Mega bear at least on social media. He's i'm talking about batman here here michael berry christian bale. Whatever you want to call him. He is now once like firing it up on twitter.

Because it seems like his callouts granted. I would argue he was a bit early are kind of coming to fruition. And he's really bagging on the fed and kind of the us government and i'm not really necessarily. Saying that he's wrong on that one big short investor michael bury.

Called out the fed for not shrinking its balance sheet. Enough in june. And compared its love of stimulus to a drug addiction. Now the thing.

I really want to explain here not shrinking its balance sheet. Enough in june. So obviously now that june has concluded and people were able to dive into the numbers in july. This is not good.

This is not good at all so we know that we've gone from quantitative easing to quantitative tightening. So instead of buying buying buying previously at one point we're buying 120 billion dollars worth of stuff the fed was whether it's bonds treasury bonds mortgage backed securities they were doing a lot 120 billion a month they were buying like a drunken sailor when we knew they had to switch to sell it's called balance sheet normalization you're running off your balance sheet. You got to fix. It if you're going one way too hard to buying buying buying well you have to fix it to bring yourself back to neutral.

You have to balance out your balance. Sheet. Well the plan was june july. August we're going to do 475 billion a month ease it into it and then starting september.

We're going to double up to 95 billion you're about to see that in. Month number one when we were supposed to hit that 50 goal at 475 billion for the month. The fed did not hit that they didn't even come close to that 50 force and you saw what happened to the s p 500. Imagine what happens when they hit that imagine what happens when they hit their 100 target.

This was the craziest thing. I read this morning. So this is from batman's twitter account drugs are hard to kick fed was supposed to sell 30 billion treasuries and 175 mortgage backed securities per month starting in q1 for quantitative tightening that's the 475 remember. Which is the 50 target september.

We're supposed to double that up during june. The mortgage. Backed security holdings rose almost 3 billion and treasury holdings fell less than 10 billion. The mortgage backed security holdings rose 3 billion.

We're still going in the wrong direction to be fair with the treasury holdings that fell less than 10. But we were supposed to hit 30 so even call that 10. We were nowhere close to the goal nowhere close to the goal of quantitative tightening. Which tells me that the markets that sell off that's not even necessarily from some absurd force from the fed yet because they haven't really done their selling this like i said is the craziest thing i read to kick off the week.

The month of july. This is not good we're already seeing the stock market. The economy shaking a little bit and the fact that they're not actually pulling off quantitative tightening something's going on that i believe the fed knows about in my opinion that they aren't being completely forthcoming with all of us. Batman suites refer to the fed's plan to reduce security holdings by up to 30 billion worth of treasuries and 175 billion worth of mortgage backed securities each month with deeper cuts to follow ie september we're doubling up.

However. The central bank managed less than one third of its treasury target in june and actually added three billion of mortgage backed securities to its stockpile i know this sounds like boring and like like whatever why do i care about this is actually such an incredibly big deal that we are under the pressure the pressure. We're feeling from our economy and our market. We're feeling the pressure and we're not even yet feeling the pressure of like the fed ending on.

Top the fed eventually will have to dog pile onto this situation ie in my opinion making it worse like we're gonna see more downside. And i thought we were already living that in june. I'm like okay. It makes sense to be a little bit bearish.

It makes sense that things are going down. But apparently everything we felt like the central bank of the us. The fed has yet to actually dog pile on which is not good.