8 upvotes, 2 direct replies (showing 2)
View submission: Rate cut’s accelerating = 🌈🐻
If they are that's not going to work how they think it is. Stocks are going to be much much lower by the time that happens and lower rates in an obvious recession isn't necessarily going to make them go up.
But they are clearly making policy on the fly and don't seem to know what they're doing tomorrow never mind have a long term plan.
Besides which everything they're doing is inflationary which means that rates almost certainly won't be cut unless we're in a full blown depression.
HOWEVER... Next year 🥭 gets to appoint a new fed chair and you can be 110% sure he will be loyalist lackey - probably not even an economist - who will do whatever he's told.
So you might well see rate cuts at completely inappropriate times that supercharge inflation while the economy is fading (Stagflation). Furthermore in their desperation to not admit fault they may do something really batshit like doing QE to fund the deficit and even maybe something superduper batshit like raising rates to control inflation while simultaneously QEing to fund the deficit and cutting taxes to encourage growth. The USD would obviously completely collapse at this point and yields would soar, leading to some kind of financial singularity resulting in who knows what.
Comment by DickFineman73 at 08/03/2025 at 19:43 UTC
5 upvotes, 0 direct replies
Trump has already suggested that some of our debts are fraudulent as well.
https://www.reuters.com/markets/us/trump-says-us-might-have-less-debt-than-thought-2025-02-09/
It would be 100% in keeping with how he operates his businesses for him to just say "nope, we don't have these debts - fake news."
Just like the financial singularity you mentioned, I don't think anyone has any fucking idea what would happen if those shenanigans got pulled.
Comment by throwawayredtest at 08/03/2025 at 19:13 UTC
2 upvotes, 0 direct replies
Thank you! I was looking for something along these lines in terms of explanation.