Anonymous ID: ae4c69 Dec. 25, 2018, 9:29 a.m. No.4464444   🗄️.is 🔗kun

>>4463245 lb Fed Put

This doesn't mean anything. It's just a catchall that's the same thing as 'printing money'.

 

In the Greenspan era i believe they just cut rates around crashes. In the 07 crash, they started with emergency and scheduled rate cuts, which kinda worked, then continued with quantitative easing that was complicated bond buyback shit that basically did the same thing. They bought bonds to drive prices up which means the yield rate on those bonds went down. Whatever.

 

Right now the situation is more complicated because they're raising rates for marginally justifiable reasons and promising to continue doing so AS the market is dropping. The lines are all blurred because their rate hikes muddy the water as to whether the market drop is fundamentals or just a reaction to rate hikes. And promising to continue rate hikes as the markets dropping seems pretty fucking stupid.

 

There's literally nothing the Fed could do differently to stiflethe market other than raising rates 2 quarters at a time. As the markets drop, their justification for the rate hikes disappears. I don't even particularly believe the yield curve explanation faggotry. It's just pricing in the inevitable reversal of current Fed policy. The increase in recent financial gobbledygook is worrisome. Trump's correct to be pissed.