Quote:
Originally Posted by Black968
The Financial markets are so complicated and intertwined it can make your head explode. Some will look at it as an opportunity, some will cash out and run for the hills. Generally it is best to look at someone who has been there and done that, Warren B is an example, if you have cash, there is an opportunity coming. If you are over extended and in debt up to your eye balls, it's going to get rough. If you have loans on shat you don't need or cannot afford , liquidate.
The Gubment put the Fed in this mess with Covid lock downs, but the FED should never have dropped the rates to .25%. It was a double whammy, free money times 2. If you have cash, make sure it is secure and insured, if you own stock, make sure the companies you own are not over leveraged because they will take a hit also.
As far as the curve, it only indicates that the market is thinking this blow over or we won't be around in two years.
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Not for me...
I disagree with most of this...it is missing parts... You have to take into account when Buffet and under what circumstances he was investing... in a time of unprecedented prosperity...that dynamic and circumstance no longer exists..which skews your analysis.
The American people via their government and credit cards...over spent for decades culminating is a shyte hits the fan moment in 08..the response was to switch to the credit tank of the public treasury and intrinsic value of the nations currency..to create the MOTHER OF ALL BUBBLES a SOVEREIGN DEBT BUBBLE. That string has about played it self out..they can not kick the can down the road no mo.
The FED thinking in 2020 was to throw everything they had including the kitchen sink into the fire to stabilize a seized economy. THERE WAS NO TOMORROW, if they couldnt' stabilize...they would gone to 10T or more if they needed to...they were going all in.
After the fact the consequences are that the USD and Bonds are on shaky ground. Where the FED had to support the USD particularly in foreign markets and against a nascent inflation.. The FED is in CHECKMATE because any which way that they move there are negative consequences. Which all lead to DEMAND DESTRUCTION.
So the crisis that you asked about in 2017 is here..look at the number of things that have went south this year at all levels.