This is all about the FED of course. Do not think Elon has a hand today.
This FED has not been one to surprise the markets. Do not know why it would start now as this would be extremely counterproductive. They have announced the acceleration of the taper program. The market is pricing in at least two and possibly three rate increases for next year. Uncertainty abounds regarding the COVID and economy. Surprising the markets here would have the main effect of telling the markets they were wrong and rudderless. Now then we would have some fireworks! Better to let inflation run hot a couple more months than do this.
BTW, no one ever discusses or only mentions in passing that all the inflation readings are presented YOY, as in December 2020 when shut downs were widespread and vaccines non existent. Wonder why the numbers would come in hot?
Forget about the pent up demand and helicopter money that has been frenziedly at work these past few months.
Speaking of this non stop inflation bogeyman, could not help but notice the overwhelming fixation on the price of oil as the main problem. OIL OIL OIL. Release the oil from the reserves! Find more oil! The 70s! Stagflation! 18% interest rates. Widows literally looking at the dollar bills in their mattress and watching them physically shrink!
Was puzzled. In 2010, oil averaged over 100 USD per barrel. Inflation adjusted pricing now is about 130 per barrel. Oil is currently yo-yo ing at around half that price now. So how is it possible that oil is a problem here at 70 per barrel? Why will oil destroy the economy? Seemed to be great old time in 2010 at twice the price.
Short answer I think is that is a rearguard action to purposely keep OIL in a narrow range for the benefit of fossil economy. The renewable economy is ascendant and already far cheaper in most of the world. But oil producers have not been investing for continued supply growth (to their credit I guess. They see the writing on the wall). So a real spike in prices is a possibility. But then the financial comparison with renewables would crush oil even more and perhaps finally turn the trend negative - significantly less oil used every year. If the prices in oil run away, then the possibility of stranded assets in the ground never to be monetized grows exponentially. Oil prices too cheap, and fossils lose money here and now with bankruptcy and non existence looming. Must keep oil prices in a narrow range, like Goldilocks economy. Must keep oil prices at the right price to squeeze every last discovered drop out of the ground. And so the inflation card must be played just right.
TL;DR If the FED does not surprise, we should see afternoon rally. Or at least no more diving.
This FED has not been one to surprise the markets. Do not know why it would start now as this would be extremely counterproductive. They have announced the acceleration of the taper program. The market is pricing in at least two and possibly three rate increases for next year. Uncertainty abounds regarding the COVID and economy. Surprising the markets here would have the main effect of telling the markets they were wrong and rudderless. Now then we would have some fireworks! Better to let inflation run hot a couple more months than do this.
BTW, no one ever discusses or only mentions in passing that all the inflation readings are presented YOY, as in December 2020 when shut downs were widespread and vaccines non existent. Wonder why the numbers would come in hot?
Forget about the pent up demand and helicopter money that has been frenziedly at work these past few months.Speaking of this non stop inflation bogeyman, could not help but notice the overwhelming fixation on the price of oil as the main problem. OIL OIL OIL. Release the oil from the reserves! Find more oil! The 70s! Stagflation! 18% interest rates. Widows literally looking at the dollar bills in their mattress and watching them physically shrink!
Was puzzled. In 2010, oil averaged over 100 USD per barrel. Inflation adjusted pricing now is about 130 per barrel. Oil is currently yo-yo ing at around half that price now. So how is it possible that oil is a problem here at 70 per barrel? Why will oil destroy the economy? Seemed to be great old time in 2010 at twice the price.
Short answer I think is that is a rearguard action to purposely keep OIL in a narrow range for the benefit of fossil economy. The renewable economy is ascendant and already far cheaper in most of the world. But oil producers have not been investing for continued supply growth (to their credit I guess. They see the writing on the wall). So a real spike in prices is a possibility. But then the financial comparison with renewables would crush oil even more and perhaps finally turn the trend negative - significantly less oil used every year. If the prices in oil run away, then the possibility of stranded assets in the ground never to be monetized grows exponentially. Oil prices too cheap, and fossils lose money here and now with bankruptcy and non existence looming. Must keep oil prices in a narrow range, like Goldilocks economy. Must keep oil prices at the right price to squeeze every last discovered drop out of the ground. And so the inflation card must be played just right.
TL;DR If the FED does not surprise, we should see afternoon rally. Or at least no more diving.
Your definition of ‘dragging the victim’s family through the mud’ needs some refining. And feel free at anytime to not make assumptions about what I’m thinking or feeling on a subject manner; just ask pointed questions and I’ll happily answer. And yes, you made a whole bunch of assumptions to arrive at all your conclusions.
