TedMerTed t1_je86n8i wrote on March 30, 2023 at 2:45 AM

Reply to comment by thawingSumTendies in BlackRock warns that investors are making a mistake by betting on the Fed to cut rates by uslvdslv

The Fed will cut rates only when they realize they have done too much. How will this be good for the stock market?

H0lland0ats t1_je8gyfh wrote on March 30, 2023 at 4:18 AM

This will come as a big surprise to you but the Feds mandate isn't "pump the stock market with cheap debt so WSB user TedMerTed can get free money".

The Feds only real job is manage inflation and employment from a macroeconomic level. Everything else should be coming from congress.

The vast majority of the "growth" the past decade has been finacialization. Companies have borrowed like never before in history to buy back shares, and take advantage of QE to its max. Very few companies are truly innovating and the ones that are, are doing it so incredibly inefficiently.

Bring back the evolutionary pressure of high rates. Last time they actually started making decent American cars again!

[deleted] t1_je8j8t0 wrote on March 30, 2023 at 4:41 AM

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GreedyGuard2660 t1_je8s9np wrote on March 30, 2023 at 6:28 AM

I don't know for a fact, but i suspect this is why IPOs often take a massive shit shortly after. Seed/angels are like the shoddy house flippers of the so called innovation world. This is why the GameStop thing got the police baton so quickly. They don't want it a lot of visibility on the extent to which human civilization is a pump and dump scheme

I once had the opportunity to meet a bunch of actual angel investors. They obviously weren't unintelligent, but they seemed like dunces. They barely, barely cared about the actual pitches. They cared about "we are a blabla bullshit buzzword company, here is an financial modeling excel template up & right." It was fucking eye opening.

[deleted] t1_jea5fie wrote on March 30, 2023 at 3:09 PM

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The_Other_Neo t1_je8yi6a wrote on March 30, 2023 at 7:55 AM

Maybe (but not holding my breath for this) the Fed has finally learned its lesson about low interest rates: A Fed Study Shows Loose Monetary Policy Leads to Disaster and Financial Crisis

>A Fed study shows the obvious. But Fed presidents never believe the few studies that ever make any sense.

rjsheine t1_je8pslg wrote on March 30, 2023 at 5:56 AM

Good for the stock market? Lmao that’s not the Fed’s job

TedMerTed t1_jea6c3m wrote on March 30, 2023 at 3:15 PM

The comment was towards people that think a fed pivot is a good thing. Not a comment as to the purpose of the Fed.

Duckboy_Flaccidpus t1_jeectdn wrote on March 31, 2023 at 12:19 PM

Isn't a terminal rate of 5.5% peanuts compared to what it's been historically the last 50 years? I see this as a stabalizing rate, no more free money circulating and should weed out non-robust businesses.