This is not the end. These losses are comparatively small and seem to be isolated to a few banks lol one hedge fund with dodgy investments in media and china tech isn't going to roil the market
I'm more concerned about the bond market and increasing yield on the 10 year. SLR program being allowed to expire at months end may trigger a bit of a selloff in treasuries. We'll see.
That's why I'm keeping an eye on it. Governments are going into tremendous amounts of debt. The only reasonable way to pay it off would be to allow for inflation. Hedge funds dumped $49B of treasuries on the market in Jan. If nobody wants to buy government debt in fear of inflation then Fed would be forced to offer a higher rate. This would have a domino effect across markets. Corporate bonds would also have to offer higher rates and risk rolling over their debt. Only difference is the Fed can print money to pay off the bond whereas Corps have to actually make money.
Rate hike should curtail the inflation to some degree. The end of free money will be a short term hit on equities but feel it needs to happen for long term stability.
There is so much bad (and upvoted) advice here that it is alarming. I want my MAGA frens to get rich and be able to influence the economy with what they spend on. Some advice here, if taken, is going to end up with frens living on the street!
The doomers here are unprecedented.
This is not the end. These losses are comparatively small and seem to be isolated to a few banks lol one hedge fund with dodgy investments in media and china tech isn't going to roil the market
The fuck are y'all smoking?
I'm more concerned about the bond market and increasing yield on the 10 year. SLR program being allowed to expire at months end may trigger a bit of a selloff in treasuries. We'll see.
I think the yields need to increase to force feds hand to normalize rates
But I know next to nothing about the bond market other than santelli screaming about em
That's why I'm keeping an eye on it. Governments are going into tremendous amounts of debt. The only reasonable way to pay it off would be to allow for inflation. Hedge funds dumped $49B of treasuries on the market in Jan. If nobody wants to buy government debt in fear of inflation then Fed would be forced to offer a higher rate. This would have a domino effect across markets. Corporate bonds would also have to offer higher rates and risk rolling over their debt. Only difference is the Fed can print money to pay off the bond whereas Corps have to actually make money.
Hence the rotation from growth to value stonks
Rate hike should curtail the inflation to some degree. The end of free money will be a short term hit on equities but feel it needs to happen for long term stability.
The whole wait and see is a bit much tho
There is so much bad (and upvoted) advice here that it is alarming. I want my MAGA frens to get rich and be able to influence the economy with what they spend on. Some advice here, if taken, is going to end up with frens living on the street!