RE:RE:RE:Cathie Wood is really pisssed at the FEDmarketsense wrote: Very good dialogue here again today. It should make anybody uncomfortable. It
certainly makes me but then I have been feeling that way since the Fed has stated
their intentions and keeps reinforcing their warnings on a consitent basis.
I am in total agreement with Cathies remarks. The Fed is going to commit a huge
mistake by overshooting. Using a cure that will not only kill the disease but kill the
patient has been my thesis all along. I think this is going to be an unmitigated disaster and a collosal mistake. I believe the fallout from their policy will echo the 08-09
financial crisis in severity. Foreclosures, bankrupticies, loan defaults and defaults
in the derrivative markets are the consequences of escalating Fed tightening.
Others will have differring opinions as to the severity of the damage that will result
of the Feds actions but I couldn't be more onside with Experience in having a decent
plan in place for your investments. Capital is precious and this is no time to be
dithering and delaying because you're not sure what to do. No matter what I think
of the Fed and its actions, they've made themselves crystal clear. I am moving to
more cash and will continue to exit positions.
The thing people need to remember about the US Fed is that it was set up in secrecy by the richest people in the world at that time. The reason it was set up was to protect their interests.
The proponents behind the establishment of the Federal Reserve essentially bankrolled the election of Woodrow Wilson with the proviso that he get the legislation through Congress which he did interestingly on December 23 1913...right before Christmas!!!
Why I highlighted the section of your post is that throughout the history of the Fed is has caused greater economic cycles than would have been the case if it didn't exist. Conspiracy theorists argue that the reason for this is that it is the rich who benefit from these greater amplitude cycles since they can increase their wealth by buying things on sale when the Fed creates a recession and sell assets at prices more than they are worth at market peaks. I leave to the people here to make their own assessments about this.
But what I have been saying in past posts is that whether or not you are conspiracy theorist, you can make money if you recognize what the Fed typically does and join the parade.