dow jones

Thebrownblob

Well-Known Member

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newfie

Well-Known Member
its a slow bleed down right now. Fed is going to keep jacking interest rates.

Biden just added about 2 trillion to the economy when cutting government spending is the way to lower inflation.

interests going up will deepen the recession.
spending is slowing , housing market is slowing , yield curve is dipping.

the only good news right now is the job market but its a matter of time before corporations start wacking jobs and cutting back on spending.
 

PT Car Washer

Well-Known Member
its a slow bleed down right now. Fed is going to keep jacking interest rates.

Biden just added about 2 trillion to the economy when cutting government spending is the way to lower inflation.

interests going up will deepen the recession.
spending is slowing , housing market is slowing , yield curve is dipping.

the only good news right now is the job market but its a matter of time before corporations start wacking jobs and cutting back on spending.
The sky is falling, the sky is falling.
 

Thebrownblob

Well-Known Member
The sky is falling, the sky is falling.
I know you’re being facetious but what you don’t understand is it actually is. And it’s the march from the left to the right that’s destroying the country. Both parties are responsible. The only difference between the two parties is the speed at which we get there and right now we are in a sports car.

 

Up In Smoke

Well-Known Member
The government, businesses and individuals for the last 14 years were spoiled with cheap financing. Why pay down debt when you can refinance it and pretend the cycle will continue forever. Why buy housing in your price range when regulation standards allow you to buy 20% more than you should. Powell has the task of unwinding a decade of bad fiscal policies and government refinancing. We are a consumer driven economy and the consumer will dictate the Fed's path. The second quarter earnings were better than expected and companies are trading at or near historic P/E ratios. Wall Street will be just fine, it's Main Street that will feel the pain.
 
The government, businesses and individuals for the last 14 years were spoiled with cheap financing. Why pay down debt when you can refinance it and pretend the cycle will continue forever. Why buy housing in your price range when regulation standards allow you to buy 20% more than you should. Powell has the task of unwinding a decade of bad fiscal policies and government refinancing. We are a consumer driven economy and the consumer will dictate the Fed's path. The second quarter earnings were better than expected and companies are trading at or near historic P/E ratios. Wall Street will be just fine, it's Main Street that will feel the pain.
It's the end of cheap money for a while
 

PT Car Washer

Well-Known Member
Normal business cycle only excessive money printing will make this downturn significantly worse.
So far I have not seen any sign of a downturn. 3% unemployment, wages are up, commercial and residential building is booming. If your 401k or IRA took a hit it is because you made some poor investment decisions.
 

vantexan

Well-Known Member
So far I have not seen any sign of a downturn. 3% unemployment, wages are up, commercial and residential building is booming. If your 401k or IRA took a hit it is because you made some poor investment decisions.
So the view from your head in the sand is looking pretty good huh? Good luck!
 

Up In Smoke

Well-Known Member
Normal business cycle only excessive money printing will make this downturn significantly worse.
When the Fed raises rates and switches to QT, they are actually restricting the money that enters the economy. The dollar strengthens, spreads grow and treasuries become investment worthy again.
 

Wally

BrownCafe Innovator & King of Puns
When the Fed raises rates and switches to QT, they are actually restricting the money that enters the economy. The dollar strengthens, spreads grow and treasuries become investment worthy again.
How's Biden’s inflation fighting spending scheme supposed to knock out inflation?
 

Up In Smoke

Well-Known Member
How's Biden’s inflation fighting spending scheme supposed to knock out inflation?
Inflation by and large is the Feds task. Monetary policies and rates based on current and forward looking guidelines. Powell flinched in 2019 and when Covid hit, they had spent all their ammunition. They was talk of even going to negative rates to keep the economy from imploding. The greatest economy in the world can't seem to function without the Fed injecting cheap cash into it.
 
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