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RE: LeoThread 2024-08-24 22:01

in LeoFinance3 months ago

Keep in mind the Fed is always behind what is happening.

Since they now are deciding they have to cut because of a fading labor market, it shows that things are going to get bad quickly.

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labor market will get bad right? Stonks and crypto up up up?

Markets do not reflect the economy. That is the misconception most make.

Markets are about capital flow so there are other factors. People look at earnings, which in stocks is mostly US based. However, the global capital flow changes.

Do you think people want their money in China or the EU right now. The flight out of there has been taking place for a number of years.

I know markets don’t reflect the economy (at least not the real economy, it feels like there are two world economies, the one of work and goods and services and the one of investment), I assume it’s money printing and how interest rates influence fractional reserve banking that decides how markets are doing.

I am still not sure if I know what I’m talking about 😆

Yeah there is a lot of misinformation out there about the Fed and money. It actually doesnt do it anymore.

Another thing about markets, the push higher is being driven by a handful of companies, mostly tech. It is widespread moves being made.

The Fed is behind (as in responsible) for what's happening; it's also behind as in reacting to lagging indicators. It was supposedly created to prevent "panics," yet it's behind the Great Depression & all other financial crises since 1913.

To have caused it implies they have power which they do not. The reality is the Fed is nothing more than a propaganda organization. That is why their monetary policy is ineffective.

People think they can change the business cycle.