Posted on 06/30/2022 11:03:34 AM PDT by lasereye
The Fed is raising interest rates aggressively in an attempt to tame raging inflation.
But according to legendary investor Rick Rule — former president and CEO of investment fund Sprott U.S. Holdings — things may not go as planned for America’s central bank.
“I think they’ll chicken out,” he told Stansberry Research earlier this month.
“If we had a period of real interest rates it would certainly cure inflation, but it wouldn't cure inflation until it did amazing damage to various balance sheets.”
This isn't the first time Rule has voiced concern about the economy’s ability to handle substantially higher interest rates.
In an interview with MoneyWise earlier this year, he said, “I do not believe that the broad equities market will handle multiple rate hikes.”
Rule doesn’t suggest bailing on stocks completely. Here’s a look at three things that the super investor still sees opportunities in 2022.
(Excerpt) Read more at finance.yahoo.com ...
You will own nothing and be happy.
W Bush’s 2008 crash accomplished much of that.
Well, except for the happy part. 😜
Lucky for me I was already broke then.
I didn’t have anything to lose.
There’s lots of lying balance sheets that could stand to have some amazing damage done to them.
Today is the end of the second quarter and the second consecutive quarter f a drop in th GDP groth rate. We will be declared to be in a formal recession.
The Fed knows of no other course but to raise interest rates, again
Stagnant economy, upward prices, uncurable economic turmoil.
An election might cure the market drop. It might improve the businessminds somewhat to see a glimmer at the end of a two year tunnel.
That comes from Commerce, Bureau of Economic Analysis. Release date for Q2 preliminary figures is the last week in July I think.
Thank you.
“it wouldn’t cure inflation until it did amazing damage to various balance sheets”
This is what their decisions are really about, protecting the “special” people and their balance sheets, versus stopping inflation from screwing over EVERY SINGLE PERSON in the country.
They said the same thing in the beginning of the Reagan era while Volker was chairman. He had to lick inflation by proving them wronng. The inflation remedy was painful for only a short time because the Carter/Reagan regulatory and tax reforms soon began to grow the economy back.
I am predicting two raises then a flip flop when chaos ensues.
Yes
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