John Mauldin's Predictions for 2022

My prediction is the FED chickens out after the first rate hike. We are addicted to negative interest rates. Governments, corporations, Wall Street, and debtors of all kings will react violently when they are raised.

Distortions by negative real rates are now deeply embedded in our economy.

We tried this…


Didn’t help… raising interest rates into the middle teens seemed to help but at what cost. This is why keeping inflation under control is the best policy. Of course with the excuse for a ?leader? we have today… it’s a wonder anything is under control.

And now this idiot wants to defend European Borders while ours is an absolute mess.

Can we respect laws when the ones charged with enforcing them do not.

Completely agreed. The special interests are not going to tolerate watching their net worth decrease.

They don’t really give a shit if wage earners are getting slaughtered by inflation and the homeless population is steadily increasing.

I don’t know, they’re moving up the first hike and changed it to 4 or 5 for the year. Omicron isn’t a big deal…think it’s gonna happen.

Last I heard, 4 rate hikes planned, .25% each one. That is a whopping 1% for the year. Which still gives savers a negative return. Get real!

But stopping asset purchases, as the FED should, will have a bigger effect on rates. Going from 120 billion $ of mortgage purchases a month to none is going to put huge pressure on rates. But they will chicken out on that promise too when the Real Estate agent lobbyists cry enough.

There’s some speculation they’ll go the other direction, a full half point hike. I doubt it, but possible.

A safer bet would be that Hailey’s Comet returns to earth a few years early.