Red Paint - 5/21/2022 07:50
Bert - 5/21/2022 08:07
We will break below the 2009 low. I was expecting a harder crash. but it looks like a slow bleed over 12 - 18 months is how this one plays out. The Fed's number one mandate is now fighting inflation, and they haven't even begun to shrink their balance sheet, or raised rates to above the level of inflation, which will be necessary. Huge headwinds ahead. The days of easy money are behind us. Things are about to get real again. Thank goodness.
There won’t be a solvent entity in North America or Europe at double digit interest rates; government or private. The world has become dependant on cheap interest rates. Full stop.
I am of the same opinion, 10% interest is the 20% of the 80’s. Probably even worse in a way.