El-Arian Today: From Fed behind on inflation (so last week)... to seeing full on stagflation (this week)...means the Fed will have to both raise 50 basis points AND slow rate increases... but... changing paradigms... and the new paradigm is much less supportive for assets in general
The Fed has no choice but to raise rates by 50 basis points, says Mohamed El-Erian
So, the Fed pushed the markets off a cliff on Friday... and today, say "sorry about that"... and are floating that they are reversing course (on the MOPE) of future expectations re RATES... so will raise them 50 basis points... while the market focuses on "OK. That's it" ?
But, El-Arian fails to address QT impacts in this short flip... or flop... ?
So, just more of the same old same old bullshit... in a market that is more and more obviously manipulated ?
There is a bottom line, though... which should have been made apparent enough last week...
That is,,, the market has been made so dependent on Fed manipulation... that the market no longer has a brain that enables it in correctly valuing anything real... but only values Fed opinion... as it flips and flops... when that opinion is isolated and adrift... existing entirely outside the reality of the actual context...
And, that's made a far bigger risk... because the Fed also has no brain...
But, the market moving on... rumors focused on encouraging ignoring reality... has a value of its own...
The MOPE of inflation... failed. As the MOPE of MOPE fails... El Arian will be proven right... as "the new paradigm"... emerges... But, as he addresses change as "not supportive of ownership of assets"... he fails to define the "new paradigm" in any other way ?
Prepare to have nothing... but, don't expect to be happy about it ? |
