RE:RE:RE:OPEC+ discussion for 1,5 Million or more ...masfortuna wrote: jleer42 wrote: Thanks Red. Regarding the Fed, they don't just want a technical recession they actually want GDP declines and higher unemployment. They were so late recognizing that the inflation wasn't "transitory" I can only see them continuing to be behind and overshooting with interest rate rises.
For OPEC it will also be interesting to see what messaging they include with their quota cuts. I anticipate something of a politely phrased Screw with us at your own risk
And that is the main concern everyone has. They were late in responding, and then they used the term "transitory". Now it's no longer transitory and inflation is the main enemy they want to eliminate even at the risk of destroying the economy. So far the markets haven't bought into this narrative completely as exemplified by today's market activity. I don't think many trust the FED at this point.
It seems the fed wants to see peoples personal wealth drop , some screwed up theory that if you put everyone in the poor house then that will solve your demand problem . The problem is when an irresisable force meets an immovable object something always breaks . Greenspan did this back in 2000 , kept increasing interest rates saying they were "tapping the breaks" until they eventually hurled the market through the windshield . It was a much different economy then , certainly wasn't firing on all 8 cylinders with a tank full of cheap money . The US economy is kee[ing the rest of the world going , the world won't let Powell kill the golden goose .