{"id":35056,"date":"2018-06-13T06:30:19","date_gmt":"2018-06-13T11:30:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35056"},"modified":"2018-06-13T06:30:19","modified_gmt":"2018-06-13T11:30:19","slug":"blain-will-the-fed-hike-unleash-the-swing-moment-when-suddenly-balance-is-lost","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35056","title":{"rendered":"Blain: Will The Fed Hike Unleash The “Swing” Moment When Suddenly Balance Is Lost?"},"content":{"rendered":"
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Blain: Will The Fed Hike Unleash The “Swing” Moment When Suddenly Balance Is Lost?<\/span><\/a><\/h3>\n<\/div>\n
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Fed, Stratospheric dangers, US corporate leverage and the greater competition to manage funds.<\/strong><\/p>\n

\u201cOf all extinct life-forms, dinosaurs are the most popular. Why that should be is not clear\u2026 \u201d<\/p><\/blockquote>\n

All eyes on the Fed today. They will hike by 25bp to 2% \u2013 the 6th hike in 7 quarters. Slow and gradual. This is something of a one-off in terms of the economic environment \u2013 unconventional being the word<\/strong>. Easy financial conditions in terms of growth, inflation, jobs and the ongoing fiscal spending and tax boosts. Plus, we\u2019ve got the positive sentiment effects of strong equity and real estate markets \u2013 when folk feel rich they feel positive! Plus plus, with the rest of the world still on negative or zero interest rates, then money continues to pour into Treasuries making the ballooning deficit a SEPT (Someone Else\u2019s Problem Tomorrow). Asset prices are inflated, but still weakness in consumer prices and wages. This remains an \u201cinteresting\u201d space in terms of the potential policy pitfalls, and the \u201cswing\u201d moment \u2013 when suddenly balance is lost and the centre cannot hold…<\/strong><\/p>\n

Perhaps the writing is already on the wall? <\/strong>I was slightly concerned to read the National Federation of Independent Business (the US SME organisation) believes: \u201cMain Street optimism is on a \u201cstratospheric trajectory\u201d thanks to recent tax cuts and regulatory changes\u201d. <\/strong>Stratospheric is often confused with ballistic. Stratospheric could mean its\u2019 going into orbit, or simply that a ballistic launch will reach the stratosphere. Sadly, ballistic means the kind of trajectory Kim Jong Un claims to no longer be interest in\u2026`<\/p>\n

(Last time someone was talking \u201cstratospheric\u201d it was in relation to Bitcoin, and that\u2019s not ending well. Final comment on ballistic trajectories\u2026.I note a headline about Telsa slashing salaried staff.. )<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Blain: Will The Fed Hike Unleash The “Swing” Moment When Suddenly Balance Is Lost? Fed, Stratospheric dangers, US corporate leverage and the greater competition to manage funds. \u201cOf all extinct life-forms, dinosaurs are the most popular. Why that should be is not clear\u2026 \u201d All eyes on the Fed today. They will hike by 25bp […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[15674,303,431,481,534,3650,4318],"class_list":["post-35056","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bill-blain","tag-fed","tag-interest-rates","tag-leverage","tag-monetary-policy","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35056","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35056"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35056\/revisions"}],"predecessor-version":[{"id":35057,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35056\/revisions\/35057"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}