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Stock Sale Day Before Fed Emergency
- rich_sasha 5y agoI distrust ZeroHedge to the point that I would assume they’re actively lying about stuff most of the time, but... if true, this would be beyond shocking.
- bloodyplonker22 5y agoThe "smarter" fake news bloggers usually post things that have some degree of truth and are much harder to prove as actually fake.
- deleted 5y ago[deleted]
- newaccount2021 5y agoThe Fed may possibly be more powerful than the Federal government during peacetime. Almost every problem in our economy can be traced back to Fed meddling. Misinvestment, malinvestment, inflation, moral hazard...the list goes on and on. The Fed truly does reward its clients...the growth in hyper-wealth has created a whole new class of ultra-rich while most toil away with no gain in real wages, left to rent their lives as assets climb to the stratosphere thanks to the Fed. Contrarians on HN love to argue that there is no inflation. I bought our current house three years ago. According to Zillow and comparable sales, it has TRIPLED in value since 2018. If you don't think there is inflation....
- Dylan16807 5y agoInflation isn't measured in house prices. If you even tried to make that a major factor, you'd get ridiculously different measures of inflation in different cities.
- readthenotes1 5y agoInflation used to include house prices until the 1980s where they wanted to quell inflation. An easy way to do it was to change the definition. Now, it includes something called owner equivalent rent, to include both rent and owning a house. The intent is to include a house prices in inflation indirectly.
- readthenotes1 5y agoAs a recent measure, https://calculatedrisk.substack.com/p/measuring-rents https://calculatedrisk.substack.com/p/measuring-rents
- joe_the_user 5y agoEconomists do talk about asset inflation [1]. The Fed and the media not so much. The price of housing is very much a symptom of asset inflation and this is plausibly the result of the Fed continually injecting money into and/or "backstopping" various capital markets. [1] https://en.wikipedia.org/wiki/Asset_price_inflation https://en.wikipedia.org/wiki/Asset_price_inflation
- Dylan16807 5y agoAssets matter, but are any other physical assets going up the same way?
- ecommerceguy 5y agoThe optics are certainly very bad on the timing and size of these trades to the point where it should be investigated for an ethics violation. That will NEVER happen.
- noway421 5y agoNot disputing any points in general, interesting read. But in the end of the article: the fact that he has many bank accounts may be used for accounting purposes? The document doesn't say if the bank accounts are with different banks or with the same bank. And it's not like he has 250k in each bank account, which would allude to FDIC insurance limit, either.
- leoedin 5y agoIt seems kind of crazy that the incredibly distorting effect of consistently low interest rates, quantitive easing and other central bank policies - mostly to the benefit of existing capital owners - is seen as almost a-political in the West. We argue about other things - like tax rates and social security, and meantime our central banks carry on with their mission almost unchallenged. Central banks have managed to create an aura of science over what they do. Mean while the cumulative policies of the last decade have created incredible asset price inflation, mostly to the detriment of the young. Is this healthy for society? That doesn't seem to be a question the (mostly baby boomer) people making these decisions are asking. The central banks try to paint themselves as mere lever pullers, reacting to inflation and economic growth with their interest rates. But the system is so much more complicated than that - all these other unseen effects rippling through the economy and affecting people's lives.
- strikelaserclaw 5y agoThe kind of people who even know this is happening are the ones who have a vested interest to keep it there in the first place. People are selfish and greedy.
- jjoonathan 5y agoYes, it's nuts. The moment that younger generations realize that inflation reduces debt, I predict that, ummm, the baton will be firmly gripped, yanked, and the equilibrium will shift hard in the opposite direction. Then we'll have a different set of problems.
- zzzzzzzza 5y agothe distortion is much more fundamental than interest rate policy. The real distortion is taxing income and sales and not land or other forms of monopoly rent. creating the vast majority of money through mortgages or student loans to motivate people to work hard as slaves for feudal masters. central banks have no control over that fundamental design decision, they just oil it, but if they didn't it wouldn't be any prettier of a sitution.
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- pliny 5y agoHe made those trades in late February, not late march, so if the result of those trades was net long he probably did worse than people who traded after hearing the announcements.
- missedthecue 5y agoI'm not sure what's being insinuated here, but if it's insider trading, that's probably the worst trade ever. Just days before the market cratered 40%, this individual sold out of bonds and bought into equities.
- seattle_spring 5y agoHmm ZeroHedge on HN. A half-step away from Infowars or Natural News.