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Fed Warns of Water being potentially very wet
creepycoug
Member Posts: 24,431
https://www.cnbc.com/2021/05/06/fed-warns-of-possible-significant-declines-in-stocks-as-valuations-climb.html
Fed Chairman Jerome Powell and others have been asked repeatedly about whether they’re concerned over the rising prices. Powell specifically has said that as long as interest rates stay low, the valuations are justified.
“High asset prices in part reflect the continued low level of Treasury yields. However, valuations for some assets are elevated relative to historical norms even when using measures that account for Treasury yields,” the report states. “In this setting, asset prices may be vulnerable to significant declines should risk appetite fall.”
Fed Chairman Jerome Powell and others have been asked repeatedly about whether they’re concerned over the rising prices. Powell specifically has said that as long as interest rates stay low, the valuations are justified.
“High asset prices in part reflect the continued low level of Treasury yields. However, valuations for some assets are elevated relative to historical norms even when using measures that account for Treasury yields,” the report states. “In this setting, asset prices may be vulnerable to significant declines should risk appetite fall.”
Comments
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With our debt level, don’t expect interest rates to rise much
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I don't think they can do it because they can't control the outcome. It would crater the market bigly.greenblood said:With our debt level, don’t expect interest rates to rise much
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The government is hoping a recovery can put a band aid over the rising inflation. Something has to give. Either inflation or interest rates. I think rising inflation can be tolerated more than rising interests rates at this point. That’s why crypto and precious metals have hit at or close to record highs.creepycoug said:
I don't think they can do it because they can't control the outcome. It would crater the market bigly.greenblood said:With our debt level, don’t expect interest rates to rise much
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Especially given the role of housing in our economy. It feeds so many industries. Housing tanks on rising interest rates.greenblood said:
The government is hoping a recovery can put a band aid over the rising inflation. Something has to give. Either inflation or interest rates. I think rising inflation can be tolerated more than rising interests rates at this point. That’s why crypto and precious metals have hit at or close to record highs.creepycoug said:
I don't think they can do it because they can't control the outcome. It would crater the market bigly.greenblood said:With our debt level, don’t expect interest rates to rise much
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The more bizarre the problems are, the more bizarre the solutions become until investors defensive position moves become an intricate game of twister and they finally say fuck it, I’m out
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When the government has to use fiscal jiu jitsu to keep the market from tanking, you know the bottom is about to fall.creepycoug said:
Especially given the role of housing in our economy. It feeds so many industries. Housing tanks on rising interest rates.greenblood said:
The government is hoping a recovery can put a band aid over the rising inflation. Something has to give. Either inflation or interest rates. I think rising inflation can be tolerated more than rising interests rates at this point. That’s why crypto and precious metals have hit at or close to record highs.creepycoug said:
I don't think they can do it because they can't control the outcome. It would crater the market bigly.greenblood said:With our debt level, don’t expect interest rates to rise much
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I know. But we’ve been saying this since ... I’ve lost track of when.greenblood said:
When the government has to use fiscal jiu jitsu to keep the market from tanking, you know the bottom is about to fall.creepycoug said:
Especially given the role of housing in our economy. It feeds so many industries. Housing tanks on rising interest rates.greenblood said:
The government is hoping a recovery can put a band aid over the rising inflation. Something has to give. Either inflation or interest rates. I think rising inflation can be tolerated more than rising interests rates at this point. That’s why crypto and precious metals have hit at or close to record highs.creepycoug said:
I don't think they can do it because they can't control the outcome. It would crater the market bigly.greenblood said:With our debt level, don’t expect interest rates to rise much
@HoustonHusky @pawz -
creepycoug said:
I know. But we’ve been saying this since ... I’ve lost track of when.greenblood said:
When the government has to use fiscal jiu jitsu to keep the market from tanking, you know the bottom is about to fall.creepycoug said:
Especially given the role of housing in our economy. It feeds so many industries. Housing tanks on rising interest rates.greenblood said:
The government is hoping a recovery can put a band aid over the rising inflation. Something has to give. Either inflation or interest rates. I think rising inflation can be tolerated more than rising interests rates at this point. That’s why crypto and precious metals have hit at or close to record highs.creepycoug said:
I don't think they can do it because they can't control the outcome. It would crater the market bigly.greenblood said:With our debt level, don’t expect interest rates to rise much
@HoustonHusky @pawz
* AHEM * -
I remember reading Aftershock in 2012 and it was saying they felt bad for whichever president won the 2012 election, because they would be presiding over the biggest economic collapse in history.creepycoug said:
I know. But we’ve been saying this since ... I’ve lost track of when.greenblood said:
When the government has to use fiscal jiu jitsu to keep the market from tanking, you know the bottom is about to fall.creepycoug said:
Especially given the role of housing in our economy. It feeds so many industries. Housing tanks on rising interest rates.greenblood said:
The government is hoping a recovery can put a band aid over the rising inflation. Something has to give. Either inflation or interest rates. I think rising inflation can be tolerated more than rising interests rates at this point. That’s why crypto and precious metals have hit at or close to record highs.creepycoug said:
I don't think they can do it because they can't control the outcome. It would crater the market bigly.greenblood said:With our debt level, don’t expect interest rates to rise much
@HoustonHusky @pawz -
Agree 100% with this, but still think the party is a bit early on the jiu jitsu...its like when you were young and playing the field and just realizing there are some truly batshit crazy women out there. We are looking for our next Sonjas...greenblood said:
When the government has to use fiscal jiu jitsu to keep the market from tanking, you know the bottom is about to fall.creepycoug said:
Especially given the role of housing in our economy. It feeds so many industries. Housing tanks on rising interest rates.greenblood said:
The government is hoping a recovery can put a band aid over the rising inflation. Something has to give. Either inflation or interest rates. I think rising inflation can be tolerated more than rising interests rates at this point. That’s why crypto and precious metals have hit at or close to record highs.creepycoug said:
I don't think they can do it because they can't control the outcome. It would crater the market bigly.greenblood said:With our debt level, don’t expect interest rates to rise much
As an example, I’m just waiting for the government response to inflation being more govt handouts and larger deficits/printing of money....you know, truly crazy shit any 2 year old would think is stupid and any Federal Reserve banker and politician will rationalize away...maybe some attempting to regulate rents and prices or some really stupid shit.
That said, the ARKK chart is truly nasty...
