Submitted by [deleted] t3_10qahk3 in wallstreetbets
[deleted]
Submitted by [deleted] t3_10qahk3 in wallstreetbets
[deleted]
So calls or puts? What is wrong with you people?
I can’t read just tell me what to buy
Wtf is a game of chicken of mouse...a game of cat and mouse... A game of chicken...maybe I'm just too regarded
It’s a game where one side (the chicken) is running towards the mouse, but the mouse doesn’t give a fuck because chickens are not their natural predators.
So like… basically the market will do whatever the fuck it wants, while the fed is being hawkish
You got it.
The Federal Reserve has broadcasted a .25 increase tomorrow. This is the 6th hike (in less a year) and the issues now are both financial and philosophical.
The Federal Reserve sent in trillions into the economy in a short period of time and the result was inflation (that could not be controlled with simple policy statements). It's real. It's pernicious. It's not transitory.
The act of fixing this cancer will not be a quick dose of chemotherapy. You cannot raise rates (in a short period of time) and hope to correct monetary policy decisions that took decades to install. Inflation is a deadly virus of price appreciation that does not give a shit about your timeline for opening up the liquidity again.
No easy money by December. Nope. It's just not going to happen. The marketplace has yet to realize this truth. Shoving a few rate increases down the throat of the economy hoping to make things "all better" is not a realistic policy solution.
The acceptance of what's ahead has not been priced into assets. The next rate hike is going to put people's jobs at risk (if they continue to hold onto the pleasant fiction that things are going back to normal by the end of the year).
I think a 25 basis will be expected tomorrow but he will also say he will not rule out 50 or 75 if they don't see improvement which will cause a huge drop tomorrow.
I don’t know what Powell will do but one thing never fails - tomorrow CNBC Steve Liesman will ask Powell about the market rally this year and how that affects inflation. Of course Powell will talk tough after hearing this. This guy has pulled this the last few meetings.
>It seems like you're pretty confident that the Fed is going to stay hawkish, at least in their communications. Do you think this is the right move for them, given that inflation is still relatively low? Or do you think they're just trying to keep markets from getting too far ahead of themselves?
[deleted]
You're replying to a bot, smart guy
Ladies and gentlemen, we got him
The question you need to answer is this:
Does Jpow want to eliminate the fed put, or not.
Depending on what you believe he wants to do, the market will tank or not.
If he is determined to get rid of the fed put, the markets are in for a lot of pain.
If not, then the markets have read him correctly.
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^^Discord ^^BanBets ^^VoteBot ^^FAQ ^^Leaderboard ^^- ^^Keep_VM_Alive >TL;DR: Expect Powell to go full sadist and communicate as hawkish as possible while simultaneously announcing a rate increase.
prometheus2508 t1_j6ou36y wrote
JPOW is so fucked. He has to keep raising rates, cause as soon as he stops the market is going to rip again