Is The Fed Listening? | ITK with Cathie Wood

What "mess" are you speaking of? The only mess here is red hot inflation.

schizo said:
Had Powell started raising rates earlier as in late-2020, we wouldn't be in this mess. The entire team at FOMC live in an ivory tower. They know nothing! (to borrow Jim Cramer's 2008 rant)
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Hindsight is bliss...

nitrene said:
With the collapse of a prominent SF Bay Area bank (SIVB) & the Fed just ignoring it says to me they will plow ahead with their inflation fighting agenda. I agree that Powell seems like he doesn't know what he's doing. He should have started raising rates 6 months after the vaccines hit the street.

There will be more blowups in the banking system especially the regional banks since they are now in a credit quandary -- its not worth it anymore to make loans with rising rates. Its the S&L's crisis in the making all over again. Deposits have become very expensive and that could create further runs on these banks. Crypto is not systemic but Regional Bank collapses would be.
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I forget who it was... Siegel or someone on CNBC who stated those in control will just blindly keep jacking up the rates until they break something. Well... seems we've got to that point.

I can tell you the REIT sector is getting wrekt. I've been going through the financial statements and we've returned back to that key word 'capital recycling' all over the landscape. Which is a PC-Term for (the CEO fucked up, now we need to sell off assets and crystalize losses). Basically, REITs in Canada can not pay up their rolling-debts because of the high rates and long duration of the rising interest rates. So the fire-sales of assets now have to continue at a worse pace just to meet basic obligations. This is basically wealth-destruction to the unit-holders.

Considering Canada did not drop interest rates as low as the US, and has acted quicker to get things under control, (and STILL can't get rid of inflation)... this is not a good sign for the US.

Good luck boys!
 
Fed is in checkmate . A mkt up for 11 straight yrs should have corrected 50% plus with all these rate hikes . Inflation never fell because asset prices ( stocks and housing ) hardly dropped . Stocks haven’t even dropped to their level on Jan 1 2022 . To stop inflation people had to feel large drops in paper wealth to stop spending . They never did . If the fed stops raising and asset prices run again inflation will be hell and destroy all .
 
The reason why asset prices hardly dropped is because the fed balance sheet has hardly been reduced...

SammyJ said:
Fed is in checkmate . A mkt up for 11 straight yrs should have corrected 50% plus with all these rate hikes . Inflation never fell because asset prices ( stocks and housing ) hardly dropped . Stocks haven’t even dropped to their level on Jan 1 2022 . To stop inflation people had to feel large drops in paper wealth to stop spending . They never did . If the fed stops raising and asset prices run again inflation will be hell and destroy all .
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SunTrader said:
Well if Bitcoin is in anyway a risk-on/off indication (?) it's moved $1000 higher in the last couple of hours.
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ITs not+ another reason why the buying bank did not want the crypto cr*p of the losing CA bank........
BUt some of the regional banks blame deposit loss on ''big banks'' LOL More likely\ so many regional banks paid savers such low rates past 52 weeks.
And IBKR + SCHW paid better bank rates +money market rates before SVB blow up.
I just read in the local newspaper, county exec paid a penalty on $5 million of cd money/ said it was paying 00.25-oo.50%. And came out better paying penalty.................Thanks
 
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