Fed will aggressively dial back its monthly bond buying, sees three rate hikes next year

Discussion in 'Economics' started by ipatent, Dec 15, 2021.

  1. Nine_Ender

    Nine_Ender

    And why are you 'containing' inflation ? What's the damage at this point ? A good chunk of it is due to scarcity of assets/services and long overdue wage inflation.
     
    #11     Dec 15, 2021
  2. qlai

    qlai

    Sounds like everyone is concerned with run-away inflation, no? Hyper-inflation hits poor people (people who don’t own assets) the most, so politicians don’t like it in the headlines.
     
    #12     Dec 15, 2021
  3. ipatent

    ipatent

    & retirees living off fixed income.
     
    #13     Dec 15, 2021
    qlai likes this.
  4. Nine_Ender

    Nine_Ender

    Are you proposing Japan's model for the economy ? A nation of savers ? Hell, even they have been trying to create inflation for decades. Suddenly it's a bad thing after a few months of success ? Canada is at 4.8% oh no my life is over however will I survive this inflation ( oh wait a second, I somehow survived the 70s and 80s in Canada ).
     
    #14     Dec 15, 2021
  5. Overnight

    Overnight

    Well, that's because Eggo waffles were introduced to the US in like 1973 or something. By the time the 1980s rolled around, the US needed a fuckton of Canadian maple syrup to saturate the Eggos.

    Oh, and the US loved Wayne Gretzky. He was a celebrity here for like 20 years starting in the late 1970s. I think I've got Canada figured out, eh? Heheh!
     
    #15     Dec 15, 2021
  6. JSOP

    JSOP

    Yes, by increasing productivity so everybody needs to go back to work and work 2 to 3X harder than before, then there would be no inflation as long as the Fed doesn't print more paper.
     
    #16     Dec 15, 2021
    qlai likes this.
  7. JSOP

    JSOP

    Japan's productivity is extremely high also. People there work 12 hours a day and six days a week. Not seeing that happening here though
     
    #17     Dec 15, 2021
  8. Peter8519

    Peter8519

    Maybe this is my personal bias, I "think" the Fed is doing whatever it can to prop up the stock market. Greenspan put. Bernanke put. Powell put ?
     
    #18     Dec 16, 2021
  9. qlai

    qlai

    I agree but I think they will roll the put deeper OTM. How deep? That’s what I am waiting to find out.
     
    #19     Dec 16, 2021
  10. Nine_Ender

    Nine_Ender

    It won't help your trading to believe this. Markets are up on huge earnings growth which is only indirectly related to anything the Fed is doing. The US Fed is "propping up" the economy until Covid no longer matters. That dynamic is getting slowly rolled back now. Best thing to do is invest in corps that may do well with inflation and growing economy. High earners in areas like Oil and Gold seem good, the really big IT firms dominating their markets, banks, maybe health care. Use the dips to get a nice price.

    The problem with trading forums is they are dominated by short side gurus many whom have no idea how to research value. Look at 2009-2014 on here ask yourself how much these guys ( the S2007S and Ken Calhouns ) would have helped in formulating a solid investment strategy.
     
    #20     Dec 16, 2021