Trader Reminds You: There Are No Atheists In Foxholes
Read more from The Macro Tourist
It seems like a lot of hard-money-hawks were caught off guard by last month’s dovish shift by Powell. I have had more than a couple of conversations with different market participants who have expressed disbelief about how quickly Powell abandoned his tough “we-won’t-let-market-conditions-influence-our-monetary-decisions” policy. These Powell-disciples are rightfully feeling a little betrayed. After all, Powell promised he would tune the economy t
Excellent analysis and useful context to the drama that will play out this week. I am positioned for dovish pronouncements, but only in a small way. I won’t be in too much pain if this trade goes sour.
“Wrong. He folded like a lawn chair.” In Alaska we would say, “He folded like a Walmart tent on Denali.” Too bad because I was hoping for a return of at least 4% on my cash. Can someone explain to me what is so BAD with giving a bone to savers? Ya know, like in olden times wherein one lent their hard-earned cash expecting a return? And without a sniff of usury? Unlike credit card co’s? Unlike my bank that pays around 1% on savings in order to loan it back to me at 5% (all dependent on loan quality, etc.)? Instead of funding the large hogs to basically do what they want with nearly free money? Yes, yes I know that it is not entirely free but rather closer to free than I’ll ever see. Onward and upward (?) we go, where she stops we’ll never know.
That one has to play with stocks and other creative instruments to see a return on savings is a sickness.
The only bad thing about letting savers earn a return is that too many companies and people have too much debt that needs to be frequently renewed at market rates and they went out as far on the borrowing branch as they could during ZIRP. Now any raise in interest rates threatens to wipe them all out. There is no way back without pain and the FED doesn’t want to be the one holding the bag when the pain hits. Let Trump blow up the global economy and tank the markets and wipe them out then the FED can raise rates with impunity. That seems to be the thought anyway.
Guess i should have bought a million call options deep in the money expiring at end of the year. I think yesterday’s low right before market close will be the last low of 2018..Santa Claus rally!