Weaning Wall Street Off of the Fed's Tits is Going to Be Tough

 “The market is worried about a very fragile economic outlook, as it should be,” said Joe LaVorgna, chief Americas economist at Natixis and former Trump White House economic adviser. “The economy is fundamentally soft: The Fed is going to hike next week, the situation in Ukraine is not getting better and high inflation is cutting into costs.”  

Allow me to translate:  Very soon, the Fed is going to have to put up or shut up.  At the moment, it looks like they are going to be forced to put up.  All of this bullshit year to date has been over a tiny 1/4 point rise in the overnight rate.  No QT has actually taken place.

The treasury market and the mortgage market are both still sucking on lovely Lael's wonderful jugs at the moment and it is only the threat that the sweet mother's milk of free Fed money is going "bye-bye" that is causing all of the bed wetting.  

There is a whole generation of money managers (and by default, "tourist investors") who have never known a time when the phrases "Don't worry, the Fed has your back" and "Buy the fucking dip" did not exist.  All of the coddling and cuddling has produced a generation of money managers who don't know shit about how to stand on your own two feet.  That time may be here as inflation doesn't show any signs of letting up and the US is looking at the possibility of losing the dollar's special world reserve currency status.  I say, "Bring it on".