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Financial Napalm: The Fed Needed Stocks To Fall. Credit Suisse Strategist Zoltan Pozsar Warned Us Last Month. How Our Response Has Worked Out

Benzinga Real-time News ·  Jun 14, 2022 14:36

Zoltan Pozsar Warned Us

In a post about a month ago (The Fed Isn't Your Friend), we wrote about Zoltan Pozsar's warning that the Fed's helicopters were going to be dropping "financial" napalm on the stock market.

The NY Fed wunderkind-turned-Credit Suisse strategist on why the Fed's helicopters are dropping "financial napalm" this time. $SH $WEAT $TECS $BOIL

— Portfolio Armor (@PortfolioArmor) May 17, 2022

In a nutshell, Pozsar's argument was that the Fed needed a reverse wealth effect (a poverty effect?) to reign in inflation:

The Fed Needs Stocks to Fall

This is what they...

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