Rebel Capitalist News Fed Rate Decision, Global Governments Collapsing, Automageddon
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Dec 19, 2024 Jeff Snyder, an expert on global economics and political issues, reveals the alarming state of global governments facing collapse. He discusses the fallout from the Fed's recent hawkish stance, its volatility impact on markets, and the complexities of liquidity, touching upon a humorous fictional cryptocurrency, 'Fartcoin.' The conversation delves into the precarious state of the auto sector, the intertwined fates of the U.S. and Canadian economies, and suggests a looming recession amidst misleading unemployment figures. It's a witty, insightful exploration of today's economic turmoil.
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Hawkish Fed Cut
- The Federal Reserve's 25 basis point cut was perceived as hawkish by the market, leading to a significant drop in the Dow.
- This hawkish cut and the Fed's statements about future cuts surprised the market, causing a 10-day losing streak.
Mirroring 2007
- The current Fed rate cut cycle mirrors the 2007 cycle, starting with a 50-point cut followed by two 25-point cuts.
- These similarities raise concerns about a potential economic downturn similar to the 2007-2008 financial crisis.
Identical Cycles
- The current rate cut cycle is identical to the GFC cycle in every way.
- This observation emphasizes the concerning parallels between the current economic situation and the lead-up to the Great Financial Crisis.