market is acting like a hormonal teenager: Nothing will satisfy it, and it’s going range all over the place.
Wait until it starts acting like an adult again.
It is weird. Where is the inflation? One check on it may be the falling labor costs. This has been the case since the late 90s. But inflation will be back. It will roar into life when least expected.
Don’t look !
I've got a couple of theories; just theories. One, it's in the stock market, waiting to break loose. Two, it's being absorbed by the global economy, distributed around the world as opposed to being localized to the countries doing it.
Either way, I've a strong feeling that the piper will eventually be paid.
But at some point we need to break up the Monetary cartel.
Multiple countries are printing money to cover debts, because it's easier than raising taxes directly...
Democrats and Republicans in Congress have had their own domestic "cartel," -- log rolling subsidies to each others' special interests in deficit spending budgets - for decades. We log rolled right off the cliff - we are running out of runway.
I sense the credit markets are perilously over extended. 0% Fed interest rates? Those rates do U.S. savers no good.....
All this Let's play Nice-Nice talk I hear now on all the news channels, Fox News & Fox Business Channel included, kinda sickens me. Here comes another push for "QE" money printing, instead of actual reform.
WE HAVE HAD STRONG ECONOMIC GROWTH UNDER TRUMP. THAT'S GREAT, BUT GUESS WHAT: "TRADITIONAL" MACRO POLICY TELLS US THE FEDERAL GOVERNMENT WILL ACCUMULATE A FEDERAL SURPLUS DURING THE GOOD TIMES, TO BE USED TO "STIMULATE" THE ECONOMY DURING TIMES OF LOW OR DECREASED DEMAND. WHERE IS THAT SURPLUS? IT NEVER HAPPENED. DID IT. FOOL US TWICE, SHAME ON US.
Thanks for writing :)
+1, good post.
+1, good post.
“But at some point we need to break up the Monetary cartel.”
Don’t get me wrong; I would love to break that up - I’m more of a physical gold standard type myself - abolish the Fed.
I know it seems like President Trump is “kicking the can down the road” - I really don’t think so. I am sure he would love to replace the Fed with something accountable to We the People.
But we are so far from forming a consensus among economists on this subject. If anything, the consensus supports the status quo and the President has to work within this reality. That means interest rate parity with our trading partners.
If the other side fights dirty, we should either fight dirty or quit the game. Playing by the rules when the other side is cheating is just stupid.
“What if Trump’s goal is to destroy the Fed, which is UnConstitutional anyway?”
That would be fine with me, but how would this destroy the Fed?
It seems to me the Fed only gets richer when they get to charge interest on money that costs them nothing.
Quantitative easing is just a fancy name for printing money.
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Yep, it’s just the Fed creating money and handing it over to the Treasury Dept. to spend.
Maybe Andrew Jackson has come back ‘redistribute’ the Bank’s largesse of our money,our currency being “loaned”...to the correct entities that support MAGA? Could be.
Returning needed money to the States to put it to the best use- and not secretly floating billions to European and other foreign states, without so much as asking permission of the People who fund the place in the first place. More easily done by redirecting the federal dollars so backed to each state’s banks.
“The Bank, Mr. Van Buren, is trying to kill me. But I will kill it.”
[ And never ever try to catch a fallen wife. ]
That’s heavy, man.
https://www.youtube.com/watch?v=3cn-iPEEzfA
We need that boy out on the Carnival-Virus speaking tour!
lol
Get ready for another round of inflation.
A lot of money seeking a place to land.
Where will it try to land?
Real Estate? My real estate mutual funds have done well and didn’t drop as much in this crises. I have rental properties that are returning me about 6% to what I consider fair market value. But that 6% is a return to my labor, money and mgt decisions. What stops me from buying more rental property is the growth in regulations and I am getting older
Stock Market? The stock market has inflated it’s way to high prices, not earned it in my opinion
new small business? only if the regulations are reduced. This crises might be an opening for that with Trump in place
Spend it/consume it? This creates a lot of activity, but does not create wealth.
Any other thoughts?
I remember being in a conference in NYC and a banker predicting the markets would hit 18k. When queried based on what fundamentals was the prediction being made, he basically shrugged and said that’s the trajectory. There was no reason for the market to reach 18k, let alone 27k. But when the savings accounts pay next to nothing, it’s better to make something on it, so people went to stocks.
He is finding ways to turn this crisis into a “teaching moment”.
I think Trump will use this too take away a lot of regulation and give us freedom. But it will be a tough process and a test of us as to do we really want freedom.
The Biblical view would be in Revelation, where the churches are told to “go back to your first love.” Go back to the basics the things that are important.
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