When Baseballs & Guitars Say More Than Pundits
The comments below are an edited and abridged synopsis of an article by Matthew Piepenburg
When it comes to US debt levels, and hence the endgame for US credit markets, rates, currencies and Fed policy, no one wants to see or admit the obvious.
That is, if we were to compare the Fed’s war against inflation to a baseball game, Fed Chair Jay Powell’s odds are about as good as Piepenburg’s Michigan high school team (the Lakeshore Lancers) beating the NY Yankees.
Piepenburg discusses a few of the reasons why: The debt endgame is obvious; the ignored downgrade; a lying chorus; two downgrades, different signals; is Main Street finally catching on; Powell is running out of good pitches; Powell’s endgame vs. Powell’s fantasy; ignoring the ringer (and the math); the hopeful crowd; and the angry crowd.