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Thoughts on the Fed Put

As I have said before, I don’t think there is a stock level trigger.

But there is a ten year treasury rate trigger.

I think its in the 4-5% band somewhere.

As that is the where danger zone for large scale corporate default begins.

Triple Bs would then yield 6%.

The FED will draw the line at large scale corporate defaults. The triple B crowd must be protected.

The FED doesn’t like rate rises at all because all the debt in the system means it will create real damage.

The SPAC crowd have largely been eliminated.

We have seen the reaction to synthetic QT and it had not been pretty.

Not pretty at all.

Originally posted at Capitalstool. 

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