John Pitera's Market Laboratory Message Board

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Strategies & Market Trends : John Pitera's Market Laboratory

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To: kimberley who wrote (21381)	10/5/2018 2:30:51 PM
From: John Pitera	4 Recommendations Recommended By 3bar fred woodall kimberley sixty2nds Read Replies (1) of 33421

yes kimberly..... an entire generation is going to learn what happens you have funding costs for the entire global economy decline for 36 years.... and then reverse course and increase.... the negative global yields and the very low interest rates we had in the US on July 6th 2016 was the low water market for free money..... the magnitude of going from .000% to .0125% was a double; having the reference range on FFUNDS go from .0125% to .025% is a double....... then from .025% to .05% is another double.... then when LIBOR and the Fed Funds went from .05% to 1.0% that was the 4th double...... and when we went from.01% to .02% that was the 5 double..... everyone in the world has funding costs..... most people are not aware that they have a cost of funds..... they know it but.... don't understand it from a technical major money center banking perspective.... The happy hour where they were giving out free adult beverages last for so many years that everyone had the happy time buzz on... and the warm glow of a lovely world...... and as the oxygen leaves the room.... i.e. the free central bank money...... it leaves quietly enough that just like a frog in a pot of water.... it feels so nice and good as the water is warming up a bit at a time..... People will absolutely need Sherpa guides who have been up and down the mighty mountain a few times to assist them with the curves and unusual terrain one encounter on these allegorical trips up and down the great majestic mountain.... John

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