PUL$E: 🚩It's Different This Time

March 20, 2023

My favorite quote of the week,

"It's different this time"

As long as the general sentiment remains, "it is different this time" or that "it can't get worse", we should remain cautious. Especially when over 110 banks have asked the FDIC to increase deposit insurance above the $250,000 threshold

Over 110 banks wrote a letter to the FDIC asking them to extend deposit insurance to ALL DEPOSITS for the next 2 years.

These types of requests probably accelerate bank runs unfortunately.

If the banks’ request is honored then inflation will accelerate much higher.— Pomp 🌪 (@APompliano) March 19, 2023 

As we have said in the last month, once you start the money printer, you can not turn it off. And the Fed just increased their balance sheet another $300 Billion

This is a major problem when despite raising interest rates to 4.5%, and reducing their balance sheet by $1 trillion, the Fed remains far from reaching the target of 6% or below - an issue that continues to stand as one of their biggest stumbling blocks today.

Let it be known, I believe rates are going higher. Do not be surprised by double-digit interest rates.

Keep your powder dry and keep your mind curious because we are far from capitulation.

Now is not the time to be overly opinionated -just see things as they are. However, if you have been holding off on starting a business, buying a business, or searching for of market real estate deals, now is the time to get your ducks in a row, because after every bust is a major Boom.

God Bless,

Samson

ca·pit·u·la·tion

/kəˌpiCHəˈlāSH(ə)n/

noun

  1. the action of surrendering or ceasing to resist an opponent or demand." a capitulation to wage demands"

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