Next week is going to be all or nothing

right, I saw the headline but didn’t read. if the fed gives any indication that it will be scaling back QE then stocks will free fall, since it is the main driver to current valuations. the same reaction would occur if they raised interest rates. problem is that the fed kept interest rates low when the economy was booming so there wasn’t much room to drop before hitting or zero. the fed doesn’t want negative rates, so it has to print and buy.

in the end the question is what’s more important to these guys: the value of the USD or stocks? JP isn’t sitting at home hoarding cash in his closet. the guy has several millions in shares of the best performing equities out there. it’s about the continuous enrichment of themselves at the expense of the public.

USD could retest older lows and bounce back up from there but not going to reverse short term unless the Fed raises interest rates and ends QE. problem is recession is still just getting started.

/r/wallstreetbets Thread Parent