Valid point.0.25% may be nothing, but it's doubling the Policy Interest Rate, lol...
And when 10-year yields are not even at 2%, then increasing the Policy Interest Rate by only 0.25% is huge. A Policy Interest Rate rising by more than 10% of the current 10-year yield, lol...
I'm not arguing that they shouldn't raise rates, they should, I'm just pointing that with rates so low, we are in deep sh*t.
Will we ever see 10-year yields back above 5%? HAHAHAHAHA, hilarious!
The rich controls this world and won't allow such a thing to happen.
Are we headed into a correction, a crash or a long term recession?
In some ways the economy is doing well aside from Covid disruption. However, I think there is a lot of possibility for the smallest disruption to result in big trouble. If we look at the charts prices for most stocks are not much below where they were 6 months ago. If people are freaking out now. what happens when they get to where we were in 2020 and the BOC and FED have no room to cut. Just keep printing and let inflation run wild while wage growth (real or nominal) remain flat?
If one searches the forum they will find threads going back 5-10 years talking about NA moving to a no growth market like Japan experienced. A lot of this was due to demographics, shift in economic policy etc. A generation were unable to find good jobs, invest, buy real estate etc. and its market returned next to nothing.