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Maybe gold won’t go to the moon but this sets a sold floor. under it

Posted by Richard640 @ 10:18 on June 8, 2019  

Here’s My Prediction: If the Fed Doesn’t Cut Rates 3 or 4 Times by Dec 11, Markets Are Going to Crap

by • Jun 6, 2019• 85 Comments• Email to a friend

Stock market and corporate bond market are in la-la-land, pricing in an economic boom. They’re not seeing a rate-cut economy. So why would the Fed?

Granted, Wall Street always wants rate cuts, no matter what. But this is getting funny. The probability of three and even four rate cuts by December 11 are suddenly gaining the most favor in how the market are betting on 30-day Fed Fund futures. And the markets are now pricing in practically a zero-percent chance – currently a 2.2% chance up from a 0.8% chance yesterday – of no rate cut by December 11, the day of the Fed’s post-meeting announcement and press conference.

In other words, the market is betting there’s just a near-zero chance the Fed’s target for the federal funds rate will remain at the current range between 2.25% and 2.50% (chart via Investing.com):

Here’s My Prediction: If the Fed Doesn’t Cut Rates 3 or 4 Times by Dec 11, Markets Are Going to Crap

COMMENTS:

Kasadour
Jun 7, 2019 at 12:35 pm

You’re right. I’m incredulous just reading this. It’s absolutely the silliest and stupidest thing I’ve ever witnessed in the history of the central bank, centrally planned, financed, debt-monetized phony baloney economy. It’s embarrassing actually. The only thing left now is the bottom falling out of full faith and credit in, and total collapse of, the US finance system itself.

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J.M.Keynes
Jun 7, 2019 at 11:22 am

– The FED is going to cut (very) soon. The 3 month T-bill rate took a dive today (june 7, 2019).

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Gold is just..gold
Jun 7, 2019 at 3:50 am

Silver now is about the same as it was 10 years ago. Gold is about USD 200 above its 10 year old price. Pennies.

So tell me, where’s the price gonna go…..as the economy/currencies/d’ entire world goes to crap thanks to the PhD geniuses/criminals running the joint.

But what would I know as much smarter than I have said… “Gold is just….gold..”

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Max Power
Jun 6, 2019 at 9:42 pm

Some things really don’t change… recessions always start –

AFTER the yield curve has inverted and already begins to steepen

After consumer confidence has reached its normal cyclical peak

Once Corporate debt to GDP reaches a cycle peak based on historical peaks

Once House price growth starts plateauing

Unemployment rate stops decreasing and stabilizes at a low rate for a short time

…All these are obviously pointing to an upcoming downwards trend in the business cycle. While the economy is still robust today, these signs are all pointing to the party coming to an end in the next 6-12 months.

Only problem is that we are starting all this at a Fed funds rate of just 2.5% and an already bloated central bank balance sheet, oh and an already large fiscal deficit (certainly for what are considered ‘good’ times).

Watch out.

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.