I raised this in the unlikely chance that someone on this board would have something constructive to say about what has been an unprecedented move. Enter you, a lefty, with the typical attempt to be disruptive. You are probably a member of Antifa or BLM or some other group bent on chaos.
Like so many other lefties here you have a reading comprehension problem. So let me add what I was thinking to clarify for you:
- I am stunned that yields are this high given that these values are unsustainable without cuts in government spending, and I expect no capacity for this government to cut spending. Remember the ten year is what the market expects over a decade. Here the Congress is an enemy of the Federal Reserve's inflation mandate. Congressional spending will tank the private sector economy.
- BOTH interest rates and falling earnings will tank stocks. Traders know this, hence all the Shorts and Puts.
- What doesn't make sense to me is to see an index that is more interest rate sensitive -- the NASDAQ -- fall less than a more stable index -- the DOW. That should reverse unless there is a large contingent of investors that do not believe these interest rates will hold.
As for being condescending, the mess created by this government and its central bank is deserving of criticism. When the dust settles there will be calls to eliminate the Fed. It will be shown that they did nothing but cause damage on top of reckless spending on the fiscal side.
The Federal Reserve has been seriously corrupting free market enterprise since 2008. It stepped in to bail out really bad government and banking policies that came beforehand. Both are culpable.
Study what happened in 1968 through the tax cuts of the early 80s if you want to preserve your savings. It's the same story except this time there is a massive debt headwind. Some day you may thank me.
