The stock market often turns a blind eye to the crumbling economy until it’s too late.
By removing emergency measures for banks and maintaining high rates, the Federal Reserve has set the stage for a looming crisis. There’s no safety net in sight; they’re deliberately steering us towards another crash.
The signs were there as early as September ’19 when the banking system began to falter, prompting the Fed to intervene. Yet, they only exacerbated the problem by pulling away support.
Now, in 2023, history seems to be repeating itself with similar tactics. Housing prices are plummeting at unprecedented rates, and the real estate market is flooded with surplus agents. Even electric vehicle dealerships are feeling the pinch, with prices dropping drastically and inventory piling up.
As global liquidity dwindles, the financial landscape grows more uncertain. And with central banks tightening their grip, the situation is only getting worse.
Jerome Powell’s recent remarks offer little solace, suggesting that interest rate cuts won’t be the saving grace for the faltering U.S. economy. It’s as if we’re sailing into a storm with no lifeline in sight.
Sources:
The stock market never cares about the deteriorating economy until something breaks.
By removing the emergency BTFP for banks, keeping rates high & continuing QT the Federal Reserve has intentionally created the environment for this to occur. t.co/sghFhhAbAu
— Financelot (@FinanceLancelot) March 30, 2024
There's no help coming. They're intentionally causing a crash again.t.co/2RhyVZh9fE
— Financelot (@FinanceLancelot) March 30, 2024
If the "housing analysts' couldn't see this coming.
How can you expect them to predict what comes next? t.co/xtQxUaSEp5
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) March 30, 2024
Ford has ramped down production of its EVs recently as they are quickly realizing there is no demand.
Inventory from 2023 has still not sold and its 3 months into 2024.
Is Tesla simply dominating the market?
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) March 30, 2024
Global central bank liquidity continues to decline.
It's also interesting to note this is the first time the Wilder's Moving Average has crossed the Bollinger Band Moving Average since March 2020. t.co/FF2i5O1qaA pic.twitter.com/mr3VK5rZdq
— Financelot (@FinanceLancelot) March 24, 2024
As PPP welfare to the rich winds down, Ferrari prices are collapsing. The SF90 is down $400,000 from peak. pic.twitter.com/ZGlGtQWu1V
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) March 30, 2024
JEROME POWELL SAYS INTEREST RATE CUTS WILL DO NOTHING FOR U.S. ECONOMY (Cryptopolitan)
Jerome Powell, the man in charge of the Federal Reserve, pretty much just told us that cutting interest rates right now is as useful as a screen door on a submarine. Man’s hanging tight,… pic.twitter.com/X2wNsAhxsN
— FXHedge (@Fxhedgers) March 30, 2024
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