Jason Burack of Wall St for Main St interviewed returning guest, former CFO and long time corporate executive, Gordon T Long (link) to make sense of where markets will trend as the Fed and other central bankers continue with balance sheet normalization propaganda.
TND Podcast Spotlight: Wall St. For Main St.
Gordon runs a market research site for global macro analysis & analytics for professionals & serious investors, https://matasii.com/
He also runs the Financial Repression Authority http://financialrepressionauthority.com/
Gordon’s YouTube channel about the global economy also has over 5k subscribers and over 1 million views. https://www.youtube.com/user/GordonTLong
During this hour+ long interview, Jason starts off by asking Gordon if Janet Yellen and the Federal Reserve can continue to raise interest rates?
Gordon says that the Fed could possibly do 2 more 25 basis point interest rate increases in the near future before something in the real economy or markets breaks, but that the Federal Reserve and other major global central banks cannot ever reduce their balance sheets without collapsing markets and the real economy.
Gordon highlights how the ECB now has a balance sheet over $4 trillion and so does Japan’s central bank, the Bank of Japan. Balance sheets for the PBOC and Bank of England are also massive.
Gordon thinks the Federal Reserve will have to start rapidly expanding its balance sheet in the near future rather than reducing their balance sheet.
Gordon also discusses shorting opportunities he is positioning his clients for.
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