The Great Unwinding

[Eagler]

Market goes up on news at 2pm that should result in massive selling...

If they dont state it's going to be at least .75 the next two raises they are not serious about taming inflation imo

Eagler

[CptTrips]

If they dont state it's going to be at least .75 the next two raises they are not serious about taming inflation imo

Or stay at 50 basis and accelerate QT.  Same effect.  They should do both.

If fact, Fed should drop some Shock-and-Awe on the market and raise 100 basis AND announce QT acceleration.  They are definitely giving off the vibe of being way behind the power curve still and too timid in their approach.  Like in the movies when they slap someone who is getting hysterical.

[Eagler]

Or you have to shoot the dog as it has rabies...

Eagler

[CptTrips]

Great writing great acting.

[Brooke]

Great writing great acting.

I forgot how good that movie is and what a great cast it has.

[Brooke]

Also brings to mind an excellent quote that might once again be especially relevant to our nation's financial situation:

"It is difficult to get a man to understand something when his salary depends upon his not understanding it." -- Upton Sinclair

When it's all said and done, will people even remember the politicians who were proponents of MMT?  Will they remember that Keynsianism has dangers akin to financial meth?  Probably not.

[CptTrips]

I forgot how good that movie is and what a great cast it has.

 

I can see why it wasn't a big hit with the general public that thinks every movie should be based on a Marvel comic, but I agree it's one of those hidden gems.  It might be too understated for a lot of people, but underneath that silence is a cauldron of tension and fear.  There was artistic license taken I'm sure, but it is probably an amazingly close rendering of what it must have been like behind closed doors on Wall Street when things started to capsize.   

[zack1234]

Great writing great acting.

A American using a fictional film to gain a world view.

Mention a book and there is hysterics.

Very odd

[Arlo]

A American using a fictional film to gain a world view.

Mention a book and there is hysterics.

Very odd

The only one going hysterical over books in this forum is you (demanding everyone else read books, demanding to know what books they read, refusing to believe they read, refusing to prove you do). 

[CptTrips]

This scene nails it.

[Eagler]

.75 better than .5 not as strong as 1.00 IMO.

I guess they want to continue to chase their tails..instead of having the guts to act strongly and quickly deal with their self created mess.

Eagler

[Eagler]

As the market is now 500 points higher...actually more as it was negative...is confirmation to me he didn't raise it enough..

No guts..

Eagler

[Brooke]

As the market is now 500 points higher...actually more as it was negative...is confirmation to me he didn't raise it enough..

No guts..

Eagler

I believe that the Fed is intentionally working toward a 1/3 to 1/2 reduction in stock, bond, and real-estate values and an decrease in employment rate.

But they need their actions to stay within the range of what is considered typical.  It is OK if the process takes a year or two.  They can keep raising interest rates until it is accomplished.

That way, after the markets have crashed, they can say, "Well, we were doing what everyone knows was the usual and prudent action."

[Brooke]

A American using a fictional film to gain a world view.

Mention a book and there is hysterics.

Very odd

Some good books for today:

The Mandibles, by Shriver (who lives in UK but is American  )
That Hideous Strength, by C. S. Lewis
This Time Is Different: Eight Centuries of Financial Folly, by Reinhart and Rogoff
The Big Short: Inside the Doomsday Machine, by Lewis (a different Lewis)
Boomerang: Travels in the New Third World, by Lewis
Why Nations Fail: The Origins of Power, Prosperity, and Poverty, by Acemoglu and Robinson
The History of the Decline and Fall of the Roman Empire, by Gibbon
Atlas Shrugged, by Rand

[CptTrips]

The Big Short: Inside the Doomsday Machine, by Lewis (a different Lewis)

Flash Boys by Lewis was also illuminating.

I also enjoyed Griftopia by Taibbi.

Trivia: my favorite Taibbi quote:

The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.

Gives you a hint of his writing style.