The potential for panic [none yet] is huge-Can a few keystrokes chez the NY FED trade desk save the day?

OASIS FORUM Post by the Golden Rule. GoldTent Oasis is not responsible for content or accuracy of posts. DYODD.

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The potential for panic [none yet] is huge-Can a few keystrokes chez the NY FED trade desk save the day?

Posted by Richard640 @ 4:59 on January 27, 2020

The FED beter get its butt in gear before this house of cards starts crashing…nothing would surprise me today–in either direction…

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Submitted by Eric Peters, CIO of One River Asset Management=-The instability inherent in one extremity can easily swing to the opposite. And such a shift is not merely possible, or even likely, it is inevitable.

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““From the S&P 500 peak in 1972 to the 1974 trough, a 60:40 stock bond portfolio lost 60% of its nominal value.” In real terms, it lost 70%. There was no V-shaped recovery that quickly returned portfolios new highs.

“Are we on the cusp of economic regime change and wealth destruction not seen since those dramatic years in the 1970s?” he asked. In the distance, Britain’s politicians readied their plans for an impressive fiscal stimulus. The Americans fought over how to best expand their current 4.5% deficit (with unemployment at levels last seen in the late-1960s and with the economy running above capacity). Will Republicans introduce new tax cuts and infrastructure spending? Or will Democrats expand entitlements on a scale not seen since the 1960s Great Society programs? Or launch a Green New Deal? Both?

“It does not take a wild imagination to see where this comes from – a shift in regime with government spending directly financed by central banks, secure in the belief that their deflationary machine will grant them license,” he said. “Today the climate is deflationary to be sure. But the machine is being dismantled. The instability inherent in one extremity can easily swing to the opposite. And such a shift is not merely possible, or even likely, it is inevitable.”

OASIS FORUM Post by the Golden Rule. GoldTent Oasis is not responsible for content or accuracy of posts. DYODD.

The potential for panic [none yet] is huge-Can a few keystrokes chez the NY FED trade desk save the day?

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