Investing General Discussion

Zog

Blackwing Lair Raider
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I feel like when neo sees the black cat in the stairwell.

The bounce in futures was on time but the cpi is on wednesday (i read someone else say it was today) but at 8:30 you see prices really start taking off.

Weirdest shit ever. Glitch in the matrix.
 

Jysin

Ahn'Qiraj Raider
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Aaaaaand... we're red on the day on all indexes.

SPY approaching yesterday's low. I can smell the capitulation phase brewing.
 
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Sanrith Descartes

Von Clippowicz
<Gaming Ghost>
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Aaaaaand... we're red on the day on all indexes.

SPY approaching yesterday's low. I can smell the capitulation phase brewing.
Yeah signaling a min of two 50 basis point hikes just gutted it. The funny part is what the fuck do investors think is going to happen, no rate hikes and we just run to 30% inflation?
 

Jysin

Ahn'Qiraj Raider
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Mester in a Bloomberg interview today also said: "Fed hasnt ruled out 75bp hikes forever"
 

Jysin

Ahn'Qiraj Raider
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- FOLLOW UP: Mester: The process will not be smooth, road ahead will be bumpy; Unemployment may have to rise as part of rate raising process - press interview
- We may get another quarter of negative growth (implying a recession)
- Want to see evidence that inflation is slowing
- Do not expect inflation to move to 2% target by end of 2022 or 2023
- The financial markets' plumbing is working
- At this point inflation is just way too high
 

Gravel

Mr. Poopybutthole
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On top of that:

09:38 (US) Fed's Mester (FOMC voter, hawk): We need to move rates up at a pace to get inflation moving
- Comfortable moving 50 basis points at next couple meetings but will remain data dependent
- Need to see compelling evidence that inflation is moving lower, have NOT seen that yet
- Reiterates neutral is ~2.5%; Will probably have to go above neutral to get inflation down
- We could see another negative GDP print and may need to see unemployment rise
- Do not think Fed policy will put economy into sustained downturn
- Will need to consider selling MBS at some point
Wasn't it just last week they said inflation was expected to be under control?

These jackasses, man...
 
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Sanrith Descartes

Von Clippowicz
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"under control" .. the new "transitory"
They are absolutely powerless and just won't admit it. They know there is no such thing as a soft landing but refuse to pull the band-aid off and just fix shit. They are just letting it bleed until inflation eventually just kills the economy.
 
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Zzen

Potato del Grande
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Should’ve just stayed cash gang lol

oof-old-man.gif
 

Creslin

Trakanon Raider
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With how much wealth is being destroyed by the markets right now they may start to make some real headway, it should force people back to work and start delaying retirements. The only part of inflation they can really do anything about is the wage price spiral after all. They (the fed not Brandon) can't do much about Russia and can't do much about China deciding to lock down every other week.

If they went straight to 5% you would see bank failures and the capital markets seize up, we might see some soon as it is.
 

Sanrith Descartes

Von Clippowicz
<Gaming Ghost>
41,535
107,627
With how much wealth is being destroyed by the markets right now they may start to make some real headway, it should force people back to work and start delaying retirements. The only part of inflation they can really do anything about is the wage price spiral after all. They (the fed not Brandon) can't do much about Russia and can't do much about China deciding to lock down every other week.

If they went straight to 5% you would see bank failures and the capital markets seize up, we might see some soon as it is.
Raising rates would cause bank failures? How so?