RE:RE:Summer rally being erasedA depression? I don't see that happening. Inflation and recessions are bad, but deflation and depression are worse... the mother of all disasters. The FED fought to dig us out from a near miss depression. I don't believe they send us into one now.
mouserman wrote: I know they believe jacking interest rates will rein in inflation, as if the 50 trillion $ created (worldwide) to fight the Coronavirus ( and the war in Ukraine) didnt have an effect on inflation. We are headed for depression and commodities wont fall that much until expanding , growing economies grind to a halt. AND THAT is never a good thing.
flamingogold wrote: DFN hanging in there but for how long. The FED's manadate was overly hawkish last Friday... rates are going up until inflation comes down and they are prepared to accept the pain that will ensue.
"These are the unfortunate costs of reducing inflation," Powell said. "But a failure to restore price stability would mean far greater pain."
Covid changed the work ethic with so much free money sprinkled into so many pockets, screwing up the supply chain and jacking inflation. JP is determined to change that by slowing the economy, increasing unemployment, slowing wage growth and price inflation overall.
The summer rally is slowly being erased but I expect volatility to pick up in the next few weeks and retest the June lows.