Steve defended the Fed, Rick shit on the Fed. I think Rick was right though. It was premature for Powell to signal rate cuts in Sep, then repeatedly iterate it until a few weeks ago. Now it's weird, no cut --> no credibility, cut --> inflation will be through the roof
that is a naive understanding....e.g.: why did the market price in 6 cuts if they listen to the hawish fed? The market doesn't really listen to the fed is what the other guy is saying...
Markets move along with business cycle, what it prices is whether its ahead or behind the "trajectory". Rate cuts or hot economy is the same thing (bull market), just different beneficiaries. Strong economy is bad for stocks
I said this in December, the jobs market is way to hot to ever talk about rate cuts, and there won't be any in 2024. Every month it is 200k-300k jobs being created and wages rising faster than inflation. There is no reason to cut rates in that environment..
Look, what is the monetary system? It is a global structure to facilitate the global economy. We buy goods from around the world, and facilitate global economy by allowing other nations to, manufacture or produce, resources or goods, for trade and in exchange for consumer demand here in the USA and the developed world, we have a system in place here that the world is playing along with. How much the FED has on the balance sheet is just a balance with inflation in our domestic economy. Its just a numbers game, 200 trillion is no different than 1 trillion. However if we remove the American consumer buying power then we break our end of the global order, we have to make sure Americans can consume to maintain the global economic order on our end of the deal. If someone else breaks the system like China stops trading with the world then so be it we will deal with it and even create a new economic order if need be but we have to maintain our end of the system as it stands today.
Fed says maybe 6 rate cuts, market soars. Now we may get none - market does not correct. You can see it with your own eyes. 2007 all over again, different facts, but same result. I dislike the wall street baloney.
SUMMARY: -- Fed's Words and the Market -- Steve - Believes the Fed's statements significantly influence the market. Rick - Argues the market is swayed by a wider array of factors, not solely the Fed's words. -- How the Market Reacts to the Fed -- Steve - Points out that unclear communication from the Fed can lead to incorrect market predictions. Rick - Maintains that the market forms its predictions based on its own set of expectations, not just on the Fed's communications. -- Fed's Influence on Market Expectations -- Steve - Stresses the importance of the Fed's clear communication for market stability. Rick - Doubts the Fed's ability to effectively shape market expectations. -- Understanding Market Moves -- Steve - Is concerned about the possibility of the market misinterpreting the Fed. Rick - Believes market movements are influenced by a variety of factors, not just the Fed's commentary.
What we have here, is a failure to communicate!
That guy Rick. Glad he wasnt my dad.
one's talking about short term market price action while the other is talking about long term trajectory.
Wow this is an all out fight!!
And I don't understand the point that either is making.
Steve defended the Fed, Rick shit on the Fed. I think Rick was right though. It was premature for Powell to signal rate cuts in Sep, then repeatedly iterate it until a few weeks ago.
Now it's weird, no cut --> no credibility, cut --> inflation will be through the roof
@@acornsucks2111 same here. Lol
The bald guy sounds more accurate the fed choices do affect the market.
that is a naive understanding....e.g.: why did the market price in 6 cuts if they listen to the hawish fed? The market doesn't really listen to the fed is what the other guy is saying...
Santeli is defending stability.
Too bad there is none.
All they can do - its all good, all is well all is well.
Rick should be fired!!
The guy is a goon
We are in deep trouble. That’s what I know.
Correct.
Markets move along with business cycle, what it prices is whether its ahead or behind the "trajectory". Rate cuts or hot economy is the same thing (bull market), just different beneficiaries. Strong economy is bad for stocks
I said this in December, the jobs market is way to hot to ever talk about rate cuts, and there won't be any in 2024. Every month it is 200k-300k jobs being created and wages rising faster than inflation. There is no reason to cut rates in that environment..
Look, what is the monetary system? It is a global structure to facilitate the global economy. We buy goods from around the world, and facilitate global economy by allowing other nations to, manufacture or produce, resources or goods, for trade and in exchange for consumer demand here in the USA and the developed world, we have a system in place here that the world is playing along with. How much the FED has on the balance sheet is just a balance with inflation in our domestic economy. Its just a numbers game, 200 trillion is no different than 1 trillion. However if we remove the American consumer buying power then we break our end of the global order, we have to make sure Americans can consume to maintain the global economic order on our end of the deal. If someone else breaks the system like China stops trading with the world then so be it we will deal with it and even create a new economic order if need be but we have to maintain our end of the system as it stands today.
That is about the best explanation of our economy as I’ve ever heard
Argentina: high rate and high inflation, will USA be next? Hope not
The guy on the right is a weirdo and a jerk
How do you know?
Fed says maybe 6 rate cuts, market soars. Now we may get none - market does not correct. You can see it with your own eyes. 2007 all over again, different facts, but same result. I dislike the wall street baloney.
🤣
SUMMARY:
-- Fed's Words and the Market --
Steve - Believes the Fed's statements significantly influence the market.
Rick - Argues the market is swayed by a wider array of factors, not solely the Fed's words.
-- How the Market Reacts to the Fed --
Steve - Points out that unclear communication from the Fed can lead to incorrect market predictions.
Rick - Maintains that the market forms its predictions based on its own set of expectations, not just on the Fed's communications.
-- Fed's Influence on Market Expectations --
Steve - Stresses the importance of the Fed's clear communication for market stability.
Rick - Doubts the Fed's ability to effectively shape market expectations.
-- Understanding Market Moves --
Steve - Is concerned about the possibility of the market misinterpreting the Fed.
Rick - Believes market movements are influenced by a variety of factors, not just the Fed's commentary.