I started this series of posts because we’ve been seeing how the stock market has been doing as of late. We’ve seen a flurry of buying and selling activity after the Federal Reserve announced they’re going to start raising interest rates. We’ve seen the Dow Jones return to its all-time high, as well as a lot of other markets take a dip.
These stock market moves are just part of the natural cycle of capitalism, but it does seem to have been a bit of a rollercoaster this year. While I expect the Fed to raise rates, it will be for a while, and I dont think anyone expects them to keep raising them for too long.
As I mention before, the Fed is currently at the point where it will have to issue a very limited notice. With such a limited notice, it’s hard to see how this will ever make the Fed’s actions more effective (though the Fed would probably do a better job than I have).
I would also like to point out that for the past couple of weeks the Feds have been doing a fairly good job of managing the US economy. The last time I checked, it’s still pretty healthy.
The point is that the corporate stocks the Fed has in its control now have a very long history of inflation, meaning that it will take a hell of a lot of time before they can recover any of their prior gains.
The Fed and the Fed are going to go to the Fed’s rescue on Monday morning. The only way to get them to do that is to go and get the Fed to sell them the stock they have. I’m sure there’s another way to do this.
On the other hand, the fact that the Fed has a large amount of stock in its control is good news for the markets as well. If there’s any company that can grow and become a lot more resilient, then that should help, but it’s not without risk. The stock market can also look like a bubble at times.
Companies often have a lot of stock in their control. If you are a company that has a lot of shares in your control, then you can be the person who can go and get the rest of the company to sell off their stock in order to get the Fed to save it. It is not a good idea to go in that direction, though. The Fed has a great track record at times selling off companies.
Companies that have lots of shares in their control are a lot more susceptible to this than others. If you own a company that can go on a major buying spree, like the stock market. If you are the one person in your company who can get the Fed to sell off all of your company stock, then you are in a good position to get yourself into a lot of trouble. The Fed, under different circumstances, would have the ability to sell off companies and take the proceeds.
The Federal Reserve is a private bank that is a branch of the U.S. Treasury. If there’s a run on your company, the Fed can buy all of your shares back. This is a pretty big deal. A company that is in a good financial position to go on a buy-back spree is less likely to sell. It’s like buying a house. If you buy a house and you’re not able to sell it within a year, you’ve done a lot of damage.