Get ready for the mega-crash?
While rate cuts may sound positive, it signals deeper concerns—like collapsing borrowing, spending, and investment. Historically, sharp cuts have preceded recessions. Why? It shows the government is scared and scrambling to reverse an overreach. The warning signs today mirror those of 2007-2008: rising unemployment, plummeting housing starts, falling home sales, and declining economic activity. Even the Fed funds rate chart looks eerily similar to 2007. H/t @jacobkinge
So this has characteristics of the 2007 crash. On September 18, 2007 (coincidence that today is Sep 18?), the Fed slashed rates by half a point to address turmoil in the housing market. The crash started October 9, 2007.
If the economy is so great, why does it need a crisis-level rate cut six weeks before the election?
Sen Rounds weighed in on X: https://x.com/SenatorRounds/status/1836474236514541822
With the Fed’s announcement today, remember that interest rates have been at a 23-year high for over 14 months in order to fight inflation caused by Bidenomics. At the end of the day, Americans are worse off today than they were 4 years ago due to the Biden-Harris administrations’ bad policies. It’s more expensive to buy a home. It’s more expensive to buy groceries. It’s more expensive to buy gas and electricity.
WSY? Are we headed for a crash?
