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Maxwell Benz
Reventure Consulting
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Comments by "Maxwell Benz" (@Tential1) on "Fed Planning MAJOR ECONOMIC RESET (Prepare for 50% Declines)" video.
Oh wow. Now it makes sense why the market crashes in 2018. I didn't understand why 2% interest rates were such a big deal. Because then, 2% interest rate = 2% spread. Holy crap. Thanks. Wow. Ya that sums it up perfectly. It's over. You have to bail when you have RISK FREE vs actual risk for less money. You just made it obvious. 4% borrow vs 5% cap, 1% spread, lots of people will take the treasury. If you can get out with capital preservation and switch to a variable rate short term instrument, that's what a lot of people will do until the fed pivots.
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I keep saying the fed does interest rate changes wrong. They don't give the market enough time to adjust. When it's good times, they need to hike a basis point at a time in a boring algo method. Why they still use 25 jumps or more at meetings is beyond me. They are genuinely stupid. Now I see why it always causes issues. No one can move assets around in time. When you only look at numbers on a screen it doesn't make sense.
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