Investing General Discussion

Flobee

Flobee

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Haus said:
I'm watching the Warsh confirmation hearing right now. I will say as to Trump's comments. As has been hammered ad nauseum in the politics threads, he's gonna say what he's gonna say...

Interesting take that I find actually refreshing if Warsh can REALLY do the Fed Reserve job to these statements he made:
  • The fed shouldn't be talking about what they want interest rates at during the next quarter, half or year. Interest rates need to be set now to what they need to be to achieve the mandate.
  • The fed maintaining a large balance sheet is taking the fed out of monetary policy and into fiscal policy which is counterproductive and bad. The balance sheet should only be a tool leveraged in extreme emergencies, and it should be wound down safely to zero when not in an emergency.
With that said, we also all know he's going to say whatever he needs to get confirmed. He also denied that he made any promises regarding interest rates to Trump even thought Trump has outright said he would only support a fed chair who would deliver rate cuts.
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Warsh to his credit has been publicly consistent on his stances regarding Fed policy, balance sheet, etc.

I still expect him to print an insane amount of $$$, but that will be a break with his career rhetoric. If he does what he says he wants to do we're in for some short term pain for sure IMO
 
Haus

Haus

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Flobee said:
Warsh to his credit has been publicly consistent on his stances regarding Fed policy, balance sheet, etc.

I still expect him to print an insane amount of $$$, but that will be a break with his career rhetoric. If he does what he says he wants to do we're in for some short term pain for sure IMO
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At least he tried to set the stage for some of that. He mentioned that we've built a huge Fed Balance Sheet over the last 18 years, and it's going to take a lot longer than 18 minutes to fix that. But said it needed to be done, and he'd have to work with the Treasury to make that happen.
 
Flobee

Flobee

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Haus said:
At least he tried to set the stage for some of that. He mentioned that we've built a huge Fed Balance Sheet over the last 18 years, and it's going to take a lot longer than 18 minutes to fix that. But said it needed to be done, and he'd have to work with the Treasury to make that happen.
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I agree with what he's saying but...

La Believe GIF
 
Haus

Haus

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Flobee said:
I agree with what he's saying but...

La Believe GIF
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That fair until he either proves or disproves his commitments. But as mentioned elsewhere, you can go back in his history and the majority of what he's said is completely consistent with his previous stated beliefs.
 
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Jysin

Jysin

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Cad said:
Dude you are a lot braver than me! Good show.
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Strangely in something wild like this, I feel safer in premarket where it cant vol halt and really fuck you over by gapping $100s.

It closed at highs of day. It also had a monster intraday swing from a low of $570 to nearly $770!

Until the float lockup is flushed out, there is still upside risk.
 
Cad

Sheriff Cad

scientia potentia est
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Jysin said:
Strangely in something wild like this, I feel safer in premarket where it cant vol halt and really fuck you over by gapping $100s.

It closed at highs of day. It also had a monster intraday swing from a low of $570 to nearly $770!

Until the share lockup is flushed out, there is still upside risk.
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I don't feel like I understand those situations well enough to know when it's getting silly and when it's an opportunity. So it all seems scary to me because I can't see the windows. In that case, the best game is not to play.
 
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