"EVERYONE clamoring for rate cuts at this time... BAD IDEA!

Scataphagos

Scataphagos

Seems everyone wants to "avoid recession at all costs". (Market bulls want the rally to extend without the inconvenience of any "rebalance" from a recession.)

Well... recession isn't the worst evil. In fact, recessions are rejunvenating and refreshing... washing out the weak to be replaced by the strong.

Cutting rates here will stoke inflation and ingrain it into the economy for at least 10 years (like the '70s)... and that will be DEVASTATING for almost everybody.

Better to have a short-term recession rather than long-term inflation.
 
Last edited:
It would take a rate hike of 20% to make up for all the debt we've accumulated. And the thing is, the debt will never end, and there is no solution to it.

As far as I'm concerned it's better to have a debt of infinity than it is to go through a reccession.
 
Suggest you learn more of financial history.

1. There can be no "debt to infinity". Once the world loses confidence your country's debit, it and your currency plunges to ZERO... and almost everyone who holds their assets in that currency goes bankrupt.

2. Recession is like a broken leg... sharp pain and out of action for a couple of months, then recovery.... hopefully even better than before.

Prolonged inflation is like "stage 4 cancer"... where nearly everybody soon dies (financially).
 
Last edited:
Let's be real here


Recessions are actually good, it's a cycle that cleanses the system, but for some reason they take the word recession as the end of it all. There are economic cycles yet the last 40 years or so the fed has always tried to eliminate any down turn.....just let the system do its own thing, let the free markets for once work their magic. Enough of the fed intervention!!!
 
Seems around year 2000 recessions became something to avoid at all costs. I'm certain politics had nothing to do with that.
 
Arnie said:
Seems around year 2000 recessions became something to avoid at all costs. I'm certain politics had nothing to do with that.
More...

Years ago, recessions were merely "part of the economy" (a good part, IMV). But then one day, the Fed claimed, "we can manipulate interest rates/money and avoid recessions in the future". Isn't that good? Well, no... natural economic cycles were supplanted with perpetual inflation.. and that is NOT good! :(
 
The Fed has discovered a magic money tree. The magic money tree lets them avoid all recessions.

The fed will wait until the markets are deeply oversold. VIX well above 30. Then they will release something very Dovish and the ES will have a 200+ point rally that day.

Maybe the market will be down 200 points in the morning and will close up 200 points instead after they make the statement. So a 400 point move in one day.
 
S2007S said:
Let's be real here


Recessions are actually good, it's a cycle that cleanses the system, but for some reason they take the word recession as the end of it all. There are economic cycles yet the last 40 years or so the fed has always tried to eliminate any down turn.....just let the system do its own thing, let the free markets for once work their magic. Enough of the fed intervention!!!
More...


Imagine that in a parallel universe you were actually employable and enjoying this cleansing recession from your hovel after 18 months of being laid off. F*ck your armchair BS and moving averages.
 
Scataphagos said:
Suggest you learn more of financial history.

1. There can be no "debt to infinity". Once the world loses confidence your country's debit, it and your currency plunges to ZERO... and almost everyone who holds their assets in that currency goes bankrupt.

2. Recession is like a broken leg... sharp pain and out of action for a couple of months, then recovery.... hopefully even better than before.

Prolonged inflation is like "stage 4 cancer"... where nearly everybody soon dies (financially).
More...

In case you haven't already heard, countries have already lost confidence in our currency. That is why countries like Russia and China are already trying to make a new currency without us. And even if they still had confidence, then what's the limit we should avoid? To answer your question there is no limit, the whole market made by the FED was designed to fail. And that's exactly what we're doing
 
You must log in or register to reply here.
Back
Top