@biancoresearch would u rather it looks like 2022? i dont get it, why do you want an outright crash before lowering rates? why not do it proactively instead of reactively!?

@zugzwangE4 Half the country has little to no assets; they rent and live paycheck to paycheck. The risk is mooning financial markets, creating a massive wealth-driven infaltion boom that hurts them.

@biancoresearch If everything is green, there’s no fire to douse. The only cut triggers are labor cracking or funding stress...think jobless claims jump + spreads/short-term rates blow out.... absent that/ hold line.

@Leslie1256815 If the labor market is struggling, would that depress some/most financial markets? Since they are not depressed, the markets must not see the labor market as a problem.

@biancoresearch Excessive financialization translates into a detachment from the real economy; even if the financial figures are positive, they are hiding many problems of the economic pillars. They have created a monster never before recorded in the history of Humanity.

@dtsr52pw If true, cutting rates won't help those hiding economic problems. But the risk is high that rate cuts overheat the "financial channel," worsening inequality and potentially feeding a wealth-driven inflationary rise.

@biancoresearch The overnight interbank lending market.

@FinalSettler What is the problem, and how does cutting rates fix this?

@biancoresearch Uh oh

@biancoresearch the financial channel that needs help is the fed deficit. inflation is necessary to reduce the debt by devaluation and the illusion of a higher gdp that inflated dollars bring. to default is not an option, and the usa ain't "growing" out of it.

@biancoresearch The federal interest payments on the debt.

@biancoresearch If you see the world only through the public market, there is little to fix. Under the veneer of a few thousand companies are the hundreds of thousands small and medium private businesses, and the economy seems a bit more tenuous at that level.

@biancoresearch

@biancoresearch The Fed is unwittingly and dimwittedly serving its purpose of hastening the eventual destruction of functionally useless financial capital that is so obviously in huge oversupply.

@biancoresearch 1. Private credit and the musical chairs of an overcollateralized system that is hiding out there due to lack of regulations and oversight. 2. Signs of decreasing US consumption spending ( like 2006-2008, except MBS/stripper homes has now switched to all collateral/avg Joe)

@biancoresearch Their debt problem

@biancoresearch Er ..... the entire banking system & funding ..... First Brand .... a multitude of Cockroach's ..... Not to mention the minor fact that the debt mountain needs refinancing at much, much lower levels. Batter up

@biancoresearch The problem it’s trying to fix is the government can’t pay its debts and need to keep devaluing the dollar. Needs access to lower rates, cheaper money.

@biancoresearch There are two economies in this country The halves and the halves nots the green is all driven by the top 10%. The halves The rest of the country is flat on its back. I think we need to change or add more metrics to pick up the halves not

@biancoresearch The goal seems to be the intentional weakening of the dollar, or at least keeping pace with other central banks weakening of their own currencies, right?

@biancoresearch The market is telling us the Fed is 50bp high.

@biancoresearch Exactly. The data shows the economy is generally running a bit hot on account of excess liquidity in the system. Yet the Fed keeps talking to itself in the halls of the Eccles building, echoing is talk about tariffs as a one-time pass through. The Fed is burying the real issue.

@biancoresearch this is the problem when you miss page1 and go straight to page 3. In page 1 you will encounter the trade-off that the Fed faces - inflation and unemployment. Now think of the K shape in the recovery process with AI driven investment booming away and the job creating SME still

@biancoresearch The FED and the gov need to stop their push for centralization of $ via bank formation restrictions and start allowing small banks to form and push the liquidity to local/community banks where it can be put to best use...similar to China and Japan according to @scientificecon

@biancoresearch Wont it be funny when gold inevitably crashes, and the punters bring the stock market down on margin calls

@biancoresearch The actual economy? Lol risk on and off assets are not the economy

@biancoresearch The one the banks are hiding.

@biancoresearch Or, what do they know that the masses don’t?

@biancoresearch Agree for most part, however isn't housing missing here? or are you saying REITs cover that?

@biancoresearch Banks apparently.

@biancoresearch The 'out of control' federal spending channel?

@biancoresearch The only thing that I can come up with is "The Budget".

@biancoresearch I must study Politicks and War that my sons may have liberty to study Mathematicks and Philosophy….(and so their sons have the liberty make investments) - Adams