Wall Street Is Fooling Itself.
According to Breitbart Economics Editor John Carney, in a Friday interview with Fox Business host Larry Kudlow, the stock market is still "at loggerheads with the Fed," believing the central bank will lower interest rates this year rather than raise them in reaction to stubbornly high inflation.
The mindset of the stock market "doesn't exactly make sense," according to Carney. "They examined the inflation data and declared, "Alright, it decreased from January. So perhaps the Fed can reduce," If there is a real economic disaster, the Fed won't cut because inflation is simply too high; in that scenario, the stock market shouldn't be surging right now.
The reality is; reality has not been present for a few years in the investment markets.
There is a contradiction in the stock market's thesis, he continued. "I would be really dubious about what I've been witnessing lately, not just in the stock market but also in the futures market, which is currently pricing in perhaps three or four [interest rate] cuts by the end of the year. Meanwhile, Fed officials keep saying, "We're absolutely not going to cut," every time we hear from them. We are maintaining the line. We'll likely raise the money one more time before holding it through the year's end and most likely into the following one. But, the market and the Fed have essentially been at odds for the majority of the past year.
Kudlow pointed out that the market's optimistic expectations are not supported by the most recent economic data, especially if Federal Reserve officials stick to their two percent inflation target.
The inflation rate is currently "approximately 2.5 times the target," according to Kudlow. Thus, they will need to tighten the screws even further. But what does the market believe? “That the aim would be increased to three or four percent?"
Woke Disney Begins Mass Layoffs
Why would this matter to me is the crucial question to ask. When a company makes the decision to cut jobs in the thousands, it should set off alarm bells. It is no secret that Disney has been moving in a very different direction than “Family oriented” entertainment.
A quick search on Yahoo Finance illustrates the top two holders of Disney shares is BlackRock and Vanguard. There are two clear reasons which could make you uncomfortable investing with these two money managers at this time.
If you feel the direction of the company does not fit your view of things you should own, and
If you feel Disney’s business direction may not be nearly as profitable as in earlier years based on the current news.
Disney has been embroiled with a fight with the state of Florida for some time now, and the fight is not over. Governor DeSantis has encouraged state lawmakers to adopt a bill that would abolish Disney's special tax district in an effort to give them more control over the company's theme parks in Florida. This has been their goal for almost a year. DeSantis also planned to create a new board of supervisors, and rename the region the Central Florida Tourist Oversight District.
This is not the company of Walt Disney, and the present circumstances should make it clear the future may never come close to what made Disney so successful.
Slash Federal Reserve by 90 Percent
Republican presidential candidate and entrepreneur Vivek Ramaswamy told Breitbart News in an exclusive interview that slashing the Fed and unleashing growth is the key to getting out of the banking crisis.
The American businessman claimed that drastically curtailing the Federal Reserve's responsibilities and eliminating 22,000 of its workers will help stop future banking crises similar to the one the country is currently going through.
He called it a "disastrous" 25-year experiment and claimed that the Federal Reserve had mistakenly attempted to play "God" by attacking both unemployment and inflation with a single arrow. He said that the Fed should concentrate entirely on maintaining the stability of the US dollar rather than trying to address too many economic problems at once.
Ramaswamy argued that the Fed places an undue amount of reliance on the purported Phillips curve, which he claimed is founded on a "erroneous premise" and outdated historical data that is irrelevant to the contemporary American economy. According to the Phillips curve, there is a trade-off between employment and inflation: if unemployment falls too far, inflation is likely to rise as well. When policymakers declare they need to lower the demand for workers to fight inflation, notably at the Fed, they frequently do so in an implicit manner utilizing the Phillips curve when they say they need to reduce demand for workers to fight inflation.
Zig Ziglar, a renowned motivational speaker and author, shared numerous insights on personal development, success, and change.
