r/wallstreetbets 1d ago

Discussion 5 rate cuts šŸ˜®

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u/clapsandfaps 1d ago

Honestly do they have a choice?

Not to be a doomsayer, but with rising inflation (again) due to tariffs, probable layoffs due to reduced demand on american goods due to tariffs and combine that with high interest to fight the self-induced inflation, people will default, a lot. Even domesctically produced goods will be hit with inflation due to potash tariffs.

Iā€™m seeing in my unqualified crystal ball, a depression happening.

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u/Bcider 1d ago

Yes, let it crash. Hard reboot the economy. Kicking the can since 2008 has screwed everyone.

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u/-gawdawful- 1d ago

That was nearly 20 years ago. There is no hard rebooting the economy. The entire economy is based around the federal government propping up loser businesses and insanely useless tech enterprises. There is no rebuilding this house of cards.

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u/IHateLayovers 1d ago

The government isn't propping up tech. Big Tech prints money to send to DC for DC to buy flyover state votes.

Everybody was all doom and gloom about tech when interest rates rose. No, Mag 7 became a thing and while non-tech companies stagnated you saw Apple bust past $3 trillion. Even in our "high" interest rate environment you see OpenAI reach $300 billion valuation without government nonsense like Farm Welfare.

The past 5 years has proven it. Interest rates up? Big Tech. Interest rates down? Big Tech.