iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,443 Blog Posts

Monetary Madness: Kudlow Calls For ‘Immediate’ 50 Basis Point Cut by the Fed — Cease Reduction of Balance Sheet

Okay, I’ve had enough and cannot take anymore.

The market is within an earshot of record highs, and the Trump administration is calling on the Fed to ‘immediately’ slash interest rates by 50bps? What in the fuck?

No, you do not slash rates when times are good, when everyone is fat — living high off the hog — faces filled with puffed pastries and sordid cheeseburgers that fetch $50 a pop. Unemployment is sub 4% and wage growth is burning hot at 3.4%. The idea that we need an emergency rate cut is laughable. But, lo and behold, Fed Funds futures are now indicating a 62% chance of a cut in December and a 72% chance of one in January 2020.

We’re living in fucked times — when down is up and vice versa. Rates will, mind you, fall victim to ravenous market forces and bolt higher soon. You’d be wise to sell bonds short here — get long some banks — blow out of those high dividend payers that recently enjoyed respite. The REITs and the Utes will soon come under selling pressure, because no one gives a shit what Larry Kudlow has to say about rates. If the market is near new highs and the economy humming along — interest rates will be forced higher.

On this present path, higher oil, lower rates, the pipelines look like an idea that could stick.

Aside from that, I had a fine day — with gains in TIGR, GNFT and HCLP. I really like frackers here. Losses are accentuated by my emotionally driven purchase of LYFT. Quant was up and will be closed out on Monday for a new portfolio.

God speed and have a great weekend.

 

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29 comments

  1. edge

    Trump wants to win in 2020. He’ll do just anything to get there.
    If everything blows up after 11/20- so what? He got his.

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    • edge

      LOL
      An hour later he said the economy wasn’t slowing.

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    • irma vep

      Instead of Tulipmania it’s Trumpmania. Not sure the two correlate but I could give it a go if I wasn’t busy elsewise. Hey, the good ‘ol GOP peeps propped him up just enough and let him loose. I believe in the Electoral College, I think, but I’m sure as I am that there is a God that I believe in the popular vote – – which lost.

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  2. jonnybegood2

    now i am collecting LYFT after hours. under 77.5. hope it ends well.

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    • jonnybegood2

      and all unloaded at the market close price of 78.29. i think i am done for the evening.

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  3. s.k.

    The party of fiscal responsibility strikes again.

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  4. gsofield

    So fed the fuck up with these jawboning assholes. Let the markets do what they do and STFU you short sighted pricks. Fucking middle class is going the way of the Dodo. Fuckers won’t be happy until they have it all.

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    • irma vep

      To quote Bruce Springsteen, “Poor man wanna be rich, rich man wanna be King, and a King ain’t satisfied ’til he rules everything.” – Song “Badlands”

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  5. heckler

    I say cut rates and double the market and let’s have the biggest blow off rug pull that stocks have ever seen! The nouveau riche will get their nuts chopped off and pikers like me will get to ride the enthusiasm up and then have a level playing field when it’s time for the bodies to be collected.

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    • numbersgame

      Unfortunately, that’s not the way it will happen. The middle-calss with their “professionally” manged IRAs and 401ks will be told “who coulda known?” and “at least we were only down 35% instead of 40%” – or more liekly “we only underperformed by 5% (down -40% instead of -35%)”.

      A few “pikers” will buy low, but most of that will be collected by the 1% after the market falls. Plus a few gov’t bailouts, supply-side style, of course.

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  6. ferd

    Simply, Trump has been – and now Cud is as well – taking blame-the-Fed-not-me insurance out in case the economy turns down.

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    • edge

      I think they’re going to do everything possible to keep this going until 11/20. Consequences be damned.
      There isn’t likely to be a fiscal stimulus so the monetary route is all they have, and they might get it if they can get the public and markets ginned up enough.
      But blame the Fed is a great plan “B”.

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  7. ericbakerbruce

    His coke addiction has left him deranged and delusional.

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    • irma vep

      Supposedly he’s clean and has found God. He even converted to Catholcism.

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  8. irma vep

    Commander Fly, you should post more comments on your blog. I know you are extremely busy, and you take the time write your magnifcently eloquent prose plus you are actively trading, etc. etc. etc. but a few comments on the comments would be nice. By the way, Howard Lindzon said my question about a crypto currency backed by Gold is “dumbe “. “Why would anyone even consider it. Blah. Blah.” You, Sensei Fly, did say “It will never happen.” You were kinder than Lindzon! Thank you. By the way he answered my question on the GoToMeeting podcast with Eddi Elfenbein. You and Mr Macke should be the next guest stars.

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    • irma vep

      In fact, give the job to your most trusted chattel.

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    • edge

      As a currency it might not work. But if available people could use it for an under the radar way to trade gold…many would find it useful it would seem. I couldn’t say if the details are feasible, but otherwise, a pretty good idea.

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      • irma vep

        edge, if you are referring to my musing over a Gold backed crypto currency, thanks for your response. I’ll take any response good, bad, inssulting; I like to think I’m a level headed adult with a wild imagination. Even though M. Fly said “it will never happen” and Howard Lindzon thinks it “dumb” (insulting).

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        • edge

          If I was in the financial industry I would throw cold water on that idea. Then I would busily work out the details before someone else did.

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  9. WrongView

    Remember how you re-posted Infowars stuff and lionized Alex Jones in 2016? Did you see he now claims he was psycotic at the time?

    https://www.statesman.com/news/20190329/alex-jones-blames-psychosis-for-sandy-hook-hoax-claim?template=ampart&__twitter_impression=true

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    • ferd

      psychotic: “delusions, that indicate impaired contact with reality”

      This describes the Trumptards, the Russiangatetards, the warmongertards, the safespacers, the MSMBCtards, the Foxtards, the I’m-a-victim-tards …in other words, the vast majority of Americans.

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    • s.k.

      There was some kind of mass hysteria that swept up even intelligent guys like the Fly during that period. It was surreal, and frightening. I think a lot of people have come to their senses, but is it enough for common sense and rationality to replace the grand paranoia?

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    • edge

      That’s cause he’s getting sued. He wasn’t delusional, he just took advantage of those who are.
      Anyway… he’s so yesterday. Good right-wingers fall in line with El Duce.

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  10. edge

    S.K.- Larry Kudlow’s economics are a fantasy. Most economic schools of thought are. They are little more that a political position masquerading as economic science.

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  11. Orson

    I construe what Larry said means we are at the top. Let’s see if we have trouble with earnings.

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