What would happen if FED keeps on hiking interest rates without worrying about the economy?
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#FED #Powell #Recession #stockmarketcrash #inflation #interestrates
@TheFactFindr @abhymurarka @harrie007
(1/5)
Answered in this #Thread🧵
Kindly leave a like, it's a motivation🤗
#FED #Powell #Recession #stockmarketcrash #inflation #interestrates
@TheFactFindr @abhymurarka @harrie007
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👉Powell has said that he will keep rising interest rates until the "job is done".
👉This would be squeezing out all the excess debt, bringing inflation below 2% & calming the valuations down.
(2/5)
👉This would be squeezing out all the excess debt, bringing inflation below 2% & calming the valuations down.
(2/5)
👉Warren Buffett says that historically markets are around 70% - 80% of the GDP. Well, as of now they are 2 times worth.
👉Also, due to Fed's zero-interest policy, their debt is around 375% of the GDP.
(3/5)
👉Also, due to Fed's zero-interest policy, their debt is around 375% of the GDP.
(3/5)
👉 So, if Powell just keep on increasing rates madly, stocks will crash, along with businesses & corporate bonds.
👉Real estate will go down the drain.
👉People won't be able to refinance mortgages & many will loose their jobs.
(4/5)
👉Real estate will go down the drain.
👉People won't be able to refinance mortgages & many will loose their jobs.
(4/5)
👉Gov would come very close to defaulting on its debt. So, just increasing rates at one go until things are good & calm isn't that good as it sounds.
(5/5)
(5/5)
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