Here you can see that only in 2017 (The start of the Trump presidency) can you see the Fed raising rates at a very steep angle.
Posted on 02/05/2018 7:55:04 PM PST by Tolerance Sucks Rocks
Stocks raced sharply downward on Monday, with the Dow Jones Industrial Average falling by nearly 1,600, around 6 percent, before recovering to end with a decline of 1,179 points.
All the major indexes were down significantly. The S&P 500 fell by around 4 percent, the Nasdaq Composite fell by around 3.8 percent, and the broad Russell 2000 fell by around 2.9 percent.
Monday’s sell-off was not only deep but widespread, with all 11 sectors in the S&P 500 index posting declines. Financials, health-care, and energy sectors saw the steepest declines.
(Excerpt) Read more at breitbart.com ...
China selling US dollar-denominated stocks, then they reset their currency higher, rebuy dollars, and reinvest with a bigger share?
Just wondering...
The Fed kept interest rates near zero for all of Obama’s 8 years.
Then Trump gets elected and the Fed has raised around 5 times already.
Tell me the Fed doesn’t have a political agenda to crash the stock market, real estate market and then send the economy into recession to destroy Trump. These leftists do .
Audit and get rid of the Federal Reserve. It’s our only hope.
To be fair the Fed dropped rates to zero under Bush 2 and started increasing rates again in Dec. 2015.
https://www.thebalance.com/fed-funds-rate-history-highs-lows-3306135
http://www.fedprimerate.com/fedfundsrate/federal_funds_rate_history.htm
That said, rates should not have dropped that low in the 1st place and should have been raised sooner (and stop printing money!)
Over at CNBC, they’ve concluded that a large number of automated computer algorithms went off at the same time, causing large amounts of stock to be dump within a few minutes. Nobody was liquidated, and nobody put in an absurdly large sell order in error.
I don’t know about anyone else but boy do I trust CNBC. They have great hair, and awesome graphics and there’s no way they could ever lie. They aren’t like the rest of the media, nope, they ain’t even a little bit fake....
Here you can see that only in 2017 (The start of the Trump presidency) can you see the Fed raising rates at a very steep angle.
Ditto that.......
DOW futures are showing another $700+ drop on Tuesday.
Not exactly bouncing back now in the futures market. Down about 800 for open as I write.
Tell me, what has changed from the rosy outlook of as late as early last week?
It has been well known or some time interest rates need to go up eventually but isn’t this cooked into the outlook anyway?
I smell a rat. A whole lot of very angry desperate and evil rats who will stop at nothing to stop the man who is draining the sewers.
All I know is that muni bonds are raising their yields and lowering their premiums and selling closer to par or even slightly below.
The only rat is Mr Margin Call. He has but one thing to say: “You’ll have to put up another $300 million in cash, or cut back your position”. They don’t have the $300 million, so they sell.
Buying opportunity?
You are right about that but there are sparks that start the fire.
I hate speculative borrowing and deravatives and tax gimmicks. All cause instability.
****The only rat is Mr Margin Call****
Caused by what(or who) is what I think Sequoyah101 is getting at.
Now is not the time for fear.
That comes later.
Intrigue only begat intrigue but there are plenty of strange things going on. There are also very desperate, angry and evil people who like the sewer they live in. The economy and market are as much a state of mind as backed by facts. Maybe more.
Rumors of interference abounded in 2008 and 2011/2012. Nothing more was said or done about them.
Like I’ve said, call me nuts. Fine.
I blame Chuck for telling everyone it was obamas economy just last Friday
In the past few years, many speculative vehicles have been created that did not exist in the past. The triple-reverse ETF is now here! This allows institutional gamblers to place very large bets with no controls. When they’re caught short, watch out!
If the market is a powder keg ready to explode, it doesn’t take much to set it off. Interest rates go up 20 basis points, that’s not a big deal for people who borrow money or own bonds. However, it can set off a chain reaction in the world of derivatives trading. Nobody understood the risks that were being taken, as long as the trades made money.
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