I believe the odds are good that at some point, the Fed will blink and relent, just like they have every other time in the last 30 years, especially if their owners (a group that we've come to call "the banksters") start having difficulties. The big banks are ostensibly in better shape now than they were in 07/08, but with the insane amount of leverage all throughout the economy, I don't think it will take all that much of a downturn before they demand relief.
According to the most recent "stress test" the big banks' exposure in a crisis is around $600 Billion. Most of the larger banks might have to raise capital but would likely survive.
As with 2008, it's the shadow banking system of hedge funds and derivatives that carry the biggest exposure.
Somewhere out there is an LTCM or Lehman Brothers waiting to blow up.
I believe the odds are good that at some point, the Fed will blink and relent, just like they have every other time in the last 30 years, especially if their owners (a group that we've come to call "the banksters") start having difficulties. The big banks are ostensibly in better shape now than they were in 07/08, but with the insane amount of leverage all throughout the economy, I don't think it will take all that much of a downturn before they demand relief.
07/08 was a scam...DOJ was told to stand down. Lehman Brothers going under would not of caused the claimed failure of the banking system.
According to the most recent "stress test" the big banks' exposure in a crisis is around $600 Billion. Most of the larger banks might have to raise capital but would likely survive.
As with 2008, it's the shadow banking system of hedge funds and derivatives that carry the biggest exposure.
Somewhere out there is an LTCM or Lehman Brothers waiting to blow up.
Fed hiking rates = tightening M1 money = deflation (classically) = recession, depending length of duration = great depression equal to 1928<gamed flattening the money supply>1929 to1933.
The fly in ointment is that M1 has not tightened.