Conversation

Rising interest rates is the new Black Swan. We saw this in Dec 2018/ Market sold off heavy until interest rates went back down. That might not happen this time.

9:04 PM · Mar 4, 2021Twitter Web App

Replying to

and

Can interest rates don't back down this time? Why?

Replying to

and

You mean they might not drop interest rates again this time, right?

Replying to

and

What happens if rates stay high for months on end? Does the fed do yield curve control? Or does the market just get used to higher rates and starts going back up?

Tradeagainsthemachine

Replying to

and

Powell said he was keeping them down they have no choice till inflation is too big to ignore that's when rates sky rocket

Replying to

and

That $AESE is a trooper

Replying to

and

This is different because in 2018 the Fed was raising rates. This time the bond market is doing it in advance because they do not believe Powell will control inflation. In 2016 the bond market did this to Yellen.

Replying to

and

Curve control seems to be the only way to get 10 year bond rates under control. This is a big problem, essentially nobody want to buy our long term debt.

Replying to

and

Steve Hanson: "Nailed him right in his mind!"

Replying to

and

Very Surprising to see a highly shorted stock like GME staying up today in a such a market. It should have crashed with that kind of short interest !!!

Replying to

This is exactly the point; as the cost of money rises few people can spend and inflation slows and/or retreats.