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00:00
so it's day two of the market falling
00:05
dramatically so we're down 1,700 points
00:08
or so from the previous high I guess so
00:14
we came back a little bit
00:16
I was only down 110 right now so yeah
00:21
these things happen we know that markets
00:24
Molotov we are seeing one thing that I
00:28
think is new that I haven't seen in
00:30
previous market moves that I can't
00:33
remember at least so here we go
00:36
Trump is blaming the market route on the
00:38
Fed and saying you know Powell is is
00:43
being too aggressive and raising rates
00:44
too quickly so whether or not that is
00:49
accurate you know I think calling you
00:55
know how long these moves and interest
00:57
rates aggressive front from the Fed side
00:58
I think is a little bit ridiculous but
01:00
this is the first time I can remember at
01:03
least anybody publicly blaming the Fed
01:06
and manipulating interest rates as
01:08
affecting stock market and I think this
01:11
is actually kind of critical in that you
01:15
know making making the public aware that
01:19
you know basically the at least a large
01:24
part of the stock market moves and bonds
01:26
and everything else in the financial
01:28
world is heavily affected by what the
01:32
Fed does so you know those two people
01:35
yep you know Board of Governors
01:38
affecting the economy you know wide so
01:42
from that set from that perspective I
01:44
think it's kind of an interesting
01:46
watershed moment you know since 2008 you
01:53
know the Fed has taken a much larger
01:57
public role as far as you know how it
02:01
operates and you know back in those days
02:03
you had Ron Paul in the Congress and you
02:06
know trying to grill Bernanke and
02:10
and then we started seeing the Fed -
02:12
holding press conferences for the first
02:14
time ever so I think this is another
02:17
step in that development of people
02:18
becoming more and more aware so really
02:22
interesting stuff and personally I think
02:26
you know we are you know we're right at
02:29
the top the we're seeing interest rates
02:32
move more and more dramatically as you
02:35
know the Fed rate comes up and then you
02:38
know we approach whatever that natural
02:40
rate of interest is in the current
02:42
market and we go beyond that then things
02:44
will roll over in crash and you know
02:46
I've mentioned this many times you know
02:47
anything that's interest rate sensitive
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like let's see we've got real estate
02:52
that's always a big one we've got a car
02:54
lending which is rolling over we've got
02:57
suit loans credit cards you know bond
03:01
funds because as interest rates go up
03:03
bond prices go down so if you're in a
03:05
bond fund the total value goes down if
03:09
you're just gonna hold a bond in an
03:11
individual bond I mean you're happy with
03:12
the interest rate you're happy with the
03:13
coupon that you're getting then great
03:15
you know no problem and then you know
03:19
we're seeing some you know secondary and
03:22
tertiary effects in the stock market
03:24
itself because you know a lot of these
03:26
large financial houses are you know
03:28
borrowing and doing carry trades and
03:30
whatnot whether they're domestic or
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international so yeah a lot of our
03:35
economic asset valuations are very
03:39
closely related to the interest rates
03:42
and course the Fed sets the base trader
03:44
than the market reacts today so
03:47
interesting stuff you know Trump is so I
03:55
mean erratic in is one word but you know
03:58
it's not like he has guiding principles
04:00
that you know then dictates a course of
04:03
action it's kind of like you know grab
04:04
bag of you know this sounds good I want
04:06
to do that at hawk so you know it would
04:11
not even surprise me for you know if
04:16
let's say the market rolls over and you
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know crashes and they go into a bear
04:20
market
04:21
and people are gonna blame Trump because
04:23
you don't saw in his watch and Trump is
04:25
not gonna want to take that so blame the
04:27
Fed it would not surprise me for him to
04:29
say that you know him pull like
04:33
channeling the spirit of Andrew Jackson
04:35
and wanting to end and the Fed you know
04:39
I I'm not saying that will happen but I
04:41
could see that happening and it would be
04:43
really entertaining if that happened so
04:48
keep your eyes peeled