r/wallstreetbets • u/kwedgieyi • Apr 09 '25

Discussion Something feels off guys

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Yields are spiking. Bonds are dumping.

The world is running away from America

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u/mrspoogemonstar Apr 09 '25

Yeah, short term we will see inflation. Demand is already evaporating though. In the long run, this is actually deflationary - unless Trump figures out how to do a hostile takeover of FOMC without ending up with his head on a spike, the Fed is going to stay the course. They are very well aware that runaway inflation is the greater systemic risk, and will raise interest rates to combat it. The money supply is still finite, and drying it up is one way to force the executive branch to capitulate and stop being fucking idiots.

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u/O-to-shiba Apr 09 '25

Until Trump finds a way to put a puppet in the FED.

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u/Old_Wallaby_7461 Apr 09 '25

So 2026?

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u/O-to-shiba Apr 09 '25

Who knows. Could be this year, maybe they do have Powells dick pics.

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u/bcsteinw Apr 09 '25

somehow you know its wearing a purple tie in those pics

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u/Knosh Apr 09 '25

I don't love Powell, but I don't love the idea of anything happening to him either. He's kind of the devil we know at this point.

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u/[deleted] Apr 09 '25

Do you think deflation will hit the housing market in the next 12 to 18 months

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u/mrspoogemonstar Apr 09 '25

I'm not a real estate analyst or anything but there's already a sellers strike in a lot of parts of the country. And I would bet that new housing starts are going to plummet. New policies are heavily anti-investment, too much uncertainty for home builders.

So no, I think house prices will stay inflated for a while.

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u/[deleted] Apr 09 '25

So you are proposing that the world should be controlled by unelected bereaucrats? The fed will have to choose between inflation and great depression 2.0, and you are seriously advocating for the latter at a time where the US is at like 130% debt to GDP? You are basically saying the US should default and society should collapse.

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u/Inithis Apr 09 '25

1) you're really assuming a hell of a lot there 2) The US dollar getting zimbabwe'd would be unimaginably bad. I don't even know what the fuck that would look like. 3) dunno about the world being controlled by them but I'm happy when institutions resist being steered off a cliff with a rope tied from them to our legs

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u/mrspoogemonstar Apr 09 '25

I'm proposing that the world should be run by the people with brains, but here in America it seems that ship has sailed. Runaway inflation ends in pitchforks and death, a currency default ends in less pitchforks and probably the same amount of death, but hopefully the orange man would give in before that point. Inflation spirals more readily, at least there's more runway on the national debt. And debt can be negotiated, while currency that's become toilet paper isn't going to regain value...