Jaime Dimon has warned everyone to prepare for 7 percent fed funds rate and pontificated on other gloom and doom.
“We’ve never had QT before. It just started, okay? And you see huge distortions in the marketplace already. We’ve never had the Fed in the market like this with that RRP program that Jeremy mentioned ever. They have $2.3 trillion basically lent out to money funds. And I don’t know the full effect of that. And obviously, that’s a direct deduction from deposits are rolling out it made sense to do.”
Source: Finance.yahoo.com
Residential housing has started to correct downward in terms of sales price and sales volumes are down. Commercial real estate has nearly a trillion dollars of debt that needs to be refinanced and delinquencies continue to rise.
The consumer is starting to transition to ‘necessities’ over luxuries and that won’t bode well for an economy that is 70% dependent on consumer spend.
Stormy seas ahead and it’s time to prepare in earnest so stay tuned, stay profitable and stay solvent…