Remember when I suggested that we “crash it until the Fed surrendered?” Well, we kind of did that, no?
Now the most retarded of the Fed hawks, Fed’s Bullard, is rethinking his stupidity, which is the reason why we’re rallying–other than the oversold nature of the bounce.
What happens if the Fed backs off their “dot plot” and adopts a supporting role for equity markets? We.fucking.surge.
The odds for a March rate hike are now down to 30%, meaning the market is calling the Fed’s bluff. This is an encouraging development and should be monitored very closely.
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As a result of the rate hike and associated market crash, maybe some of the banks that make up the Federal Reserve lost more money in their stock portfolios than they gained in interest on loans and credit card rates. So maybe they are now leaning on the Fed and said “Okay, that’s enough with the rate hikes.”
Let’s hope so. If you want the market to be bullish, you have to hope that these banks that the Fed listens to, have very big stock portfolios– and that, if they don’t, they are buying them soon.
Approximately 38 percent of the 8,039 commercial banks in the United States are members of the Federal Reserve System, according to their web site.
the fed blinks and so they still have the stocked markets backs
The Fed did what the market, with 87% probability, expected it to do. “Experts” believed it would be the best thing for the market. So here we are. I guess I’m wondering, what will be the market response if the Fed postpones future increases or even reverses field?