The Fed will pivot in big way to feed 'the beast’: Stock market guru

The Bear Traps Report founder Larry McDonald reacts to banks getting battered in the markets and analyzes how the Federal Reserve will take action. #FOXBusiness

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[Nernst]

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?

[JaykeTurner]

Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.

[AlphaMale_]

So, when the Fed raises rates to cause unemployment -- that's OK with them. Hurt little people.
BUT,
If raising rates causes bank failure and rich people are impacted -- then the government IMMEDIATELY comes to the rescue.

[jamescampbell]

Remember two years ago when the worst thing you had to deal with was a mean tweet?

[bobbymainz]

In spite of how everyone is frightened and calling the crash, there is already an excessive amount of demand waiting to absorb it, which is another reason it's less likely to happen that way. This forecast was not made in 2008, at least not by the general public, as I will explain below. The ownership rate peaked in 2004, according to the other comment. We reached a peak in the second quarter of 2020 and are currently at the median level. From 2008 to 2012, it fell by 3%, and in the second quarter of 2020, it dropped from 68 to 65.

[lakeguy]

The Fed can either fight inflation or protect banks but not both. The Fed will choose to protect banks and we'll live with inflation for years.

[johnlennon]

The negative impact of SVB and SI debacles has been reflected in the regional bank ETF (KRE) which has witnessed a decline of over 20%. This event has triggered contagion effects, dragging the entire market lower. However, historically speaking, a localized and narrow contagion of this nature presents an opportune time to invest in strong, financially stable companies with substantial cash reserves on their balance sheets.

[surfacetenn]

It's coming buckle up everyone it's going to a bumpy landing and the crash site is starting to get crowded.

[ricfax]

As Warren Buffet has often said, "It's only when the tide goes out you see who's swimming naked."

[Robertgriffinne]

I still blame the FEDs for this, because in the end they benefit by either buying off the failed banks cheaper or something. The fed can print credit as long as someone will borrow it into existence, but they cannot print product (or production).

[anthonygarofalo]

Man this president is just TANKING this economy! TANKING

[bernardallen]

Increased losses for portfolios this quarter are predicted by market drops, skyrocketing inflation, a major interest rate hike by the Fed, and rising treasury rates. How can I profit from the volatile market right now? I'm still considering whether to sell my million dollar bond and stock account.

[MikeJaegerLive]

BOND MARKETS ARE SO HUGE ... LAST 10 YEARS MANY MANY LOW INTEREST BONDS WERE SOLD... NOW THEY HAVE LOST RESALE VALUE BECAUSE PRIVATE CENTRAL BANKERS ARE SELLING NEW BONDS AND LOANS THAT PAY 3 TIMES MORE INTEREST. THE RATE HIKES HAVE CAUSED A HUGE INVENTORY OF OLDER LOW INTEREST LOANS AND BONDS TO LOSE TOO MUCH VALUE... Bonds have... TOO MANY SELLERS NOW... AND NOT ENOUGH BUYERS. Opsie or on purpose pillaging by Pvt central Banking families. They sold their old low interest loans long ago and now are selling their new higher rate loans and bonds to their benefit but the harm US 🇺🇸.

[johnbroker]

I get my news from every source I can find to compare them and make up my own mind

[Patriciacraig]

I am really worried about the current bank crisis. If a bank as big as SVB could fail, I fear for a lot more. I know a friend who is running a high-growth startup, and was badly hit by the bank run. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to$250, 000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?

[trennaclark]

Article II, Sec 4: President, Vice President, civil Officers of the United States, shall be removed from Office on Impeachment Conviction of Treason, Bribery, or other high Crimes & Misdemeanors.

[lugwrench]

40 TRILLION on the National Debt Clock or BUST !!

[lugwrench]

This is why I invested heavily in Forever Stamps.

[G]

There is ZERO chance the FED won’t raise rates at least another 25BPS next week.

[mrk]

Raising interest rates during a near deppression will bancrupt the Country. Seriously.