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Here’s the Real Reason Why the Fed is Cutting Rates

I challenged you to think about why the Fed was cutting rates earlier because on paper thing are good.

Unemployment is low
Sales are strong
Profit margins are good
Stocks are near record highs

It’s a curious thing to need to cut rates when at record highs. But beneath the veneer is a categorically odious facade.

A debt maturity wall looms in the literal sense.

If the Fed doesn’t start to cutting rates soon and fast, then a wide swath of companies might go bust, facing quadruple the amount of debt maturities from now till 2028.

That’s all this is, financial engineering and the Fed, for once, getting ahead of the curve. If done right, we might all benefit from this and perhaps create another giant bubble to worry about by 2028.

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One comment

  1. flea

    “then a wide swath of companies might go bust.” Zombies. Let them go. The whole economic sphere will be cleaned up, improved and honest hard-working men can prosper again according to their skills and efforts.

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