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(Marketwatch)   Bill Ackman, who famously cried on live TV as stocks crashed at the start of Covid: "Stocks are crashing because the Fed won't print unlimited money"   (marketwatch.com) divider line
    More: Dumbass, Dow Jones Industrial Average, hedge-fund billionaire Bill Ackman, basis points, last day, series of aggressive rate increases, market collapse, Monetary policy, former Fed members  
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768 clicks; posted to Business » on 25 May 2022 at 1:53 AM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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View Voting Results: Smartest and Funniest
 
2022-05-25 5:57:16 AM  
The Fed is a confidence trick:  the fed controls inflation through small adjustments to the interest rate because investors believe that the fed is keeping inflation in control. Small, deliberate adjustments are part of that trick.

If the investing public starts to realize that this isn't the case, that the fed actually can't keep control, we're boned.
 
2022-05-25 5:58:50 AM  
It appears what Ackman is actually demanding from the Fed is more aggressive tightening through faster rate hikes, which is the exact opposite of what is implied by Subby's headline
 
2022-05-25 6:11:53 AM  
Stocks are crashing because most investors are totally choads.
 
2022-05-25 6:17:53 AM  
Did Subby even read the article at all?
 
2022-05-25 6:33:43 AM  
Money supply is decreasing for the first timesince 2010

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2022-05-25 6:34:28 AM  
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2022-05-25 6:40:18 AM  
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2022-05-25 6:41:18 AM  
Stocks are down because the Fed is un-winding a crapload of their balance sheet that should have been done a lot more aggressively since 2012. But any time it was tried, the poor starving investors whined that the economy was hurting. Obama considered their viewpoints at least somewhat valid and Trump was too stupid to think anything but the Dow = My Performance Rating
 
2022-05-25 6:48:56 AM  

Likwit: Did Subby even read the article at all?


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hej
2022-05-25 7:07:29 AM  

Likwit: Did Subby even read the article at all?


I didn't, but I'm hoping it explains how printing more money will reduce inflation.
 
2022-05-25 7:34:31 AM  

Likwit: Did Subby even read the article at all?


I sure hope not.

I was able to deal with the Fark redesign a few years ago, I was able to deal with the abomination that was FarkTV, I was able to deal with Fark Audio Edits, I was able to deal with Foobies being destroyed for some silly absurd unrealistic delusional political ambitions, but the day Subby starts actually reading the articles they are creating headlines for and submitting is the day I'm finally done with this goddamn place!
 
2022-05-25 9:03:39 AM  

hej: Likwit: Did Subby even read the article at all?

I didn't, but I'm hoping it explains how printing more money will reduce inflation.


There are a lot of Fark economists that think that literally the only thing the Fed does in relation to the economy is "print money", by which at least half of them I assume think we're actually talking about making more paper money. (Which, of course, the Fed doesn't do at all.)
 
2022-05-25 9:10:03 AM  

Mr. Tweedy: Stocks are crashing because most investors are totally choads.


Stocks are approaching their historically normal valuations.

Fark user imageView Full Size


Having P/E's in the 30's was the aberration.
 
2022-05-25 9:11:11 AM  
I wisely sold all my stocks this morning.  I'll get back in when it gets to the bottom.  That's how smart investors make all their money.
 
2022-05-25 9:26:48 AM  
This creep got his money from US.
He literally took it out of our pockets. The Fed printed tons of free money so he could get obscenely rich quick, and then they got their tax cut, and now WE get to pay off the deficit, while he gets to have money fights on yachts.
 
2022-05-25 9:33:55 AM  

hej: Likwit: Did Subby even read the article at all?

I didn't, but I'm hoping it explains how printing more money will reduce inflation.


What's good for Wall Street is good for America.
 
2022-05-25 9:44:54 AM  

Rapmaster2000: I wisely sold all my stocks this morning.  I'll get back in when it gets to the bottom.  That's how smart investors make all their money.


I hope you put it all into crypto - that's surely due to go to the moon any day now.
 
2022-05-25 11:03:53 AM  

eKonk: Rapmaster2000: I wisely sold all my stocks this morning.  I'll get back in when it gets to the bottom.  That's how smart investors make all their money.

I hope you put it all into crypto - that's surely due to go to the moon any day now.


You have no credibility because you didn't use enough emojis.  You need to do it like this:

I hope you put it all into crypto 💎✨🤲 💎✨🤲  - that's surely due to go to the moon🚀🚀🚀🚀🚀 any day now.
 
2022-05-25 11:38:38 AM  

pearls before swine: hej: Likwit: Did Subby even read the article at all?

I didn't, but I'm hoping it explains how printing more money will reduce inflation.

There are a lot of Fark economists that think that literally the only thing the Fed does in relation to the economy is "print money", by which at least half of them I assume think we're actually talking about making more paper money. (Which, of course, the Fed doesn't do at all.)


Hey now, we're not supposed to actually understand what the Fed does.  We're supposed to have strong opinions of what we *think* the Fed does.

This is why I choose to believe their meetings are full of cocaine and printing presses, rather than the tedium of nerds interpreting reams of nuanced data.
 
2022-05-25 11:57:51 AM  
Maybe rich people should pay their fair share in taxes or pay the people that work for them a living wage.
 
2022-05-25 12:32:04 PM  

Snarcoleptic_Hoosier: Stocks are down because the Fed is un-winding a crapload of their balance sheet that should have been done a lot more aggressively since 2012. But any time it was tried, the poor starving investors whined that the economy was hurting. Obama considered their viewpoints at least somewhat valid and Trump was too stupid to think anything but the Dow = My Performance Rating


They haven't even started reducing their balance sheet yet if you look at their weekly figures. (As of Thursday I believe is the latest). The tightening hasn't even started and we already printing -GDP, and really shiatty housing numbers on unfolds.

Bond rates have been going down the last week or so. The market could already be placing a bet on cuts/QE expansion if the economic data continues to decline. Durable goods # today was rough too.

/fun times
 
2022-05-25 12:53:09 PM  
The Federal reserve *doubled* the money supply to buy individual stock funds to goose the stock market, after the stock market dropped 10,000 points in a week at the beginning of the c19 pandemic. The "true" value of the Dow was about 25k and S&P500 is about 2500. That doubling of the money supply was a cause a lot of the inflation in the United States; then the gas prices went up, making it even worse, and global. This further goosed stock markets by having them priced in inflationary money.

At some point the fed has to either sell its stocks, cratering the stock market; or accept the doubling of the money supply, meaning the stock market is technically twice the price but half its true value. People who think the Fed is going to do the former are selling ahead of the crash; people who think the latter are buying before their money is worth half as much.
 
2022-05-25 12:58:04 PM  

Sim Tree: The Federal reserve *doubled* the money supply to buy individual stock funds to goose the stock market, after the stock market dropped 10,000 points in a week at the beginning of the c19 pandemic. The "true" value of the Dow was about 25k and S&P500 is about 2500. That doubling of the money supply was a cause a lot of the inflation in the United States; then the gas prices went up, making it even worse, and global. This further goosed stock markets by having them priced in inflationary money.

At some point the fed has to either sell its stocks, cratering the stock market; or accept the doubling of the money supply, meaning the stock market is technically twice the price but half its true value. People who think the Fed is going to do the former are selling ahead of the crash; people who think the latter are buying before their money is worth half as much.


They only buy bonds.
 
2022-05-25 1:13:21 PM  

Hawk the Hawk: pearls before swine: hej: Likwit: Did Subby even read the article at all?

I didn't, but I'm hoping it explains how printing more money will reduce inflation.

There are a lot of Fark economists that think that literally the only thing the Fed does in relation to the economy is "print money", by which at least half of them I assume think we're actually talking about making more paper money. (Which, of course, the Fed doesn't do at all.)

Hey now, we're not supposed to actually understand what the Fed does.  We're supposed to have strong opinions of what we *think* the Fed does.

This is why I choose to believe their meetings are full of cocaine and printing presses, rather than the tedium of nerds interpreting reams of nuanced data.


Why not both?
 
2022-05-25 1:14:52 PM  

AsparagusFTW: Sim Tree: The Federal reserve *doubled* the money supply to buy individual stock funds to goose the stock market, after the stock market dropped 10,000 points in a week at the beginning of the c19 pandemic. The "true" value of the Dow was about 25k and S&P500 is about 2500. That doubling of the money supply was a cause a lot of the inflation in the United States; then the gas prices went up, making it even worse, and global. This further goosed stock markets by having them priced in inflationary money.

At some point the fed has to either sell its stocks, cratering the stock market; or accept the doubling of the money supply, meaning the stock market is technically twice the price but half its true value. People who think the Fed is going to do the former are selling ahead of the crash; people who think the latter are buying before their money is worth half as much.

They only buy bonds.


In doing so, they depress the yield on bonds driving other investments toward stocks. The whole system is a giant tank that sloshes back and forth. The aggregate value of US financial markets is several trillion dollars out of balance. The fed tapering things off is starting to correct this.
 
2022-05-25 2:57:18 PM  
We want free market capitalism! Unless we lose money. Then send in the government to save us from becoming only millionaires.
 
2022-05-25 3:18:15 PM  

Rapmaster2000: I wisely sold all my stocks this morning.  I'll get back in when it gets to the bottom.  That's how smart investors make all their money.


I started selling stuff when the market was at 33500

like gains, losses compound

cost average in, cost average out

losing 20% of 60% is a whole lot better than losing 20% of 80%

actually bought some stuff last week

ETFs not a big deal
 
2022-05-25 3:21:03 PM  
I actually have cash in the bank too so

more like 50% stocks right now
 
2022-05-25 3:25:36 PM  
arborinvestmentplanner.comView Full Size
 
2022-05-25 3:30:25 PM  

zepillin: I actually have cash in the bank too so

more like 50% stocks right now


We're getting to a great place in the stock market right now. Even big tech are at pretty fair prices. For anyone with cash to spare, it's a great environment. I prefer to hold companies, but even if you're just cost averaging into your favorite ETFs, you're gonna be happy in a couple of years.
 
2022-05-25 3:33:51 PM  

NewWorldDan: AsparagusFTW: Sim Tree: The Federal reserve *doubled* the money supply to buy individual stock funds to goose the stock market, after the stock market dropped 10,000 points in a week at the beginning of the c19 pandemic. The "true" value of the Dow was about 25k and S&P500 is about 2500. That doubling of the money supply was a cause a lot of the inflation in the United States; then the gas prices went up, making it even worse, and global. This further goosed stock markets by having them priced in inflationary money.

At some point the fed has to either sell its stocks, cratering the stock market; or accept the doubling of the money supply, meaning the stock market is technically twice the price but half its true value. People who think the Fed is going to do the former are selling ahead of the crash; people who think the latter are buying before their money is worth half as much.

They only buy bonds.

In doing so, they depress the yield on bonds driving other investments toward stocks. The whole system is a giant tank that sloshes back and forth. The aggregate value of US financial markets is several trillion dollars out of balance. The fed tapering things off is starting to correct this.


The crazy part is that they're not even to neutral yet.
 
2022-05-25 3:47:55 PM  

Likwit: NewWorldDan: AsparagusFTW: Sim Tree: The Federal reserve *doubled* the money supply to buy individual stock funds to goose the stock market, after the stock market dropped 10,000 points in a week at the beginning of the c19 pandemic. The "true" value of the Dow was about 25k and S&P500 is about 2500. That doubling of the money supply was a cause a lot of the inflation in the United States; then the gas prices went up, making it even worse, and global. This further goosed stock markets by having them priced in inflationary money.

At some point the fed has to either sell its stocks, cratering the stock market; or accept the doubling of the money supply, meaning the stock market is technically twice the price but half its true value. People who think the Fed is going to do the former are selling ahead of the crash; people who think the latter are buying before their money is worth half as much.

They only buy bonds.

In doing so, they depress the yield on bonds driving other investments toward stocks. The whole system is a giant tank that sloshes back and forth. The aggregate value of US financial markets is several trillion dollars out of balance. The fed tapering things off is starting to correct this.

The crazy part is that they're not even to neutral yet.


Bostic is already talking about pausing rate hikes in Sept. They won't be going much higher.
 
2022-05-25 3:49:22 PM  
Somewhat better still sucks
 
2022-05-25 3:57:54 PM  

AsparagusFTW: Likwit: NewWorldDan: AsparagusFTW: Sim Tree: The Federal reserve *doubled* the money supply to buy individual stock funds to goose the stock market, after the stock market dropped 10,000 points in a week at the beginning of the c19 pandemic. The "true" value of the Dow was about 25k and S&P500 is about 2500. That doubling of the money supply was a cause a lot of the inflation in the United States; then the gas prices went up, making it even worse, and global. This further goosed stock markets by having them priced in inflationary money.

At some point the fed has to either sell its stocks, cratering the stock market; or accept the doubling of the money supply, meaning the stock market is technically twice the price but half its true value. People who think the Fed is going to do the former are selling ahead of the crash; people who think the latter are buying before their money is worth half as much.

They only buy bonds.

In doing so, they depress the yield on bonds driving other investments toward stocks. The whole system is a giant tank that sloshes back and forth. The aggregate value of US financial markets is several trillion dollars out of balance. The fed tapering things off is starting to correct this.

The crazy part is that they're not even to neutral yet.

Bostic is already talking about pausing rate hikes in Sept. They won't be going much higher.


The rhetoric is so stupid. Bullard was saying they're trying to get to 3 or 3.5 percent so they can cut interest rates again next year. The fark?
 
2022-05-25 4:11:47 PM  

Likwit: AsparagusFTW: Likwit: NewWorldDan: AsparagusFTW: Sim Tree: The Federal reserve *doubled* the money supply to buy individual stock funds to goose the stock market, after the stock market dropped 10,000 points in a week at the beginning of the c19 pandemic. The "true" value of the Dow was about 25k and S&P500 is about 2500. That doubling of the money supply was a cause a lot of the inflation in the United States; then the gas prices went up, making it even worse, and global. This further goosed stock markets by having them priced in inflationary money.

At some point the fed has to either sell its stocks, cratering the stock market; or accept the doubling of the money supply, meaning the stock market is technically twice the price but half its true value. People who think the Fed is going to do the former are selling ahead of the crash; people who think the latter are buying before their money is worth half as much.

They only buy bonds.

In doing so, they depress the yield on bonds driving other investments toward stocks. The whole system is a giant tank that sloshes back and forth. The aggregate value of US financial markets is several trillion dollars out of balance. The fed tapering things off is starting to correct this.

The crazy part is that they're not even to neutral yet.

Bostic is already talking about pausing rate hikes in Sept. They won't be going much higher.

The rhetoric is so stupid. Bullard was saying they're trying to get to 3 or 3.5 percent so they can cut interest rates again next year. The fark?


They're not breaking past the 50yr trend line on rates. The last high was 2.25. We get 1 more before Q2 GDP data. As a guess I say they get to 1.75 before they pause, and go to QE Infinity. But who knows. They can't tighten into this shiatstorm.

Plus midterms coming up ect.
 
2022-05-25 4:19:13 PM  

Likwit: AsparagusFTW: Likwit: NewWorldDan: AsparagusFTW: Sim Tree: The Federal reserve *doubled* the money supply to buy individual stock funds to goose the stock market, after the stock market dropped 10,000 points in a week at the beginning of the c19 pandemic. The "true" value of the Dow was about 25k and S&P500 is about 2500. That doubling of the money supply was a cause a lot of the inflation in the United States; then the gas prices went up, making it even worse, and global. This further goosed stock markets by having them priced in inflationary money.

At some point the fed has to either sell its stocks, cratering the stock market; or accept the doubling of the money supply, meaning the stock market is technically twice the price but half its true value. People who think the Fed is going to do the former are selling ahead of the crash; people who think the latter are buying before their money is worth half as much.

They only buy bonds.

In doing so, they depress the yield on bonds driving other investments toward stocks. The whole system is a giant tank that sloshes back and forth. The aggregate value of US financial markets is several trillion dollars out of balance. The fed tapering things off is starting to correct this.

The crazy part is that they're not even to neutral yet.

Bostic is already talking about pausing rate hikes in Sept. They won't be going much higher.

The rhetoric is so stupid. Bullard was saying they're trying to get to 3 or 3.5 percent so they can cut interest rates again next year. The fark?


And for another point. They always point to their dot plot for rate increases. No dot plot has ever been fully actualized. They should just hold up a 4yr old's crayon drawing at this point.

/Slashing for the 6.5T in debt we have to roll over in the next 12 months
//Imagine higher rates on that pile
 
2022-05-25 8:02:39 PM  
Hey guys, I'm starting to think that tying our economy to legalized gambling where the 'high rollers' are allowed to cheat was a bad farking idea.
 
2022-05-25 8:38:24 PM  

AsparagusFTW: Likwit: AsparagusFTW: Likwit: NewWorldDan: AsparagusFTW: Sim Tree: The Federal reserve *doubled* the money supply to buy individual stock funds to goose the stock market, after the stock market dropped 10,000 points in a week at the beginning of the c19 pandemic. The "true" value of the Dow was about 25k and S&P500 is about 2500. That doubling of the money supply was a cause a lot of the inflation in the United States; then the gas prices went up, making it even worse, and global. This further goosed stock markets by having them priced in inflationary money.

At some point the fed has to either sell its stocks, cratering the stock market; or accept the doubling of the money supply, meaning the stock market is technically twice the price but half its true value. People who think the Fed is going to do the former are selling ahead of the crash; people who think the latter are buying before their money is worth half as much.

They only buy bonds.

In doing so, they depress the yield on bonds driving other investments toward stocks. The whole system is a giant tank that sloshes back and forth. The aggregate value of US financial markets is several trillion dollars out of balance. The fed tapering things off is starting to correct this.

The crazy part is that they're not even to neutral yet.

Bostic is already talking about pausing rate hikes in Sept. They won't be going much higher.

The rhetoric is so stupid. Bullard was saying they're trying to get to 3 or 3.5 percent so they can cut interest rates again next year. The fark?

They're not breaking past the 50yr trend line on rates. The last high was 2.25. We get 1 more before Q2 GDP data. As a guess I say they get to 1.75 before they pause, and go to QE Infinity. But who knows. They can't tighten into this shiatstorm.

Plus midterms coming up ect.


Yeah, anyone that thinks they're going higher than 2 percent (either now or literally ever) is nuts.

The current selloff is due to 'inflation' from high gas prices causes higher prices everywhere lowering profits thanks to the Russian war... and a WHOLE BUNCH of idiots thinking the fed is going to go to 3 or 4 percent rates.

One the fed signals they won't raise rates much further (or decide to stop) the stock market will ramp right back up again.

/And once inflation cools down enough (and it already has signaled that it's peaked and is coming down), that'll help immensely too.
 
2022-05-25 10:21:36 PM  
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2022-05-26 12:59:35 AM  
It's about time we popped this bubble. We still have to pop the real estate bubble.

People confuse investment with speculation. When you invest, you spend money to increase efficiency. You do this by spending money on education, infrastructure, and R&D. Speculation is when people outbid each other to raise the price of something. Like art. Expensive art does not help the economy. A lot of the recent growth (the last 20 years or so years) in real estate and stocks, especially crypto, has been due to speculation.
 
2022-05-26 1:08:44 PM  

Ehre: It's about time we popped this bubble. We still have to pop the real estate bubble.

People confuse investment with speculation. When you invest, you spend money to increase efficiency. You do this by spending money on education, infrastructure, and R&D. Speculation is when people outbid each other to raise the price of something. Like art. Expensive art does not help the economy. A lot of the recent growth (the last 20 years or so years) in real estate and stocks, especially crypto, has been due to speculation.


True. There's a difference between investing and gambling. Someone who forgets this difference will learn, in a very hard way, gambling's most fundamental rule:

'The house always wins.'
 
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