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Gas Marches Higher
The Biggest Owner Is Going To Sell
So let’s say you know this in advance, what have you done? You have already sold. Whether or not this has been done in full, or not, and what impact that will have on borrowing and lending is the great unknown.
You don’t even need to know what the Federal Reserve is. The largest house in your subdivision forecloses due to personal bankruptcy, forcing a sale. What has occurred to the value of your house? Very simple. The question: was that foreclosure an isolated incident, or not?
Four Treasury securities held by the Fed are maturing in June, totaling $48.25 billion, leaving $18.25 billion over the $30 billion runoff cap to be reinvested
Source: New York Fed
Why This Matters
In addition to the obvious (higher borrowing rates), the question is whether or not the feedback loop affects companies (their profitability, and their employment / hiring).
You can call Elon Musk crazy or a genius (or both, they can certainly co-exist), but yesterday, this announcement as reported in the New York Times: Tesla to Cut 10% of Salaried Staff, Musk Tells Employees (read here).
The good: readers of Jae’s Corner have known, in advance, that this would be a very difficult period. Literally, I changed the Maximize Your Medicare Newsletter to Jae’s Corner because there was more to say, to a wider audience, than for those that are 64.5 years old.
Maybe someone should send Chairman Powell one of these, I am pretty sure he could use it.