“The Fed knows it can’t risk cuting rates right now [despite obvious signs of a very weak economy] or he risks the dollar falling off a cliff.”
The FOMC meeting and Policy Statement release is a big event in the financial markets. Every word in that Statement is scrutinized, and CNBC’s Steve Liesman works up a sweat counting the punctuation marks in the Statement. What I neglected to point out is that the statement, “the U.S. banking system is sound and resilient” was removed from the latest FOMC Policy Statement Given the developments related to New York Community Bancorp (NYSE:NYCB) and Aozora Bank (Japan) announced that they chocked on their heavy exposure to U.S. CRE loans. I provide a more detailed look at NYCB’s financials in the upcoming issue of my Short Seller’s Journal. But don’t forget the Mining Stock Journal. I noticed today that several junior microcap project development stocks started to show signs of life. These stocks are where the biggest payoffs reside in the mining stock sector. I cover several that I believe are 5-10 baggers with gold at $2050 and silver at $23.20. The upside is much greater if we get a big move higher in the metals.
Chris Marcus (Arcadia Economics) and I discuss the FOMC Policy Statement and hammer Jay Powell for his brutal dishonesty: