Fed to *RAPIDLY CUT* Rates to ZERO | MAJOR PANIC

Here you go, Jack.

Ah, well, it's time for an update,

folks. The Federal Reserve is pissed.

Not only is the Federal Reserve pissed,

but they're telling us they're prepared

for a massive bailout of the economy. In

this video, I'm going to give you a full

breakdown of exactly what's going on,

where the cracks and the cockroaches

are, and what you need to know to be

prepared, as well as what to watch. I'll

give you everything just like I do every

single day. And in order of today, the

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what happened today was nothing but

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quadruple bounce this morning and

perfect 1120. We're at 111950

in the after hours went as high as

11:34. And then of course, if you look

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lifetime access. So, with that said,

let's get into the Federal Reserve. The

Federal Reserve is preparing for a

massive and rapid bailout of this

market. This is not surprising and it's

exactly why with my startup, we're

trying to hoard as much real estate as

possible because we expect when rates

fall, we're going to be in a beautiful

and delicious position. Consider what

Lorie Logan wrote this morning at the

Federal Reserve Board of Dallas, which

Nick T picked up on as well. The

following were Lorie Logan's comments.

She says, "We stand ready to buy more

assets if necessary. Even though right

now we think it's difficult to cut

again, and we actually prefer to hold

rates steady, we are prepared to cut

rates rapidly if necessary." Now, Lori

Logan gives us an exact outline as to

why they would rapidly cut interest

rates, and I'm going to give you that

exact outline of why they would rapidly

cut interest rates. But what you really

need to remember, oh, I'm falling apart

over here.

But what you need to know is that what

all of the Federal Reserve officials are

quietly paying attention to are the

disasters of things that are happening

like the following. Take a look at this.

Just on Wednesday, there was a

consortium of multiple brands under the

company named Renovo Home Partners that

abruptly ceased operations. Now, what's

remarkable about nine different

consolidated private equity rolled up uh

contracting companies like Reborn

Cabinets, Remodel USA, Allure Home

Improvements. What's remarkable about

them all of a sudden shuttering their

business and sending emails to their

employees that they are regretting to

inform us that we are immediately

ceasing business operations. What's

remarkable about all of this is that

this company is backed and funded by a

company that's public known as Black

Rockck TCP Capital Corp. Which literally

on their balance sheet shows that

they're upside down by over 8 1.5% on

the actual acquisition costs of their

assets. They're doing so poorly that

they're literally not taking management

fees. They are waving their management

fees. Guess what this is, folks? Another

example of private credit going poopy

dupy. Another cockroach. And nobody

knows cockroaches quite better

than Georgie.

Tryolor first brands. Black Rockck

losing billions on a broadband and

telecom deal with not only well

broadband telecom and bridge voice uh

through what they call fraud. Carvana's

circular financing. Now, Renovo homes

going bust, all happening in a span of

weeks of each other. It can only be a

spooky surprise that's lurking. The

Federal Reserve is prepared to rapidly

cut rates. That's what Lorie Logan tells

us and I'm going to break down what

Bostic Hammock say, as well as the

conditions that Lorie Logan gives us for

a collapse in rates. Now, I want to also

mention that I think it's pretty clear

why my startup just raised nearly $1.5

million in just the last 31 days. This

is probably going to go down as our

largest fund raise year to date on a

monthly basis. But I don't think people

are looking at my real estate startup as

wow, we're about to launch a really

amazing artificial intelligence

platform. I think what people are

looking at is they're looking at our

real estate and they're going, "Wow,

they're actually a startup that's backed

by real estate and they're only valued

basically by their real estate valuation

at this point based on the valuation

they're using from 2024 to fund raise

now, which means you get a 5% yield

investing in house hack, also now known

as reinvest. That's our new doing

business as it's the same company, not a

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offering circular of course over at

househack.com or in reinvest.co

same company. This video is not a

solicitation but here's the scoop. Lori

Logan tells us the following. Right now

the unemployment rate is stable. We know

this. We know that the concern in

markets right now is a sudden shift in

the beverage curve or the beverage

curve, however you want to look at it. I

don't actually think it is the

Hindenburg omen that you need to be

concerned about. I also don't think you

need to be concerned about the return of

Michael Bur. Michael Bur himself says,

"Sometimes we see bubbles. Sometimes

there is something to do about it.

Sometimes the only winning move is to

not play." This is very much a throwback

to what Warren Buffett tells us that the

hardest thing for men filled with

testosterone to do is nothing. That

means sitting out the bubble. This is

what Michael Bur is trying to leverage.

She's trying to argue that while we

might be in a bubble today, it's really

difficult to go in and try to short

something as powerful with as large of

pricing power as a company as Nvidia.

Especially since Jensen just finished

his massive over billion dollar share

sale, loading and lining his pockets

with the profits that in fairness he

rightfully helped build. But a company

that takes 56 cents out of every dollar

to the bottom line, you got to give them

some credit, too. It's pretty damn

impressive. So, while it doesn't feel

bubbly like it did in 2000 because we've

got some massive earnings, there are

definitely a lot of folks arguing we in

a bubble. Don't kid yourself. This time

is not different. But I personally don't

think that the Hindenburg omen is any

bit of a concern. If anything, it should

be a sign to you that the dip should

just continue to be bought. After all,

if you look at the Hindenburg omen here,

every single red time, you'll notice a

very consistent well outcome. Every

single post red line decline or signal,

you ended up with a higher stock market.

Almost always one year later was the

stock market higher following the

triggering of the Hindenburg omen. So I

would venture to argue that this signal

is essentially worthless. I would argue

that is much what is much more of a

signal, but it's much more of a slow

signal is the level of the 27 weeks

unemployed individuals, which of course

we're not actually getting this

statistic anymore because well, the

government is shut down. But when the

government reopens, you'll probably be

walking into your most dangerous

catalyst. It's not that the government

is reopening and spending our money, but

rather it is the return of government

data. I hate to say it, but the increase

of the 27we unemployed trend is likely

to continue. And I personally believe

that we are not in a fall offthe cliff

economy. Right now, we are as what the

Fed calls us stable. I believe we're in

a slow bleed. Not in a soft land, not in

a hard land, not in a recovery. We're in

a slowble bleed economy that eventually

will result in recession. Now, hopefully

not, and I'm not by any means saying the

party is over. In fact, we have 10

stocks that we're buying for the next 10

years in anticipation of this. You get

those in the alpha report. Remember, you

could use coupon code pennywise. The

last bare bull scale, which I should

update this because it's a little higher

now. We're at about a 5.9 right now, but

I'll update this and you can see this

always updating over at mekevin.com/data

totally for free. But anyway, you'll see

my not only my taco scale here with

Donald Trump, but you'll see my bearbull

scale uh as well as some other useful

links like the Meet Kevin app where you

can get the daily wealth every day and

other posts. Now, what I want you to

think about is how important what the

Federal Reserve just said is. Lori Logan

tells us that the labor market is in

balance, that the unemployment rate at

4.3% is only up slightly year-over-year,

and therefore, we're not at the moment

seeing any cause for concern to cut

right now more rapidly or to promise a

cut in December. This explains why the

odds of a December rate cut only sit at

68.3%.

We're not seeing this widening gap

between the number of jobs available and

the number of people who want work

because immigration has plummeted,

basically jolts close to 1. This means

with Lori Logan estimating the break

even unemployment rate at 30,000 jobs

per month gained, Powell closer to zero

jobs gained per month, we're not

actually in a place where the Fed feels

compelled to rapidly cut rates right

now. Uh the concerns though are the

following. Number one, in a low hiring

environment, the market may not be able

to absorb the layoffs that occur. Lori

Logan is very cognizant of vida layoffs

that have been announced at companies

like Amazon, but they haven't actually

shown up yet. So, will the economy be

able to absorb these layoffs or not?

We'll have to watch very closely because

if our weekly ADP employment numbers,

which now come out on Tuesday, I'll be

covering them every Tuesday. If those

numbers start signaling that this

economy is not capable of absorbing

these unemployment uh or these new

layoff numbers, then we should start

preparing for even more rapid rate cuts.

Again, my thesis is that by 2032, we'll

not only be back at zero interest rates,

but we'll actually have such little

inflation that the Federal Reserve will

be actively running the money printer

again, printing money to try to

stimulate anything. And the people who

are going to win are the people who are

exposed to assets, especially leverable

assets without margin like real estate.

Now, if these issues materialize, Lori

Logan tells us that the Federal Reserve

quote will be able to closely monitor

and address the issues promptly. In

other words, if there's any evidence of

these issues beginning to materialize,

Lori Logan suggests that the Federal

Reserve would be willing to rapidly cut

rates. That is a way of supporting the

economy very promptly. Oh, this is quite

interesting. Face ID works just fine.

It's almost like nothing's changed. Huh.

Put that on do not disturb. How

convenient. Uh anyway, basically Lori

Logan is telling us, let's fight

inflation now, but if the beverage curve

normalizes and the unemployment rate

shows signs that it's about to

skyrocket, indicating that we've fallen

into recession and we may already be too

late, we can cut fast if we need to.

Now, all of the private credit disaster

that we're already seeing, not

justricolor, Carvana circular financing,

the slowdown in Vegas, things we talked

about this morning, Carvana circular

financing, by the way, you should watch

that because if Carvana Stark falls, if

if Carvana stock continues to fall, it

is going to be a sign of a lack of

liquidity for private credit because of

what the Garcia family is doing. That

means as Carvana goes down, we believe

that private credit is going to be even

less available in the cycle of a

downturn at Carvana stock will just be

beginning. We will probably lose 50 to

80% of the market capitalization of

Carvana in the event of a private credit

turn downturn, if not even worse.

Anyway, more on that in the video that

we did on Carvana this morning. You're

welcome to check that out. But

basically, private credit will likely

shake the boots of the JP Morgans, the

Jeffre, and the banks all across the

board. After all, it was the

International Monetary Fund that just

told us 90% of the lending going to

these non-bank financial institutions

are coming from the biggest banks in

America. So, while we think the banking

sector is protected, let's be real. Even

the Federal Reserve realizes we may not

be. Now with that said, understand as

well that Federal Reserve member Bostik

tells us that right now every meeting is

live. And while we don't need to make

forecasts, we have to consider that

right now we need to focus on inflation.

And while we took an insurance cut,

Bostik didn't want to go for a cut

either. He said eventually he got behind

a cut, but that was almost reluctantly.

So Bostic was reluctant to cut. Schmid

was reluctant to cut and vote voted

negative. Hammock was reluctant to cut.

though also voted for the cut and Logan

was reluctant to cut, though also voted

for the cut. That means you've got four

members here that are all telling you

there is no consensus within the Fed.

They're concerned that core services

inflation is too high. They're

open-minded about labor market softness,

but they're going to look at that weekly

data to see if they need to do anything.

Other than that, they're going to solve

liquidity stress by turning off the

money vacuum cleaner. That's ending QT.

And for now, they'll focus on inflation

until there's a sign they have to do

anything in the labor market. Which

means it's entirely possible that we're

just going to continue on this upward

trajectory for the NASDAQ, for Nvidia

for the foreseeable future, which is not

to say go all in on the market now. What

it is is to say that you should be

cautious and you should be prepared for

a change in the labor market. But until

we actually see a meaningful sign of

change in the labor market, we might be

good for now. Now, of course, subscribe

to the channel to get more updates. Use

that coupon code at Pennywise, which

will expire tonight. Happy Halloween and

good luck out there. If you're

considering diversifying away from this

crazy market, remember you could always

go to househack.com.

You could also go to reinvest.co.

Remember, it's the same company. And if

you have questions, I will personally be

helping in email over at

>> email iriroushack.com.

>> And again, remember, I could not be more

grateful that this is probably going to

go down as one of our largest

fundraising months this year. Oh, we're

I think we're knocking on the door here

of $1.5 million raised. We're going to

put this to great use not only into our

artificial intelligence and research and

development spending the Blackwell chips

that we have and additional

infrastructure for the artificial

intelligence product that we are

launching but also towards backing our

company by more sound real estate more

wedge deals so that way we are insulated

without any bank debt should there be

any concern in the market. There's a

reason I personally have not a dime of

debt. No mortgage, no margin debt, no

credit card debt, no personal loans, no

lines of credit, nothing. This is not

the market for debt.

Huh.

So,

with that said, [music] I need to get to

the children. [laughter]

Why not advertise [music] these things

that you told us here? I feel like

nobody else knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Pra there, financial analyst and

YouTuber. Meet Kevin. Always great to

get your take.