G-S(Glass Steagall Act) is a relic of the 1930's. You have G-S here, say goodbye to the U.S. banking system and you can have your credit cards and loans provided by Industrial Bank of China and her friends.
GS protected all parties by prohibiting banks from investing customer deposits. It's these investments alone that have caused bank failures/massive bailouts since repeal of GS. In the GS days you had a bank on one side of the street and a brokerage firm on the other side of the street. Back then brokerage firms had only investor funds to gamble with, not bank deposits. Back then banks had to do their due diligence when making loans.
So anyone who claims GS is a relic does not comprehend what's its repeal really meant.
@dcarr said:
But when sharks and idiots meet, you can bet the sharks are very eager to get in on it.
Anyway, this illustrates how big banks make a lot of money (at taxpayer's expense in this case).
Michael Bennett, current CO Senator, was one of those individuals and he had years/decades of financial experience.
These were NOT a bunch of school teachers with no experience trying to figure out complex solutions.
Always ask what is the worst case that can happen. Clearly, someone did not.
Michael Bennett, current CO Senator, was one of those individuals and he had years/decades of financial experience.
"Financial Experience" or not, he was/is the main idiot (at best, or co-conspirator at worst).
Anybody with any sense could have seen that things would be going bad. I have no real "financial experience" in complex derivatives. But all I had to do was turn on the television in 2007 and those commercials touting 125% equity home loans told me all that I needed to know.
". . . it is a sign the Fed has no need to raise interest rates further. Given the lag of one to two years between money supply changes and the impact on asset prices and inflation, it may even be a sign that the U.S. central bank should be cutting rates."
@GoldFinger1969 said: Getting back to the main point of this thread....right now we have a fascinating split: the market (Fed Funds Futures) is assuming about 125-150 bp. in cuts and a lower Fed Funds rate than the official pronouncements of the Fed by year-end.
Something has to give.........
The Fed will give and very soon too. Fund rate cuts are coming very soon, the economy has got TO GET BACK to reflecting the Dow and not the other way around.
Note the number of Auto Dealers that are NOW offering their own finance rates 0.00% to 4.99%
I know the answer. But I was asking you as you seem to be quite vocal in your rhetoric yet have no substance to your claim or argument. It just sounds like a typical uniformed rant. Like most in this society, we speak without understanding, claiming our opinions to be facts. This is the danger to our society, not CBDCs or interest rates. Focus your energies on trying to learn and understand. Or not, and continue to be frustrated by questions that are "too complicated".
BTW--Is Newsweek still in business? Haven't seen that name in 20 years.
5.6% inflation rate is not the target rate. I could see another .25 pt increase. Certainly, things can change before the next FED meeting but I don't think today's numbers alone cause a pause.
@derryb said:
one more rate increase then FED will throw out the baby with the bath water as it realizes rates gotta be near zero for their shill game to survive.
@Soldi - IMO it’s time to get out of the red hot US coin market. I fall into the camp that will buy PMs slowly and surely over time. I think silver is the better buy right now but not if you’re buying heavy premium stuff. That being said I am currently working on a couple of gold sets (spouses and commems). It’s a way to keep the set builder in me going while acquiring low premium gold.
If rates went to zero as derry surmised then there would be substantial capital gain. A 5yr bond with a 5% coupon could be trading near 120 if rates went to zero next year.
Get ready boys and girls ! here comes the last 25 basis point raise, before the pause and a rapid, I mean RAPID decline in interest rates.
My point all along is that the Fed is in a box. $300 billion "loaned" to banks in one week last month (March) That's QE YES IT IS. only by a different "title"
Metals seem to be holding their ground against a Fed that can pull a rabbit out of it's hat at any time. We all pay for it.
All of the above are FACTS and not Rhetoric ( so do your own studying) Then of course I don't shoot a Kel-Tec or use $59 optics, but I still believe in cold hard cash is king. Rare coins and gold, silver and gold. I do it for the money!
SHTF stories are full of fiction! The dollar losing it's value is World Wide nonsense. You don't want to live in a world where the greenback is not the reserve currency. Believe it; the World doesn't want any other currency to carry the day.
China has two currencies. Why? research first type later.
Gaaddafi wanted a "gold dinar" he's DEAD
Saddam Hussein traded oil outside the dollar; he's DEAD
So how does all of the above tie in with the surge in Numismatic prices and Gold and Silver? Numismatic pursuits; collecting?
I think we are all just staying home and studying our coins, searching boxes of change for an oft chance at an over looked 90% kennedy half dollar. I know I'm cracking plastic and filling my 7070 and searching for key dates to fill my Whitman folders with Gem 09 s vdb and 55 double dies and just one 1922 plain
If rates went to zero as derry surmised then there would be substantial capital gain. A 5yr bond with a 5% coupon could be trading near 120 if rates went to zero next year.
and if rates had not previously gone to zero you would be saying "rate will never go to zero." LOL
If rates went to zero as derry surmised then there would be substantial capital gain. A 5yr bond with a 5% coupon could be trading near 120 if rates went to zero next year.
and if rates had not previously gone to zero you would be saying "rate will never go to zero." LOL
If rates went to zero as derry surmised then there would be substantial capital gain. A 5yr bond with a 5% coupon could be trading near 120 if rates went to zero next year.
and if rates had not previously gone to zero you would be saying "rate will never go to zero." LOL
So are you saying to buy bonds?
What I'm saying is although Sicily and Sicilians are italian they speak a completely different language. Thus the language consists of Arabic , ancient Greek, catalan and French. So different from mainland Italy 🇮🇹 that it resembles none of the Latin derived Italian that's spoken there on the mainland.
Put it another way Napolian was conceived on the Italian island of Corsica, yes his parents were Italian, but Italy yielded Cosica to the French hence he's called a Frenchman.
@cohodk: I'll clarify what I was saying. Sure, capital gains are possible, as are losses. I am buying bonds at the short end of the spectrum, but I'm definitely not buying them with potential capital gains in mind. For an individual, I think bonds with a 3 month - 2 year maturities are a pretty good place to park one's money at the moment. I will buy and hold, and rethink things in a bit.
@Higashiyama said: @cohodk: I'll clarify what I was saying. Sure, capital gains are possible, as are losses. I am buying bonds at the short end of the spectrum, but I'm definitely not buying them with potential capital gains in mind. For an individual, I think bonds with a 3 month - 2 year maturities are a pretty good place to park one's money at the moment. I will buy and hold, and rethink things in a bit.
Bond capital gains are tied to duration. Since the duration on 3 month - 2 year bonds is very low, the potential for capital gains is very limited. A 2-year probably has a duration of 1.5 years, so let's say if rates FALL 100 bp. (1%) that you can make about 1.5% in cap gains.
Conversely, a 30-year ZERO coupon bond has a duration of 30....rates fall by 1%, the bond goes up by about 30%.
@GoldFinger1969 said: "Bond capital gains are tied to duration"
Yes. One of the very few things in life that I am truly good at is calculating durations of complex assets (ie, with uncertain cash flows subject to multiple contingencies, so, requiring stochastic methods) . This is institutional work. For my personal situation, in the current environment, I am staying very short; and in any case am holding to maturity. So, bond capital gains are basically irrelevant to my situation.
My original (somewhat boring) point was that I'm not going to be buying a five year bond with the expectation of a capital gain.
@derryb said:
bonds are a never ending game of musical chairs. The Ponzi of all Ponzis.
They are a debt security simply higher on the capital structure than equities.
Only because those who believe them to be higher on the capital structure want to believe the game of musical chairs will never be allowed to end. Gold continues to believe otherwise.
@derryb said:
bonds are a never ending game of musical chairs. The Ponzi of all Ponzis.
They are a debt security simply higher on the capital structure than equities.
Only because those who believe them to be higher on the capital structure want to believe the game of musical chairs will never be allowed to end. Gold continues to believe otherwise.
I do not think the game of musical chairs will ever be allowed to end. The game will end not because it is allowed to but because there are no notes of music still standing.
@derryb said:
bonds are a never ending game of musical chairs. The Ponzi of all Ponzis.
They are a debt security simply higher on the capital structure than equities.
Only because those who believe them to be higher on the capital structure want to believe the game of musical chairs will never be allowed to end. Gold continues to believe otherwise.
I don't know if you've ever taken a finance course, but bonds are usually secured investments. They are the antithesis of Ponzi schemes.
Has nothing to do with "musical chairs" -- has to do with participating in the REAL economy through equities and fixed-income. PMs have nothing to do with the real economy as they are a raw input.
If rates went to zero as derry surmised then there would be substantial capital gain. A 5yr bond with a 5% coupon could be trading near 120 if rates went to zero next year. This should probably be the Opinion Forum.
And what do you suppose would happen to stocks if rates went to zero? When stocks begin to crash due to high rates, do you think we're going to see the mother of all QE? I don't see any other way it can go.
Sure, capital gains are possible, as are losses. I am buying bonds at the short end of the spectrum, but I'm definitely not buying them with potential capital gains in mind.
Ed Dowd is saying to raise cash to buy assets later, but even he isn't 100% sure.
I don't know if you've ever taken a finance course, but bonds are usually secured investments. They are the antithesis of Ponzi schemes.
They bend the rules whenever they get into trouble or on a whim. They don't know what they're doing. They cancelled Glass Stegal so that the lending banks could speculate in financial markets and put depositors' funds at risk. Then, when that paradigm went south in 2008, they decided to mark bad debt to maturity for their banking buddies instead of cleaning up the system. Then, they changed the rules to make depositors liable a few years ago, except that the Fed then decided to bail out their rich buddies who had deposits at SVB, but couldn't say whether they'd do that for any other banks, then they decided that taxpayers would bail out everything, at the Fed's discretion, of course. They don't even know what they'll do next (besides create more bailout money). At taxpayers' expense.
Has nothing to do with "musical chairs"
Oh, but it does. Bankruptcy laws have been twisted like pretzels so that banks can be bailed out at the discretion of the Fed, giving preference to their insider buddies.
Musical chairs? It's an inflation manufacturing machine when the Fed issues bonds at will while buying them back as they mature through the back door NY Fed's trading desk. They pump the stock market the same way, buying large cap stocks to keep stocks inflated. The PPT is skewing the markets continuously now.
None of it's legit anymore. The whole banking system is built on leverage and paper, and it's getting harder to manage because it has less and less connection to the real world. They can rehypothecate precious metals all they want, but they can't conjure up the real thing. That's the difference between bonds and precious metals.
My comment was directed towards jmski who thinks bonds are an incantation of Satan.
Nope, they're just a tool being used to maintain a debt-based system that they hope to control totally from the top, down. And you aren't in the club either - even if you think that you are.
Now, goldfinger's going to tell me all the reasons that I'm wrong about the banking system and how honest it is.
Q: Are You Printing Money? Bernanke: Not Literally
I don't know if you've ever taken a finance course, but bonds are usually secured investments. They are the antithesis of Ponzi schemes.
Has nothing to do with "musical chairs" -- has to do with participating in the REAL economy through equities and fixed-income. PMs have nothing to do with the real economy as they are a raw input.
selling more bonds to pay interest on bonds previously sold sure sounds like a ponzi.
Your posts indicate that you are a holdover from pre-2008 textbook economics and fail to understand that the FED has turned the economy into a brave new world. Fundamentals? What fundamentals?
Now, goldfinger's going to tell me all the reasons that I'm wrong about the banking system and how honest it is.
Of course he will, he still believes in free markets and all the other rational thoughts he learned in textbook economics. Economic textbooks are being rewritten as we type.
Since March, five major banks have collapsed: Silicon Valley, Silvergate, Signature Bank, Credit Suisse and now First Republic.
@Soldi said:
Get ready boys and girls ! here comes the last 25 basis point raise, before the pause and a rapid, I mean RAPID decline in interest rates.
I am not sure you are correct. You may want to think this is the last rate hike, but Inflation is not near the 2% that Chairman Powell has targeted. He doesn't want to go down in history as another Arthur Burns or the other Fed chairs who allowed inflation to gradually rise and never really controlled it in the '60s and '70s. Just because the market is being optimistic doesn't make it so.
I think there may be another 25 after this one. That would set up nicely for rate cuts leading into the election year.
@derryb said:
bonds are a never ending game of musical chairs. The Ponzi of all Ponzis.
I don't agree. I would never trade bonds. I would suggest that when you buy a bond you know exactly what to expect (rate and maturity). Rates may go up or down, but you know exactly what you will get at maturity.
@psuman08 said: “He doesn't want to go down in history as another Arthur Burns or the other Fed chairs who allowed inflation to gradually rise and never really controlled it in the '60s and '70s.”
Yes. I’m surprised at how few people appreciate this. The guy is serious, he definitely cares about his legacy and he will not bow to political pressure.
@derryb said:
bonds are a never ending game of musical chairs. The Ponzi of all Ponzis.
I don't agree. I would never trade bonds. I would suggest that when you buy a bond you know exactly what to expect (rate and maturity). Rates may go up or down, but you know exactly what you will get at maturity.
provided the ponzi has not collapsed and the bond seller is able to find buyer who will pay your gains.
Comments
GS protected all parties by prohibiting banks from investing customer deposits. It's these investments alone that have caused bank failures/massive bailouts since repeal of GS. In the GS days you had a bank on one side of the street and a brokerage firm on the other side of the street. Back then brokerage firms had only investor funds to gamble with, not bank deposits. Back then banks had to do their due diligence when making loans.
So anyone who claims GS is a relic does not comprehend what's its repeal really meant.
Give Me Liberty or Give Me Debt
I have no idea of what some of you are talking about. I found this Glass Seagull example just today.
content://com.android.chrome.FileProvider/images/screenshot/16797531916022048786755.jpg
Michael Bennett, current CO Senator, was one of those individuals and he had years/decades of financial experience.
These were NOT a bunch of school teachers with no experience trying to figure out complex solutions.
Always ask what is the worst case that can happen. Clearly, someone did not.
Caveat Emptor.
"Financial Experience" or not, he was/is the main idiot (at best, or co-conspirator at worst).
Anybody with any sense could have seen that things would be going bad. I have no real "financial experience" in complex derivatives. But all I had to do was turn on the television in 2007 and those commercials touting 125% equity home loans told me all that I needed to know.
US money supply falling at fastest rate since 1930s
". . . it is a sign the Fed has no need to raise interest rates further. Given the lag of one to two years between money supply changes and the impact on asset prices and inflation, it may even be a sign that the U.S. central bank should be cutting rates."
Give Me Liberty or Give Me Debt
The Fed will give and very soon too. Fund rate cuts are coming very soon, the economy has got TO GET BACK to reflecting the Dow and not the other way around.
Note the number of Auto Dealers that are NOW offering their own finance rates 0.00% to 4.99%
RESEARCH IT YOURSELF
The Fed has been giving,
...par value for underwater bank securities.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
Yes, that's correct, but it's on the taxpayer and the regular guy thinks nothing of it.
Can you explain how this is on the taxpayer?
Knowledge is the enemy of fear
NO ! It's my opinion!
I don't read Newsweek.
Its a Federal government move.
The Fed >aldrich bill 12 privately held banks< is only temporarily on the hook, then back to US government.
Banks chartered as private corporations. [added so this doesn't go off the rails]
The Fed is easing 50 basis is a pivot title of thread. Soon 0 % being stuck in a glass box and answering to a congress that caused this mess.
This too complicated 😪
A mind exercises for us.
I don't trust the administration.
It's too complicated
Query your question on Google and find a nice long Newsweek article, it will be a study to your answer.
Regards, Michael
I know the answer. But I was asking you as you seem to be quite vocal in your rhetoric yet have no substance to your claim or argument. It just sounds like a typical uniformed rant. Like most in this society, we speak without understanding, claiming our opinions to be facts. This is the danger to our society, not CBDCs or interest rates. Focus your energies on trying to learn and understand. Or not, and continue to be frustrated by questions that are "too complicated".
BTW--Is Newsweek still in business? Haven't seen that name in 20 years.
Knowledge is the enemy of fear
Not an uniformed rant. Was nothing of the kind.
You got your panties in a bunch.
What I tell you to do?
Do it !
The mere fact that we have inflation via rates is enough to quantify my one sentence statement.
What are you looking for ? A thread argument? Or exchange of opinions on how this started? Evolved?
I think your questioning is banal and ill motivated
The thread has moved too far from its point.
Lol.
Knowledge is the enemy of fear
Is it time for the Fed to pause? Considering today's CPI report, I'd say yes.
Core inflation 5.6%
Wages increase 3.3% year over year. Terrible
We're paying for it.
15 years of 0%
When will the Fed cut again?
Sooner than later
5.6% inflation rate is not the target rate. I could see another .25 pt increase. Certainly, things can change before the next FED meeting but I don't think today's numbers alone cause a pause.
one more rate increase then FED will throw out the baby with the bath water as it realizes rates gotta be near zero for their shill game to survive.
Give Me Liberty or Give Me Debt
So.....should we buy bonds?
Knowledge is the enemy of fear
@cohodk asked: So.....should we buy bonds?
Not in anticipation of capital gains. 🤣
So, does any of this help the coin market? Does it instill fear or confidence?
Do we want to buy precious metals at these levels ? Or Stretch our coin budgets to the max ?
@Soldi - IMO it’s time to get out of the red hot US coin market. I fall into the camp that will buy PMs slowly and surely over time. I think silver is the better buy right now but not if you’re buying heavy premium stuff. That being said I am currently working on a couple of gold sets (spouses and commems). It’s a way to keep the set builder in me going while acquiring low premium gold.
Or.maybe income producing assets....like cash.
Knowledge is the enemy of fear
Or.maybe income producing assets....like cash.
Cash is King.
IMHO
Everyone does everything for cash. Even the fear mongers who tell " the economic sky is falling " are taking cash for Gold, Silver etc.
Knowledge is good, I don't eat fries, but cash is king.
If rates went to zero as derry surmised then there would be substantial capital gain. A 5yr bond with a 5% coupon could be trading near 120 if rates went to zero next year.
Knowledge is the enemy of fear
Get ready boys and girls ! here comes the last 25 basis point raise, before the pause and a rapid, I mean RAPID decline in interest rates.
My point all along is that the Fed is in a box. $300 billion "loaned" to banks in one week last month (March) That's QE YES IT IS. only by a different "title"
Metals seem to be holding their ground against a Fed that can pull a rabbit out of it's hat at any time. We all pay for it.
All of the above are FACTS and not Rhetoric ( so do your own studying) Then of course I don't shoot a Kel-Tec or use $59 optics, but I still believe in cold hard cash is king. Rare coins and gold, silver and gold. I do it for the money!
SHTF stories are full of fiction! The dollar losing it's value is World Wide nonsense. You don't want to live in a world where the greenback is not the reserve currency. Believe it; the World doesn't want any other currency to carry the day.
China has two currencies. Why? research first type later.
Gaaddafi wanted a "gold dinar" he's DEAD
Saddam Hussein traded oil outside the dollar; he's DEAD
So how does all of the above tie in with the surge in Numismatic prices and Gold and Silver? Numismatic pursuits; collecting?
I think we are all just staying home and studying our coins, searching boxes of change for an oft chance at an over looked 90% kennedy half dollar. I know I'm cracking plastic and filling my 7070 and searching for key dates to fill my Whitman folders with Gem 09 s vdb and 55 double dies and just one 1922 plain
Right ?????? _NOT _
and if rates had not previously gone to zero you would be saying "rate will never go to zero." LOL
Give Me Liberty or Give Me Debt
So are you saying to buy bonds?
Knowledge is the enemy of fear
What I'm saying is although Sicily and Sicilians are italian they speak a completely different language. Thus the language consists of Arabic , ancient Greek, catalan and French. So different from mainland Italy 🇮🇹 that it resembles none of the Latin derived Italian that's spoken there on the mainland.
Put it another way Napolian was conceived on the Italian island of Corsica, yes his parents were Italian, but Italy yielded Cosica to the French hence he's called a Frenchman.
Bonaparte does that sound French to you?
@cohodk: I'll clarify what I was saying. Sure, capital gains are possible, as are losses. I am buying bonds at the short end of the spectrum, but I'm definitely not buying them with potential capital gains in mind. For an individual, I think bonds with a 3 month - 2 year maturities are a pretty good place to park one's money at the moment. I will buy and hold, and rethink things in a bit.
Bond capital gains are tied to duration. Since the duration on 3 month - 2 year bonds is very low, the potential for capital gains is very limited. A 2-year probably has a duration of 1.5 years, so let's say if rates FALL 100 bp. (1%) that you can make about 1.5% in cap gains.
Conversely, a 30-year ZERO coupon bond has a duration of 30....rates fall by 1%, the bond goes up by about 30%.
Big Week: FOMC meets Tuesday/Wednesday, with Powell's press conference Wednesday at 2:30 PM.
Friday is Non-Farm Payrolls.
@GoldFinger1969 said: "Bond capital gains are tied to duration"
Yes. One of the very few things in life that I am truly good at is calculating durations of complex assets (ie, with uncertain cash flows subject to multiple contingencies, so, requiring stochastic methods) . This is institutional work. For my personal situation, in the current environment, I am staying very short; and in any case am holding to maturity. So, bond capital gains are basically irrelevant to my situation.
My original (somewhat boring) point was that I'm not going to be buying a five year bond with the expectation of a capital gain.
Nor should.you. My comment was directed towards jmski who thinks bonds are an incantation of Satan.
Knowledge is the enemy of fear
bonds are a never ending game of musical chairs. The Ponzi of all Ponzis.
Give Me Liberty or Give Me Debt
They are a debt security simply higher on the capital structure than equities.
Only because those who believe them to be higher on the capital structure want to believe the game of musical chairs will never be allowed to end. Gold continues to believe otherwise.
Give Me Liberty or Give Me Debt
Did I ever > @derryb said:
I do not think the game of musical chairs will ever be allowed to end. The game will end not because it is allowed to but because there are no notes of music still standing.
deleted
I don't know if you've ever taken a finance course, but bonds are usually secured investments. They are the antithesis of Ponzi schemes.
Has nothing to do with "musical chairs" -- has to do with participating in the REAL economy through equities and fixed-income. PMs have nothing to do with the real economy as they are a raw input.
If rates went to zero as derry surmised then there would be substantial capital gain. A 5yr bond with a 5% coupon could be trading near 120 if rates went to zero next year. This should probably be the Opinion Forum.
And what do you suppose would happen to stocks if rates went to zero? When stocks begin to crash due to high rates, do you think we're going to see the mother of all QE? I don't see any other way it can go.
Sure, capital gains are possible, as are losses. I am buying bonds at the short end of the spectrum, but I'm definitely not buying them with potential capital gains in mind.
Ed Dowd is saying to raise cash to buy assets later, but even he isn't 100% sure.
I don't know if you've ever taken a finance course, but bonds are usually secured investments. They are the antithesis of Ponzi schemes.
They bend the rules whenever they get into trouble or on a whim. They don't know what they're doing. They cancelled Glass Stegal so that the lending banks could speculate in financial markets and put depositors' funds at risk. Then, when that paradigm went south in 2008, they decided to mark bad debt to maturity for their banking buddies instead of cleaning up the system. Then, they changed the rules to make depositors liable a few years ago, except that the Fed then decided to bail out their rich buddies who had deposits at SVB, but couldn't say whether they'd do that for any other banks, then they decided that taxpayers would bail out everything, at the Fed's discretion, of course. They don't even know what they'll do next (besides create more bailout money). At taxpayers' expense.
Has nothing to do with "musical chairs"
Oh, but it does. Bankruptcy laws have been twisted like pretzels so that banks can be bailed out at the discretion of the Fed, giving preference to their insider buddies.
Musical chairs? It's an inflation manufacturing machine when the Fed issues bonds at will while buying them back as they mature through the back door NY Fed's trading desk. They pump the stock market the same way, buying large cap stocks to keep stocks inflated. The PPT is skewing the markets continuously now.
None of it's legit anymore. The whole banking system is built on leverage and paper, and it's getting harder to manage because it has less and less connection to the real world. They can rehypothecate precious metals all they want, but they can't conjure up the real thing. That's the difference between bonds and precious metals.
My comment was directed towards jmski who thinks bonds are an incantation of Satan.
Nope, they're just a tool being used to maintain a debt-based system that they hope to control totally from the top, down. And you aren't in the club either - even if you think that you are.
Now, goldfinger's going to tell me all the reasons that I'm wrong about the banking system and how honest it is.
I knew it would happen.
selling more bonds to pay interest on bonds previously sold sure sounds like a ponzi.
Your posts indicate that you are a holdover from pre-2008 textbook economics and fail to understand that the FED has turned the economy into a brave new world. Fundamentals? What fundamentals?
Give Me Liberty or Give Me Debt
@jmski52 said: "They pump the stock market the same way, buying large cap stocks to keep stocks inflated."
Can you name a large cap stock owned by the Fed?
Of course he will, he still believes in free markets and all the other rational thoughts he learned in textbook economics. Economic textbooks are being rewritten as we type.
Since March, five major banks have collapsed: Silicon Valley, Silvergate, Signature Bank, Credit Suisse and now First Republic.
Give Me Liberty or Give Me Debt
Wall Street
Give Me Liberty or Give Me Debt
Microsoft, for one.
I knew it would happen.
@jmski52 said “Microsoft, for one.”
I don’t think so.
I am not sure you are correct. You may want to think this is the last rate hike, but Inflation is not near the 2% that Chairman Powell has targeted. He doesn't want to go down in history as another Arthur Burns or the other Fed chairs who allowed inflation to gradually rise and never really controlled it in the '60s and '70s. Just because the market is being optimistic doesn't make it so.
I think there may be another 25 after this one. That would set up nicely for rate cuts leading into the election year.
I don't agree. I would never trade bonds. I would suggest that when you buy a bond you know exactly what to expect (rate and maturity). Rates may go up or down, but you know exactly what you will get at maturity.
Bond funds are a joke.
calculator/> @jmski52 said:
I have owned Microsoft for 18 years
I give away money. I collect money.
I don’t love money . I do love the Lord God.
@psuman08 said: “He doesn't want to go down in history as another Arthur Burns or the other Fed chairs who allowed inflation to gradually rise and never really controlled it in the '60s and '70s.”
Yes. I’m surprised at how few people appreciate this. The guy is serious, he definitely cares about his legacy and he will not bow to political pressure.
provided the ponzi has not collapsed and the bond seller is able to find buyer who will pay your gains.
Give Me Liberty or Give Me Debt