Three ways for the government to get out from under a mountain of debt: 1.) pay it off - not going to happen. 2.) default, don't pay it back - not going to happen. 3.) inflate your way out - pay off your debts with newly inflated dollars.
we got a preview with the post covid inflation and interest rose so quickly that now the government has to pay 1 trillion in interest a year. The ideal situation is what we had during Obama, which was low inflation low interests, allowing the government to make interest payments with a tiny fraction of its budget.
So the best path forward would be to lock in some profits with in the next few months, build a cash position and wait for the next big stock price sale?
Which is worse for consumers? Higher inflation, while still having a job? Or lower inflation, but no job? These analysts and media make no sense. Labor market is weakening, consumers are spending less. HOW exactly is inflation going to creep back up over a 0.5% cut? Inflation is at 2.5% (2.2 according to the Fed), Rates are at 5%. Fed is still TOO restrictive. These media just WANTS to Fed to break something. 50 bps cut is just fine. They can always PAUSE next meeting, and it'd be the same as doing a 25, 25. Geez. And if labor market continues to decline, they can always cut some more. Inflation ISN'T the main concern anymore, it's keeping the unemployment from spiraling down more.
Very curious, I know you travel quite a bit. What do you see in the real world, on the ground globally and speaking with different people in different countries and seeing such diverse economies? Would be a cool travel/finance video. Keep up the great content
The FED was too early and too much in my opinion. But stocks can rally in the meantime. Hope not too many traded on all the bearish sentiment yesterday.
Until one understands the market deeper than just what a redditor or some stock board guru says. I'm not sure the true value and in depth analysis provided here is truly recognized. Keep the good work up. Muchly appreciated
The more it runs up. The worst The sell of will be. Meanwhile, I am enjoying some winning stocks I have. Unless the numbers they announce are well cooked and USA is already in a recession.
This is reassuring with what I have been thinking for a short while. I think stocks are going to tank. Bargains can be made when that happens. NVDA lower than $40 one day before it rises again
@moneyvest. Healty capitalism. Big lots, Tupperware, old restaurants. Out with the outdated poorly ran, in with the new. It's not well ran quality companies facing bankruptcy. We are also in a generational transition entering a new 20 year period. Exciting times ahead
@moneyvest. do you know the venture capitalists investment on start ups have increased 200 times now then compared to 2007...they still keep investing in startups when 80 percent of those fail. The moment market is out of recession news which is like march or april next year we wont be able to catch the discounted price which they are in now
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Three ways for the government to get out from under a mountain of debt:
1.) pay it off - not going to happen.
2.) default, don't pay it back - not going to happen.
3.) inflate your way out - pay off your debts with newly inflated dollars.
we got a preview with the post covid inflation and interest rose so quickly that now the government has to pay 1 trillion in interest a year. The ideal situation is what we had during Obama, which was low inflation low interests, allowing the government to make interest payments with a tiny fraction of its budget.
@@patatepowa debt doubled under Obama.
So the best path forward would be to lock in some profits with in the next few months, build a cash position and wait for the next big stock price sale?
Higher interest cut benefit small cap companies the most. I suspect something is melting on small cap companies.
It's just the shorts covering causing a run-up
One more chance for the degen retail subcategory to buy a few more peaks after selling the bottoms in Aug. I don't see how this ends well into 2025
I totally agree, next week this thing is going to dump. And we still have 7 trading days left in September.
Lol the rates go up markets go up the rates go down markets go up
No way mid caps and small caps are breathing last breath...if they dont cur interest rate all these companies will go bankrupt
They did cut rates and will continue to do so. Anyone claiming next one is going to be a hike I believe is reading bum data
Bro, this whole video was like the thoughts in my head coming out of your mouth.
Which is worse for consumers? Higher inflation, while still having a job? Or lower inflation, but no job? These analysts and media make no sense. Labor market is weakening, consumers are spending less. HOW exactly is inflation going to creep back up over a 0.5% cut? Inflation is at 2.5% (2.2 according to the Fed), Rates are at 5%. Fed is still TOO restrictive.
These media just WANTS to Fed to break something. 50 bps cut is just fine. They can always PAUSE next meeting, and it'd be the same as doing a 25, 25. Geez. And if labor market continues to decline, they can always cut some more.
Inflation ISN'T the main concern anymore, it's keeping the unemployment from spiraling down more.
Fed cut too much and I’ll predict that we’ll start seeing more inflation later on this year or early next year
Bullish, the difference this time is the big companies will keep making record profits, they're so innovative
@@willbaron1 all depends on spending. If consumers don’t spend, there are no earnings even if they’re innovative
Very curious, I know you travel quite a bit. What do you see in the real world, on the ground globally and speaking with different people in different countries and seeing such diverse economies? Would be a cool travel/finance video. Keep up the great content
Thank you so much my friend
The rate cut made sense. It takes time for the cuts to work through the economy. He played it correctly based on what we know now IMO.
On point!
Pypl is no more painpal😂
Do you know what defined outcomes are?
The FED was too early and too much in my opinion. But stocks can rally in the meantime. Hope not too many traded on all the bearish sentiment yesterday.
Too late and too much.
All at once a 50 basis is too sharp, means the cut came in late.
Should have done 25 basis earlier this year or late last year.
Until one understands the market deeper than just what a redditor or some stock board guru says. I'm not sure the true value and in depth analysis provided here is truly recognized.
Keep the good work up. Muchly appreciated
I'm waiting until earnings before I jump in. What do you predict will happen if the US government shuts down next month?
The more it runs up. The worst The sell of will be. Meanwhile, I am enjoying some winning stocks I have. Unless the numbers they announce are well cooked and USA is already in a recession.
What was different in the years that did not go into recession ?
Bring on the coupons!!!
This is reassuring with what I have been thinking for a short while. I think stocks are going to tank. Bargains can be made when that happens. NVDA lower than $40 one day before it rises again
But this is an election year. lol
Powell gonna start the stagflation cycle.
2007 was where Lehman brothers and all zombie companies were getting bankrupt thats cause the recession
@@mittalvar did you know the corporate bankruptcies have hit their highest levels in 14 years :)
@moneyvest. Healty capitalism. Big lots, Tupperware, old restaurants. Out with the outdated poorly ran, in with the new. It's not well ran quality companies facing bankruptcy. We are also in a generational transition entering a new 20 year period. Exciting times ahead
@moneyvest. do you know the venture capitalists investment on start ups have increased 200 times now then compared to 2007...they still keep investing in startups when 80 percent of those fail. The moment market is out of recession news which is like march or april next year we wont be able to catch the discounted price which they are in now
Warren Buffet is selling 🤔
I think they have to inflate it more before they send it over the cliff
@Monevest .. when do you think its time to buy TLT/TMF and RKT (mortgage refinance)
I think bubble is already bursted and from here all companies are building the confidence in its balancesheet