TIP Daily Briefing: June 27, 2017
Austin Frank

Wake up both the last two recession were seen coming, the big short, irrational exuberance……..

“It’s not as if regulators were sounding the alarm in late 2007 of an imminent financial collapse.”

How much more of a warning can the Regulators provide without be accused of lighting the fuse? Regulators can only pick up the pieces after the market crashes and I don’t think they should have. They shouldn’t be bailing out banks and companies, nobody is too big to fail. Who made them God with power to pick winners and losers.

If Yellen yesterday said the market was over valued and we are past time for the next recession she would be crucified. I think she is lieing or at least putting the most positive spin she can on the future.

Why is the Fed Raising rates, so when the next recession comes they can cut rates. If they keep rates low all they can do is Quantitative Easing and their balance sheet is already bloated. She needs to talk up the market to put off the recession until they and reduce their balance sheet and jack up rates to reload their guns for the next cycle. Its not like she is raising rates to keep inflation in check.

The fact that she had that conversation means that she is using one other tool the Fed has, its bully pulpit.

By financial crisis, I think she means that in the coming recession they will not have to bail out banks and the government will not have to rescue big companies from bankruptcy. She did not say their would not be another recession. She is actually saying the next recession is coming but because we have prepared it will not be as bad as the last one.


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