The Fed Just Crashed The Stock Market

The stock market has fallen 6% in 2 weeks and the US economy is under pressure.

The Fed has held interest rates too high for too long and we are now seeing the ramifications.

Unfortunately this was all very obvious and avoidable, but the Fed broke the economy and broke the stock market once again through incompetence.

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50 Comments

  1. 7:44 I think gaming is a bit quieter now because many of us bought new graphics cards during COVID and haven't needed to upgrade yet. I’m still using my AMD RX 5700 XT from 2019, and it works great for most games.I believe the next big thing will come when large language models (LLMs) or some other form of AI models are integrated into games to make it more realistic or generative, which will likely require more powerful hardware. That could really boost interest in graphic cards again. Just a thought!

  2. Sasha, have you considered a Deflationary spiral, (assuming they don't start printing), is part of the plan? You should read 'the great taking' and do a video on it. Fascinating theory the author has.

  3. But in a monetary system such as ours isn't it healthy for periodic tightening of the monetary supply, so as to cleans inefficient allocation of resources from our economy. As Warren Buffet supposedly says, “Only when the tide goes out do you learn who has been swimming naked.” If the Fed dropped interest rates too soon, and the tide never went out, there would be no cleansing, and this would introduce massive inefficiencies.

  4. A lot of it, I think is done on purpose to keep the markets fluctuating more than it would if certain things were different and they cared about actual people and not just making $$… idk…

  5. This is the first video of you that got recommended to me. So in your YT history your videos have been doom and gloom videos for the last 2 years. We had one of the craziest bullruns in history in AI and you missed out and all of your subscribers too.
    Perma bears are the worst.

  6. So tech AI is full steam ahead for the Cloud based hyperscalers such as AWS and Intel suck cos they do not make the right kind of chips. When AI comes for lots jobs, lots of people will not be able to buy anything, which could make this kind of interest rate discussion totally redundant. Or am I being overly pessimistic? Its hard to predict what could happen, but Sasha I think is right that the Fed needs to make sure that it is not ignoring the possibility of deflation as far as it can.

  7. Yellen has about 300-500 billion in liquidity she’s about to inject into the economy so hold tight for a month and things will start to recover

  8. The FED risks reinflation by cutting rates, even just by mentioning rate cuts. The light inflation in winter/early spring is because the FED announced 1-2 rata cuts and the market assumed it was going to be 6 rate cuts.
    Now I'm thinking rate cuts will come but for the wrong reasons: recession is coming.

  9. You understand that the FED has an army of PhDs in Economists, no? Have a guess what they do all day every day: yes, analyzing all that data you have cited. You really think they aren't able to do this? You can be right though but you need to honestly ask yourself why you are that much smarter than an army of economists.

  10. to the feds defense, the economy is so fictional that it becomes unprofitable at 5% interest rates. Imagine a world where real business have a higher margin than 5%

  11. It is all by design. They want the s-word to hit the fan on the next guys watch not their's and that's why they have kicked the can down the road so much. The stats and figures being quoted by the government and central banks are all heavily manipulated anyway and cannot be trusted. Inflation is a lot higher than being reported. The UK population is really 80 million not the 68 million reported in government stats. That is why we have so many problems today.

  12. I see you're filming from your nuclear bunker again. Also no, the FED decision making is political. The FED are playing politics, just like they delayed raising interest rates late until after the decision to re-employ the person for another term, now it's a matter of helping Cameltoe Harris get in, or else. This isn't incompetence, it's a person trying to keep his job. Jerome Powell was nominated in 2022 as chairman by Biden, so why would he raise interest rates in 2021 knowing that he needed to keep his job…

    We need to ditch this idea that the FED are stupid, they aren't stupid, they know how bad it is, but at the same time these are real people who want to stay employed.

    You're right that the FED is reacting slowly, but i don't agree that it's due to stupidity.

  13. So the fed is going to sit in their chairs surrounded by fires and wait for their next scheduled meeting? Can’t they like schedule an extra one or something if they think this makes them already confident enough 😂.

  14. GDP's already negative, the housing market's already crashing (see all-time high number of price reductions without any sales still), all-time consumer credit card debt, unemployment is skyrocketing and will surpass 2009's 10% peak. Homes and stocks will crash 60%. It's literally 3rd grade math. It was always inevitable. Already seeing it in every single asset class other than the Crypto market ….I've been engaged in active trading and managed to grow a nest egg of around 2.3Bitcoin to a decent 24Bitcoin….I'm especially grateful to Francine Duguay, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

  15. It’s not even about not having the money, it is just not worth the price. Your example with the car, why the fuck would you buy a VW Golf now if it costs 46k euro, it used to be 25k. A pack of Lipton ice tea in NL, 1 liter 3,40 euro. It is fucking madness

  16. I think that even if FED cut rates right now to 0% the recession would be in any case inevitabile.
    It will be a race to cut the next 6-12 months. The only question is this: how deep and long will this recession be?
    Can the lenght and the deepness of the 10/2 years treasury curve predict anything? It has been the deepest and longest inversion ever i think.
    Sasha what do you think?

  17. Fed knows exactly they needed a recession. It is way better than a reignation of inflation. You should be blaming the goverment which send checks to everyone

  18. I believe they’re intentional in what they say and do.
    The issuer and buyer of US Debt!
    The world debt markets are much larger than all the stock markets in the world.
    The US adding 3.5 Trillion annually to the $35T.

    Current policies have crushed American Energy.
    The European green-lunge approach should have been a warning.
    The infrastructure and technologies available are not capable of delivering the required energy for inexpensive, reliable energy.

  19. MAybe the times of superstimulus with zero rents are over. They dont dare to push it any further after the saw the inflation. The politics moved towards a concept of "more money never cause inflation" and "inflation can solve growthproblems" until inflation became a big problem and hard to control. Keeping rates low for so long time has a cost.

  20. Your story about inflation is not completely correct. People are not rational like that. People want things and therefore buy things. A coke is cheaper in the supermarket then in a gas station nut people stil buy coke at the gasstation. Deflation would be a blessing to reduce some of the insane price bumps of the last few years.