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Tafkam Hokie

Joined: 10/07/1999 Posts: 35179
Likes: 13640


I think you give Wall Street too much credit


Investors are a twitchy, panicky, herd much more than thoughtful, analytical, and rational creatures.

The Fed is raising interest rates to try and tighten the money supply and reign in inflation (necessary, and a good idea). Wall Street just sees the supply of free money drying up and panic sells instead of actually thinking through the fact that getting inflation under control is a good thing for the economy.

If we get a recession, it is as likely to be caused by Wall Street's reaction to the Fed as by the Fed itself.

(In response to this post by vt90)

Posted: 05/05/2022 at 3:57PM



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