I’m just going to bring up two points that speak for themselves. Just how relevant or precarious they are is up to you, dear reader. As it should be.
Did you know that one of the most pertinent reports to measure GDP by the Federal Reserve (aka GDPNow via the Federal Reserve Bank of New York) just so happened to find itself in this new era of cancel culture and took upon itself to cancel itself along with any historical data of past?
Funny how that happens when it appears any and all projections for GDP growth and/or inflation are seemingly spiraling in directions not conducive to any of the Fed’s prior forecasts. Pure coincidence, I’m sure.
Speaking of coincidence…
Did you hear that two of the Federal Reserve presidents (e.g., Mr. Kaplan of Dallas and Mr. Rosengren of Boston)
were caught disclosed that they had been actively trading their own portfolios all along? And, now that it is known, have decided for the sake of not having any possible vested interest or misunderstandings going forward, they are going to sell their holdings and move them to cash, you know, for the sake of integrity?
But, is that the “coincidence” that should catch someone’s attention who is trying to pay attention? Well, yes and no. For the real one you should noodle on, is this one…
Is it not just a bit coincidental that since the above revelation of these two Fed. presidents, one who just so happens to be the ex V.P. of banking at Goldman, that only a day or so later, that same bank, adjusted its metrics for a possible Fed. taper from below 50-50 (mid 40’s) to a now, and far more consequential figure, of mid 70’s plus?
And people still want to believe: “The Fed’s got their back!”
Sure they do. And for confirmation, just ask anyone that did all the right things in life like: worked and frugally saved so they could retire comfortably and with general safety away from any market volatility during their “golden years” via any interest bearing accounts that took them decades to fund.
Just understand, that coincidence may strike there also, such as…
They may be out working as a Walmart™ greeter trying to compensate for all this Fed intervention.
But not too worry we’re assured, they would never do the same to stock market holders what they did to those savers and bond holders, right? That would be just too coincidental.
© 2021 Mark St.Cyr
Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.
Addendum: Later during the day I received a note from a colleague saying to the effect: “They said they were needing to change the formulation because of the impacts for COVID. That sounds like a reasonable thing to me.”
I responded, “It sure does, but then ask yourself, why wasn’t it needing to be addressed prior? You know, when the ‘markets’ were only going up with no chance or even a hint of ‘Tapering.’ Now, suddenly, it’s all no longer relevant? i.e., They didn’t just remove the forecast or tool going forward, but eliminated – all of it. You know, everything prior when the world never heard of the word COVID. Pure coincidence, I’m sure, right?”