So, I’m awful sorry about the parade of greatest misses that I have blanketed this page with, and apologize to subscribers, and Twitter users.
But I fucking called it that The Fed was trying to claw its money back after the bug, and way too fucking quickly. Powell’s interest increases came too fast for fractional reserve banks to factor in the cost of borrowing from the federal reserve, and now we have three overleveraged banks who did too much lending that will now be sold for parts by the Fed, and many investors do not know when they will get their money back save for the $250K they are insured for.
Powell should be fired immediately-that may be Biden’s call, unless Biden or Yellen has already called Powell and told him to get his foot off the fucking gas.
This is elementary school logic-when no one is consuming because everyone is afraid to leave the house-you WAIT until they start shopping again before you decide it’s time to erase the nine trillion we HAD to borrow. Incrementalism gets a bad name, but it is the only game in town if your economy is hanging by a thread. Tiny hikes…pause, see how the pebble ripples, add a quarter point if the pebble skips safely. But this is not a Volcker moment-inflation is high, but so are wages. Those gas prices you are seeing are plummeting. You have no savings, so quit worrying about getting a return on it. Service your debts, stay frosty, and pray to the gods that Powell gets what’s coming to him as banks continue to fail.
Recession? I’m not so sure we can call what’s about to happen that word.