BREAKING: Federal Reserve Begins “Economic Reset” – Stocks Skyrocket!
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THE FED CUTS WITHOUT DATA
The Federal Reserve lowered rates for the third time this year, the first-ever cut made without any inflation or labor data because the October jobs report was canceled during the government shutdown.
THE JAPANESE CARRY TRADE UNWINDS
For decades, Japan’s near-zero rates encouraged traders to borrow yen cheaply and buy higher-yielding U.S. assets. Now Japan is raising rates and issuing major stimulus, forcing traders to unwind the trade by selling U.S. stocks, crypto, and dollars to repay yen. That capital drain is historically negative for markets and adds volatility as liquidity tightens.
WHY RATE CUTS CAN SIGNAL TROUBLE
Rate cuts aren’t usually celebratory, they’re historically made in anticipation of downturns. In 2001, 2009, and 2020, markets fell not because rates dropped, but because conditions requiring the cuts were deteriorating. Still, after initial declines, markets typically recover and often rally strongly.
BITCOIN AND GOLD DIVERGE
For the first time, gold is strongly positive while Bitcoin is on track for a negative year. But large Bitcoin drawdowns are normal: six crashes of 50–80% in the last 15 years. Recent declines stem from leverage unwinds, profit-taking, and higher Treasury yields pulling capital away from risk assets. Historically, Bitcoin’s median drop is ~40–50%, and it has never fallen below estimated electrical cost (~$71k), making the current range potentially attractive for long-term accumulation.
THE HOUSING MARKET RESETS
Price cuts are becoming widespread as unrealistic sellers chase the market down. Zillow reports typical cumulative reductions of $25k, the largest ever recorded. Homes owned by low-rate borrowers tend to list high and sit, while realistic sellers (often pre-2022 buyers) price aggressively and move quickly. Median selling prices show a ~7% decline from peak, though some forecasts suggest prices could rise in 2026 if mortgage rates fall below 6% and wages increase.
THE END OF QUANTITATIVE TIGHTENING
The Fed officially ended quantitative tightening, closing the chapter on shrinking its massive pandemic-era balance sheet. They’ll now reinvest maturing assets and begin purchasing $40B in Treasuries to stabilize markets, laying groundwork for more liquidity if needed. Their projections show only slight rate reductions in 2026, falling inflation toward 2% by 2027, and relatively stable GDP.
WHAT THIS MEANS FOR 2025–2026
The Fed is signaling readiness to stimulate further if conditions worsen, even though they publicly expect a stable economy. With shrinking liquidity, high uncertainty, and rapid economic shifts, traditional fundamentals matter most: steady income, emergency reserves, and consistent investing.
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If you really were a student of Economics and History you would know the Federal Reserve has been doing this same thing since its inception. Raising and lowering rates creating booms and busts, transferring wealth mostly to them.
Great video, thanks for making it! You changed your watch at minute 13, but everything else stayed the same. Details…😏
You uploaded this super quick!
Always! I do my best to get these ones out ASAP
Absolute monetary manipulation.
pretty much
that’s the FEDs job
It will improve the Currency to debt ratio temporarily so short term until compound interest kicks it will improve the economy making it easier for people to pay their debts and debt finance. What they ought to do is shrink fractional reserve currency by increasing the federal reserve requirement with at the same time having the treasury department create currency out of thin air and introduce it to the market by buying stuff that can back the currency implicitly for a long time like gold freshly mined, classical furniture that last a long time, other metals and minerals. Most of that stuff can be thrown into the strategic reserve to be used in economic downturns and war.
lmao that’s their job?
It is manipulation 💯, Trump control
It sounds like 2026 economy is still not going to help the lower income. The wealthy im sure it will help.
The wealthy do different things. Everything they have is on the other side of “hard tasks” and multiple failures they endured. Wealthy folks keep their money working as much as possible.
It’s never will, those days are gone.
MIGA
Get your money up. There’s never been an easier time to make the most amount of money for the most amount of people.
@ScoobyTulsaaccurate
Hey Graham one thing I’ve been noticing about your channel lately is even though it’s huge and very successful, you still take the time to respond to comments. That’s something that channels with less than 50k subs don’t even do. I think that’s pretty cool, makes me believe that despite your success you’re still a very humble guy that doesn’t take things for granted and still appreciates every viewer
Totally agree, but i also understand why bigger guys dont watch comments. LOTTA hate to go through for very little or no reward.
Eh? Where’s the skyrocket?
I want my skyrocket, damnit.
My portfolio didn’t. But the stocks “I’m closely watching” all pumped lol
Right lol
From 45k to 400k — what a journey! I’ve never felt more motivated, confident and blessed to be going into 2026. I am super excited today for reaching my goals
this is huge! congratulations in your excellent investments Pal. I’m Amazed indeed
Charlotte Parnell..
You cut rates and print money you get inflation. Just a fact
unless everyone is unemployed from AI :O
It’s a democratic hoax (ie. Affordability).
@BK-gh9us lol no it’s just something they created, 2022 saw over 20% inflation. Wages haven’t caught up.
@waxoncards2489it wasn’t 20% 😂
@GrahamStephan and rate cuts to companies and they reinvest in AI and robotics.
Is “Stocks skyrocket” with us in the room?
lol. his wasn’t one of his videos like a month ago about an immanent crash?
“Stocks Skyrocket” is just his stage name. But he DOES play a wealthy hedge fund manager on tube sites!
lol 😅
At this point Im convinced that this was all planned well before October and the “lack of data due to the shutdown” is just being used to hide reality.
1000%!!!!
Nah dems caused lockdown, I don’t think they want rate cuts
@poiklp5615 they dont want rate cuts because they dont want trump to succeed because if he does good these next 3 years, dems will lose all future elections. These next 3 years will determine the next 15 years i truly believe that.
@ModernMoneywithMarco We’re going to have a massive recession soon all because of Trump’s first term and idiot Biden. Get ready as the next 5-15 years are going to be terrible no matter who’s sitting in that chair in the whitehouse.
@poiklp5615 They shouldnt be any rate cuts honestly. Inflation is going up still. Makes no fucking sense. Yes people are losing jobs but that is what happens when you want to lower inflation.
I don’t know, seems pretty unsurprising that they cut interest rates one more time before the end of the year.
Pump my bags? Yes please.
Stupid is as stupid does. Prices fall in an economy collapse recession .
Yeah, I’m sure the Fed doesn’t have inflation data. 🤣
Trump cancelled reality, just like dictators tend to do
@MrGriff305-d3u Replace trump with government. Not defending the guy, but the root of the problem isn’t a person but the entire system.
@akam9919 No. Trump and his cult are the root of the problem. He’s the first president in many many decades to actually try to cancel economic data. Complete insanity on a daily basis.
@MrGriff305-d3u We get it. Your parents are siblings.
@MrGriff305-d3u Read Mises and Rothbard. The root isn’t who. It’s that our system is built on interfering with property rights and economy in general. The root of the problem is beyond merely who. It is that the system exists in such a way that a single part can legitimize any activity it does as well as anyone else it chooses to.
That part about homeowners with 3% rates is literally my life right now. It is so mentally draining trying to buy a place when sellers are living in fantasy land with these prices. I’m about ready to just give up looking
As someone who has survived many such situations over 65 years, my only advice is patience and accumulating income producing assets to build your wealth. You adapt to the current situation. You either wait until housing becomes more affordable or build up enough wealth to put down a large enough down payment that the mortgage is not the deciding factor. You will also get a lower interest rate because of your better credit rating.
Just keep saving so your cash pile goes up while housing comes back down to reality. Maybe buy gold
The crazier thing is the demand is not making the request sound so crazy.. im looking but I’ll wait for the crash, this could get nasty if Ai bubble is actually a thing
@tylerm2676the crash won’t happen for another 6y. And when it does, assuming you survive it, the oligarchs will outbid you and take all the cheap properties
employment is way worse than they are saying. Hopefully there will be.a whistleblower soon.
Crazy that they think the labor market won’t be hit as hard in the next year or two. They’re relying on old data. Crazy stuff.
When the inaugural mevstake payouts landed they read like a joke-yet they keep rolling in day after day.
Market down… and in 2007 they also lowered interest rates…
We are soooooooooo screwed
House prices need to come down!