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Monday, June 10, 2019

Three Reasons a Fed Rate Cut Can’t Save The Dow

By: Wes Messamore

Three reasons the Federal Reserve can’t save the stock market:

1. The Fed already over expanded the money supply in QE1 – 3

Source: Federal Reserve Bank of St. Louis

The Fed has already given it all they’ve got, captain.

There’s nothing left for them to do. The Federal reserve is a one trick pony that cuts rates and expands its balance sheets to provide liquidity. But they’re about to beat their horse to death.

They’ve stretched the dollar too thin.

There’s not any give left in the money supply. The next round of rate cuts and easing will push the dollar off a cliff. If you think of the economy as a video game and central bank interventions as an “extra life” in the game- we’ve already used our last remaining extra lives since the Great Recession of 2007.

And the decadent elite of this country wasted them on over leveraging debt for overpriced houses, and acquiring more lambos, and eating $95,000 dollar truffles.

Read more at Hacked.