16 Comments
Mar 23, 2023Liked by Peter Nayland Kust

Does Powell have any clue what he’s doing?

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The Fed has to continue to raise rates. In the 80s the Fed Funds rate was over 19%, we are currently at 5%. The trillions in wasteful spending is the problem. This is going to take years to dissipate. Powell can't ignore inflation. American's have more personal debt than ever in history of our nation. Credit card debt is close to a trillion dollars. According to Lending Tree the average car loan is over $700 with many over $1000 a month. Many are seriously underwater and stuck with high interest loans. Imagine those that just bought a house 18 months ago and a new car. Now, they get laid off, who pays the bills? Defaults will be in full swing by Q3. Powell has to keep fighting inflation, I look for another hike at the next meeting in 2 months. There will be no cuts this year despite what people want. Things are much worse than the average citizen realizes. Layoffs will widen and inflation will continue to crush the people. Looking for someone to blame? Who do you really think is responsible for the current economic situation?

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Mar 22, 2023Liked by Peter Nayland Kust

[The U.S. banking system is sound and resilient. ]

But of course.

Echoes of 2005 in my ear...

And 2006.

And 2007.

And... oops!

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Mar 22, 2023Liked by Peter Nayland Kust

The Fed raises a rate and markets lower rates.... hmmm

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founding
Mar 22, 2023Liked by Peter Nayland Kust

Here’s what I think is being underestimated: consumer unease.

There’s probably all kinds of studies correlating ‘fear’ with ‘sell off’. Buy how do you quantify ‘unease’? Every friend I spoke with this past week said they considered taking money out of their bank accounts -‘just in case’ of a bank run. No one did, so there are no actions to quantify. But the majority of Americans feel that they absolutely cannot afford to lose their savings in a bank run, and this festering unease about ‘what the heck is going on’ could be triggered into actions very, very rapidly by the least little event.

And these ten gazillion dollars worth of derivatives! There are maybe 100 people in the whole world who understand the algorithms involved, and they all have PhDs in math. So the ‘unknown’ aspects of the derivatives add to the ‘unease’, even in the professional financial jobs. It’s all too precarious!

Mr. Kust, I would appreciate an entire column devoted to how these derivatives fit into the big picture, if you’re interested....

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Mar 22, 2023Liked by Peter Nayland Kust

The Fed’s boy Powell is no more than an arsonist posing as a firefighter.

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S&P +10% into EOQ. Trust the Plan.

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