of these people knows no bounds...
“It (The Fed) is ignoring deflationary and dangerous signals,” she posted to Twitter on Sunday, arguing the consumer price index lagged real-time developments. Some economists say setting policy using this type of data is equivalent to driving by looking through the rearview mirror.
(Baloney, The Producers Price Index (what manufacturers pay for raw goods they make into finished products) is staying ahead of the Consumer Price Index (a measure of inflation). If the PPI is higher? You can count on the CPI being higher later. To argue that there are deflationary signals and that this is backwards looking data is nonsense. Again just think about the combines harvesting wheat right now with diesel costing $6 a gallon. Look at how much less traffic you are seeing in the streets, freeways, in restaurants, stores etc...To argue there is not more inflation coming is foolishness, this thing is just now getting ramped up.)
"Wood and many of her peers benefited from the legacy of the latter’s accommodative rate policies that inflated asset prices, especially for high-growth stocks favored by ARK Invest.'
(Ya think that might have something to do with why she is saying what she is? Maybe? A lil bit anyway?)
"In our view, the U.S. fell into recession during the first quarter."
(Now that I agree with her on)
"Wood may be urging the Fed to reduce its pace out of her own interest, since many of the stocks in her funds have fallen from their highs in November 2021 after Fed signalled it was no longer convinced inflation was transitory.
ARK Innovation, her flagship exchange-traded fund, has seen a drop of over 23% last year and has plunged 60% so far in 2022."
Oh it's not just her it's a bunch of these Wall Street types.
Here is why. It goes a lil something like this.
With interest rates at or near 0% after the financial crisis? And continuing for the next decade? Individuals/institutions with large amount of collateral to put up could borrow large amounts of $ for practically nothing. They would buy stocks, that in turn would raise the stock(s) price up way more than the 0-.25% interest rate they could get with the loan they took on. Cash out the stock, pay back the loan, pocket the difference. Those days are over. Forever, and they dont like it. They would rather the Fed just ignore inflation, that argument goes a lil something like this: Hey its not gonna work anyway it's all scarcity issues not artificially driven demand, so dont raise rates and just let us keep doing what we have been.
Like I said, the greed of these people...they don't want their punch bowl taken away from the party.
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