Lions... We Have A Developing Problem.
From Greg M
Lions…
As I discussed in my post market wrap up today, we need to (as usual), keep our eyes on the 10 year yield- there is a developing problem here.
This is the current 10 yr below.
Keep in mind that the current Federal Funds Rate is 4.5 - 4.75%
The MMRI is rising fast, already warning of a developing problem.
If the 10 year yield goes par/equivalent, or even just gets closer to the FFR, IT IS NOT A GOOD SIGN. Meaning, we should expect to see the economy slow faster. (We all already know that this is the case despite the current political vomit/garbage, nonsense/deception/scheme and lies to the contrary).
If this does occur, par, it could rattle the stock market. Potentially, it could set off a sharp sell-off in the debt market as well, which of course could potentially MELT DOWN the stock market..
The question is WILL THE FED INTERVENE?
What’s your take?
GM
Will the FED intervene?
It’s an interesting question. Presuming the FED wants a Central Bank Digital Currency (CBDC), and the power over every aspect of our lives that comes with it, then a strategic move would be to allow the financial/monetary system to crash under President Biden. Then President Trump steps in and “saves” the day using a CBDC. Having won the Popular vote, and being in the honeymoon phase of his Presidency, this could be more palatable to a large portion of a suffering citizenry.
I have not forgotten how President Bush pushed through the deceptively named “Patriot Act” and eroded our freedoms.
“Never let a crisis go to waste”, per the Deep State philosophy.
Warren Buffet seems to be preparing for something big