🇺🇸 THE FED CAN'T HOLD AND WAIT
FOR LONGER NOW.
The federal reserve's Delimma
SOME SIGNS OF A WEAKER ECONOMY ARE EMERGING, AND I THINK THE FED WILL REACT SOON.
LET ME SHOW YOU WHY.
1_S&P 500's Sharp Decline
THE S&P 500 IS NOW DOWN 10% IN JUST 2 TRADING DAYS AND HAS ERASED $5 TRILLION IN VALUE.
THE LAST 2 TIMES S&P 500 DROPPED 10% OR MORE IN 2 DAYS WERE DURING MARCH 2020 (COVID CRASH) AND NOVEMBER 2008 (THE GREAT FINANCIAL CRASH).
BOTH TIMES, THE FED HAD EMERGENCY RATE CUTS AND FLOODED THE ECONOMY WITH QE.
2-Rising Credit Risk
ANOTHER WORRYING SIGN IS US CREDIT RISK GOING UP; IT IS NOW AT ITS HIGHEST LEVEL SINCE THE 2023 BANKING CRISIS.
A CREDIT EVENT IS SIMPLY THE BORROWER'S INABILITY TO MEET ITS PAYMENTS, WHICH IS HAZARDOUS FOR THE ECONOMY (2008 FINANCIAL CRISIS).
3_Bitcoin's Resilience Amid Chaos
I THINK BTC IS ACTUALLY WEIGHING IN ALL THESE FACTORS, AND THAT'S WHY IT'S HOLDING STRONG.
4_Rate Cut Predictions for 2025
AFTER YESTERDAY'S CRASH, POLYMARKET IS ALSO SHOWING 53% ODDS OF 4 OR MORE RATE CUTS IN 2025.
5_Powell Must Act Now to Avert Disaster
NO MATTER WHAT POWELL SAYS, THE FACT IS HE WILL HAVE TO ACT FASTER; OTHERWISE, THERE'LL BE "FINANCIAL ARMAGEDDON".
