Independent thinking for complex markets and current events
by BoatSurfer600 The U.S. national debt spiked by $851 billion since the debt ceiling was suspended a month ago on June 3, and now hit $32.32 trillion. This is just an amazing freak show. Source: wolfstreet Stocks would do well too as liquidity would explode. This is probably the easiest scenario for governments but it …
https://wolfstreet.com/2023/06/01/feds-balance-sheet-plunged-by-348-billion-in-the-10-weeks-since-peak-bank-crisis-and-by-580-billion-since-qt-started/ “Total assets held by the Fed dropped by $50 billion in the week, to $8.38 trillion, down by $118 billion for the month and by $348 billion in the 10 weeks since peak-bank-crisis. Quantitative Tightening (QT) continued on track, and as the remaining bank liquidity support measures continued to unwind, according to the Fed’s …
“We need to keep raising rates until something breaks and inflation eases” <Something breaks> “Wait wait no, not that thing.” It’s very important that inflation is brought into check by poor people losing their jobs. Not rich people losing their deposits. NEW Banking Crisis In One Chart, Inflation=Fed Rate Hikes=Treasury/MBS Duration Increases=Bond Loss So, the Biden Administration …