If the Fed didn't drop 25 basis points, AS EVERYONE EXPECTED, the outcome would have been much worse than one bad day. There's way too much overanalyzing going on. The stock market is overvalued because of free money and stock buybacks for over a decade. All the mismanaged data gathering and interpretation is just a distraction from the Unrealized Losses on all the major banks books. As I type this at 14:45 Jim says rates should be higher to grow the economy faster...that isn't true right now, if ever. Raising rates after 12 years of 0% has trillion$ in debt being serviced and renegotiated with new loans, at higher rates, which causes bottom lines to increase and therefore higher prices or layoffs to cover increased costs. Inflation is happening because it's the only thing keeping Wall Street in business. They can't have 0 employees but they can try 100% higher prices. Prices will continue to rise, and the 70% paycheck to paycheck will be 75%, then 80%, if it can go on that long. Consumers are running out of methods to consume in a consumption based economy. It can't get worse than installment payments on groceries. We are at the bottom before the glass floor shatters. As long as the economists still talk as if their textbooks are bibles, people will continue to be confused as to why it doesn't make sense. Banks are insolvent. Period. Everything is connected to the dollar and we spend a crapload on military while going $36 trillion in debt. That's why we're doing better. If these other struggling economies just default spent $1.5trillion, or equivalent, on "defense" and could borrow like we do, their economies wouldn't be as bad.
not sure what you are implying. considering only inflation, there was no need to cut 50bps in sept. now if you are saying that they are accepting inflation to avoid bank failures, well, that's not working so well cuz while yield spreads give banks profits, the rate cut resulted in higher long rates which increased unrealized upside down loans on the balance sheets of all (including the fed).
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Thanks Jim, always a pleasure listen to you.
This was great thank you
Great stuff Jim
The BoJ's increase was not a surprise. The bullish outlook for additional hikes was what drove the unwind.
where's the 6% - 7% return coming from that Jim is referring to?
Timestamps please.
Except for the prison part, it was Larry Summer's quote.
Please make a account of Bluesky, Mr Bianco.
Thanks for your video always.
If the Fed didn't drop 25 basis points, AS EVERYONE EXPECTED, the outcome would have been much worse than one bad day. There's way too much overanalyzing going on. The stock market is overvalued because of free money and stock buybacks for over a decade. All the mismanaged data gathering and interpretation is just a distraction from the Unrealized Losses on all the major banks books. As I type this at 14:45 Jim says rates should be higher to grow the economy faster...that isn't true right now, if ever. Raising rates after 12 years of 0% has trillion$ in debt being serviced and renegotiated with new loans, at higher rates, which causes bottom lines to increase and therefore higher prices or layoffs to cover increased costs. Inflation is happening because it's the only thing keeping Wall Street in business. They can't have 0 employees but they can try 100% higher prices. Prices will continue to rise, and the 70% paycheck to paycheck will be 75%, then 80%, if it can go on that long. Consumers are running out of methods to consume in a consumption based economy. It can't get worse than installment payments on groceries. We are at the bottom before the glass floor shatters.
As long as the economists still talk as if their textbooks are bibles, people will continue to be confused as to why it doesn't make sense. Banks are insolvent. Period. Everything is connected to the dollar and we spend a crapload on military while going $36 trillion in debt. That's why we're doing better. If these other struggling economies just default spent $1.5trillion, or equivalent, on "defense" and could borrow like we do, their economies wouldn't be as bad.
not sure what you are implying. considering only inflation, there was no need to cut 50bps in sept. now if you are saying that they are accepting inflation to avoid bank failures, well, that's not working so well cuz while yield spreads give banks profits, the rate cut resulted in higher long rates which increased unrealized upside down loans on the balance sheets of all (including the fed).
4 minutes in..a total waste of time so far.
Annoying.