Even though this has nothing to do with trading (At least in derivatives), I have to point this out. The Fed a while back said it would pump over 1.2 trillion dollars into the system to "...Stabilize the Dollar's Inflation" basically devaluing the currency against others. Consumption growth over the projection of how the Fed treats its Real Data has rising concerns among others. The real data, if you look at it, tells you that not only is this going to slow down the economy, but destabilize the way other Economic Actors perceive it as well. When economic actors become sufficiently concerned -- whether justified or not -- a mild slowdown can easily become worse. When the economy is artificially marked up, that is, by human intervention, it shows a sign of weakness. This is just MY taking, and I am in no way an expert, just sharing my thoughts on this.
Overnight Repo Madness - The Taking
- Thread starter The Humble Bunch
- Start date
Finally someone with common sense. The market is artificially marked up. What most don't perceive however, is that the markets only exist in a digital realm, where one tweet can take an index up or down.
Sure you can call it that. When the markets start to selloff pretty sharply, then he cries wolf saying, "...trade deal 99% done" and the indexes are back up. This is what I mean when I say it is artificially marked up because there is lack of liquidity in the markets (14 btw). Just thought i'd share my opinion on this.