Don't know i don't know how this isn't getting picked up and and discussed by more people but to me. It's no bueno let's talk a little bit about the markets because i guess. That's maybe. Why some of you are here.

Global stocks rise. After the fed talks tough on inflation. As oil studies. After sliding thanks to recession fears.

So let's get into some of the interesting things remember yesterday wednesday. We got the fomc meeting minute so basically the fancy fancy notes about the last fomc meeting and the fomc meeting is where they raise lower or keep the same interest rates global stocks rose thursday after the federal reserve reiterated its commitment to tackling red hot inflation i love the adjectives that they like throw into this while oil prices studied after falling as investors continue to worry about the risk of recession. So we actually saw that live two days ago. Oil just out of nowhere started coming down down down down uh right now in pre market oil is currently back above 100.

It's actually almost at 101 a. Barrel but we saw a crazy tank from like 108 down to like 9750. It was really really abrupt obviously that was all related to there was concerns about demand destruction of if we go into a recession. Just there's not going to be as much demand obviously.

It's coming back a little bit the big thing is the second paragraph remember. Jerome powell. The chairman of the fed has continually told us over and over and over again that all this just insane. Honestly.

Now the more i'm thinking about it uh. Hey. Don't worry about it we can we have inflation under control. There's not going to be inflation okay.

There's inflation. But it's transitory. Okay yeah. No inflation it's probably not transitory.

But we're totally not going to hit a recession and we're like this 75 bits like not gonna happen all right we're gonna hit you with a 75 bips rate increase but like it's gonna be super super rare and like honestly i wouldn't worry about it well we got from the meeting notes that most likely we're going to get another one in july and september remember. There's no fomc meeting in august. Unless. There's an.

Emergency one minutes from the fed's jew. Meeting indicated that the us. Central bank is willing to hike interest rates by another 75 basis points in july to deter inflation from becoming entrenched. But analysts say investors appear to have looked past that and are still focused on the chance that central bank's tightening will trigger an economic downturn.

So this is important to pay attention to and i implore everyone who's listening to pay attention to this but the thing that i find to be the most crazy and it just seems to not be addressed by anyone right now is we have gone from loose monetary policy to tight monetary policy quantitative easing or to quantitative tightening or so we thought back during the pandemic when the market was ripping higher and higher and higher. It was really because the fed was making buying as in backstopping our economy to the tune of 120 billion dollars a month. They effectively put in just under nine trillion dollars into the. Economy from may of 2020 to may of 2021 40 of the us.

Money supply was created within that one year period. It was nuts they were just a drunken sailor at the helm of the ship. Doing what they wanted to do apparently partying like boris johnson at a christmas party. We have to undo that because it can obviously prompt inflation so instead of buying buy and buying.

It's time to start selling selling selling they were attempting in june july and august those three months to do 475 billion between treasuries and mortgage backed securities and then in september they wanted to double that up to 95 billion and the idea is let's run this out for about three years and we should be a okay. June was supposed to be the start well now that june's over. We can see what the fed actually did and they sucked at it. Remember the number which was the 50 number was 475.

Billion. They did under 10 in treasuries and then they actually ended up buying three of mortgage backed securities so they were still going the wrong way on mortgage backed securities and they weren't even close to their goal in treasuries so they were close on neither and mortgage backed securities they literally like kept going the wrong way and the fact that this isn't getting a bit more traction in terms of media. People aren't talking about it like the focus is like the rate hikes. Which is important i'm not saying.

It's not but i think it's one important paragraph and we have a whole nother important paragraph of this entire thing they've been telling us about quantitative tightening. The fact that at one point we were down more than 20 in the stock market. We're waiting for the q2 numbers to come out at the end of july to see if we're going into a recession and all this is occurring a huge bear market. A huge downturn a huge bare trend and they still have not really completed.

We're not even don't even think about that 95 billion. Number we're not even at the 475 billion. So this downward pressure that we're feeling in not. Only the stock market.

But also the economy that's all occurring before the fed pulls off this extraordinary amount of selling. I i don't know i don't know how this isn't getting picked up and discussed by more people. But to me bueno no bueno me amigo for sure.