Way ugly. Lots of folks believe in “don’t fight the fed,” but I think the fed might be out of horses now. I dunno.
Well, here’s one thought to ponder:
Since the Fed has been using the funds/discount rate as their primary liquidity tactic in the last couple of meeting periods, we have only 300 basis points left to play with.
And we have not started the wave of option-ARM loan resets yet.
There’s a veritable mountain of poo out there waiting to be launched at fan blades...