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Latest Fed Rate Hike

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Taco
Elite Upper Class Poster
Posts: 4622
Joined: July 9th, 2011, 5:30 pm

Latest Fed Rate Hike

Post by Taco » June 20th, 2017, 2:50 am

No one cares about interest rate hikes and that will never change. However, the latest rate hike a few days ago by the Fed is a problem. The Fed has raised rates 3 times in the last 6 months.

The Fed is about to start WITHDRAWING liquidity from the markets. And not a little: $10 billion per month this quarter, and $20 billion per month in 4Q17.

What’s the deal here?

The Fed is “taking away the punchbowl” from the markets. Sure, stocks might hold up relatively well today or tomorrow, but the reality is that the $14 trillion market rig of the last seven years is ending

Fed Raises Interest Rates For Second Time In 2017
https://www.forbes.com/sites/laurengens ... 6aa3016987

How an Inverted Yield Curve Predicts a Recession
https://www.thebalance.com/inverted-yield-curve-3305856

There is a clear trend to this yield curve chart… and it’s NOT up.

Image

Image

Successive interest rate hikes causes a collapsing yield curve which in turn crashes the bond market first and the stock markets afterwards as this video explains.

[youtube]https://www.youtube.com/watch?v=8Ox7l5G_jBE[/youtube]
“Every time a President leaves the White House after two terms, there is a recession within the next year"

Taco
Elite Upper Class Poster
Posts: 4622
Joined: July 9th, 2011, 5:30 pm

Re: Latest Fed Rate Hike

Post by Taco » June 22nd, 2017, 4:18 pm

Jobless claims data near 44 year lows further confirms the historical pattern that suggests yield curve inversion looms...

Image
“Every time a President leaves the White House after two terms, there is a recession within the next year"

HouseMD
Experienced Poster
Posts: 1542
Joined: February 14th, 2012, 3:20 am
Location: Buried Under a Pile of Books

Re: Latest Fed Rate Hike

Post by HouseMD » June 26th, 2017, 5:42 pm

Wasn't it you that was saying rates were too low and it was a sign of collapse, now you're saying they're going up and it's a sign of collapse- at least be consistent, wtf.

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