by Chris Black

Huge segments of the economic system were far too slow to position for Fed Rate hikes to five%-6%.  

They simply didn’t consider it might really occur.  

They’ve as an alternative positioned for a “Fed Pivot” that was to occur any day, and would yield great returns on their capital allocations.  

Positioning for a Fed Pivot is the precise opposite of positioning for a Fed Rate mountaineering cycle and a “higher for longer” policy.

The identical financial geniuses did not position for prolonged inflation at the patron level (Consumer Price Index, CPI). 

 They were convinced that inflation (as measured by CPI) was “transitory” and would simply go away by itself once the Covid Lockdown bottlenecks sorted themselves out.  

Now these extremely highly paid (and greedy) retards are protesting that “no one could have seen this coming”.  

Jerome Powell on the Fed is doing exactly what he said he was going to do: regularly hike the Fed Fund Rate to five%-6% range and keep it there for a while. 

 He’s said it at every FOMC meeting for nearly two years. 

 If “investors” thought they knew higher, that’s their problem.

American households have done no higher. 

 They’re unbelievable poorly positioned for tightened lending standards, higher rates of interest, and high inflation causing higher each day cost-of-living.  

Many are facing looming financial catastrophe, are completely unprepared, and blame everyone and every thing but themselves.