Fucking pieces of shit. Remind me why I need those catamites managing interest rates? They’ve fucked everything up as far as I can remember. These are the same neocon scum that appear to be managing the entire country, foolishly, without regard for anyone of anything but themselves.
The FOMC dove in again with a 25bps hike — because fuck you. The implication is no more hikes — but that’s a very shaky implication. One or two bad inflation numbers and the sons a bitches will be at it again — breaking all chains until their slaves are drowning in high interest bearing loans.
NEVERTHELESS, the market is viewing this as a positive. I waded into the number 132% leveraged long without hedges and have opted to ignore the initial fuck you candles until 3pm. The US 10yr is down 4bps, which is all you need to know.
Grasp this. The market is PRICING IN about 200bps of FOMC rate CUTS while the Fed is raising rates. This means that if the Fed doesn’t start cutting by Fall, the market is going to throw a tantrum and rates will soar.
WTI is hammered lower at -4.3%. The euro is up 0.6% vs the dollar just in time for my European vacation. The NASDAQ is +88 with breadth at a tricky 67%.
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Inflation is as evil if not worse. The trouble is, and why I agree, a large breakage of something will only cause the Fed to fail to normalize because they would politically need to cut heavily. That cutting again is the death spiral.