An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
This formula leaves out a very important component. This is why everyone got the rate hikes wrong. It led to record highs in stocks. (Financial assets.)
We went down about that much during the tariff drama. So what? That's just emotion. This stupid formula is wrong. It's based on the theory of loanable funds.
“ This is why everyone got the rate hikes wrong.”. Mike , How did they get it wrong ? We went down like 35% on NDX … so now it’s 4 years later and we’re up 28%. .. big deal… should be up over 40% …
Mike the system is regulated by those in authority…
They added 500b of regulated assets unexpectedly starting Feb 20 due to “debt ceiling” (reserve balances flood front TGA to Depository institutions and caused a 25% reduction in the price/value of financial assets,,
It’s a simple proportional control function … 8th grade algebra.,,
MMT people are also Art degree morons who are trained to argue with them via dialogic method so they just counter with “no we’re not out of money!” and have been also jerking off like this for over 20 years.,, get nowhere ..,
Where is the variable for gov't transfers?
ReplyDeleteThis formula leaves out a very important component. This is why everyone got the rate hikes wrong. It led to record highs in stocks. (Financial assets.)
ReplyDeleteWe went down 25%
ReplyDeleteWe went down about that much during the tariff drama. So what? That's just emotion. This stupid formula is wrong. It's based on the theory of loanable funds.
DeleteTotal cumulative S&P return since Dec 2021 before Biden/Powell started rate. increases is 28% in 4 years … ie a shit return
ReplyDeleteTrump wants rates at 1% if he can get a Fed head to do that we will go up then as much as we went down in 2022 …
ReplyDelete“ This is why everyone got the rate hikes wrong.”. Mike , How did they get it wrong ? We went down like 35% on NDX … so now it’s 4 years later and we’re up 28%. .. big deal… should be up over 40% …
ReplyDeleteSet “new high!” today so what? We were already here February 20th … complete waste of 4 months.. haven't gone anywhere in 4 months … “pay with time”…
ReplyDelete“ That's just emotion.”
ReplyDeleteIt’s not emotion it’s a regulatory function…
Mike the system is regulated by those in authority…
They added 500b of regulated assets unexpectedly starting Feb 20 due to “debt ceiling” (reserve balances flood front TGA to Depository institutions and caused a 25% reduction in the price/value of financial assets,,
It’s a simple proportional control function … 8th grade algebra.,,
It’s (A-L)/A =0.1 at t=0
ReplyDeleteThen govt adds 500b of assets so it’s [ (A-L) +500 - L] / A = 0.1 at t=1
So A has to be reduced,,, ie financial asset values are reduced.,,
All the sell offs are caused by these Art degree monetarist morons adding reserves”to lend out!”
ReplyDeleteThey think the Accounting abstractions are REAL…
It’s a textbook reification fallacy by these unqualified morons.,,
MMT people are also Art degree morons who are trained to argue with them via dialogic method so they just counter with “no we’re not out of money!” and have been also jerking off like this for over 20 years.,, get nowhere ..,
ReplyDeleteAnybody can argue.,,
Im not arguing I’m TELLING YOU how it is.,,,
ReplyDeleteMike where is your equation?
ReplyDelete“Emotional reaction” is not an equation..,
EVERYTHING works via equation…
“F=ma”
ReplyDeletePV=mRT
ReplyDeletev=ir
ReplyDeleteAND.., they are going to do it AGAIN .., don’t know when though.,,
ReplyDelete