Are we printing money AND lowering the Fed funds rate?
What is this, 2008?
Replies to: Are we printing money AND lowering the Fed funds rate?
2007.
If you haven't stuffed the mattresses yet, you had better start soon.
No,this is not loose monetary policy. So, it's not 2008. This is the neutral level of rate, deemed
by feds, i.e. the rate neither boost nor slow economy growth. You don't have to believe me. Just go to read a series of statements from feds starting from Jan. of 2019. The neutral interest rate is not a constant depending on many economical and financial variables, finding it is a discovery process. But, by lowering the rate now to neutral rate, I can say Feds indirectly admit its rate increase in first 2 years of Trump presidency is too fast and too much.
The real issue is, as I mentioned before, Fed held 7 years of near-zero rates in Obama presidency. That's way too long and they missed opportunities to raise rates. This 7 years of near-zero rates created wealth for a few ( via inflated stocks) and hurt small potatoes who depend on saving and pension plans, therefore widened the wealth gap.
“neutral.” Good one.
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I guess they didn't appreciate how fragile the Trump economy was.
2.5% sounds pretty neutral to me, if not accommodative.
They target inflation & unemployment, so-called the Fed’s dual mandate, not GDP, to change rate.
The dual mandate is the law made by congress. Whether or not you agree with the law is another thing. For instance, I don't agree they should target unemployment. But It's economics 101 in reality that Feds don't target GDP to adjust rate. Of course GDP, and many economic metrics as references would be considered by Feds in making their policies.
Sounds a tad low even for the greatest economy ever according to Orange.
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You have a problem with that? You must like socialism and the squad.
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You sure do connect a lot of things in your brain.
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Two different troubles ‘08 was a mortgage and derivative collapse. This is a debt crisis.
As long as the world buys our debt we are fine. When they don’t we are screwed. But that would mean there is a better alternative to the US. I don’t see that on the horizon unless you do.
They are both debt issues
You cannot sustain an economy of 300 million people off of structured finance and government jobs. The entire West is nothing but a ponzee scheme of excess spending and overly generous welfare states that is ready to collapse.
Thanks, but that is lost on people like him.
We staved off 2008 by the skin of our teeth.
Don’t think we shall be so lucky the next time.
He reminds me of the film flam artists of the late 20’s. Yeah, they will just keep buying our debt forever.
People like me? That’s racist. One thing you are right about. I always come out on top
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I didn’t know that delusional dummies were a racial class. Learn something new all the time.
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Well you know your own kind.
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Hank that’s depressing. But it’s not that bad. We are Rome. No one close to us.
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I would hope so. 2008 was a complete disaster.
The question is what tools will be left in the box if we do have a recession?
I don’t believe the Fed should have lowered rates. Our economy is good
Low unemployment
Today record housing starts
Real income is up over 3% annually
Inflation under 2%
We pay almost a 2.4% on 30 yr bonds other countries negative returns
Dollar too strong, hurts exports, helps US tourists
Manufacturing index is higher
We are increasingly energy independent
The China tariff thing hurts, but them more than us
I just wish we could get an infrastructure bill passed
And yet, some of them wanted to lower a half point.
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Orange wants negative rates.
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For different reasons.
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Yeah he’s wrong
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No shit and not just on that.
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You are disingenuous. You take acceptance and double up on your point. You lack the ability
to reach consensus. When one side agrees you run around like you won something. Can’t believe that helps your law practice. Because sometimes it just makes you look like an asshole.
Sigh. It simply shows he has no clue in this area. We have e no consensus on that and it’s a valid
point.
I know you don’t like and can’t refute it but it shows his complete ignorance.
We didn’t need to but fine.
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Growth predicted at 2.2% this year, 1.9% next year. Manufacturing is in recession.
If that was Barry, you would be crying like a little bitch.
They are lowering it slowly to try to stave off recession.
Wouldn’t need to even think about doing it in a truly strong economy.
Only thing propping up the whole thing is consumers spending far beyond their means and lots of McJobs.
That’s because you don’t know we are in a trade war with China and Obama had 0% rates
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That makes it all good then. He also didn’t inherit a Great Recession. That was yer two other pals.
He took over an economy that was at least performing at a middling rate and despite an irresponsible tax cut, has kept it right there.
He’s a moron that has always failed in everything but selling his name and lies to people like you. He couldn’t run a business of any size and can’t govern a nation.
OK the community organizer saved America. Thank you. Good bye.
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Did Frank say that?
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Uhm nooooo, but the reality show king sure isn’t and is making it worse genius.
Look at yourself, denigrating Barry while supporting the most unqualified prez ever. You have no ability to self analyze how stupid you look with shit like that.
How is he making it worse?
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Trade war, uncontrolled spending, irresponsible tax cut, chaos in policy that keeps the markets
guessing and uncertain.
.
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Geez that is almost as low on average as Obama's. And his manufacturing was non existent.
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So about the same, right? Yet you bozos think he’s done a great job.
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Again rates are above 2.5% and we have trade wars. What don’t you understand?
Are you happy that the world took advantage of us during Clinton, Bush, Obama. I wasn’t.
The world took advantage of us huh? What a whiner like your leader.
We took plenty of advantage under Clinton and Bush, lived like hogs and Barry got stuck with the bag.
the trade war is ruinous and stupid. We have had this discussion and there are better ways of handling them long term.
Stay in your lane. What companies do you work as chief counsel. I’m looking to make money.
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Then stick to that and stop pontificating about things you know nothing about.
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Mortgages aren’t debt? Derivatives didn’t operate off of that debt?
Keep deluding yourself until this bubble bursts.
What are you crazy. What are mortgages? They were package and sold as derivatives.
Mortgages are accumulated debt that homeowners owe to the bank. That’s called debt. Right?
Some of the mortgages in ‘08 were garbage backed by Fannie and Freddy and the ratings agencies. The banks and investment houses knew this. They package this crap and sold it as performing when it wasn’t. Watch The Big Short.
The SEC and Fed were asleep at the switch. This current deficit debt funding is there for everyone to see. The Fed just did three straight days of funding successfully. When that doesn’t go well we are screwed. Do you understand how this all works?
Stop being thick. It all comes down to packaging and selling bad or to much debt.
At some point it stops being bought.
That’s what happened before.
That is what is going to happen here.
It will happen when the money printer isn’t enough to infuse liquidity into the market.
The same genius’s like you were saying all was well until 2008.
You don’t read well. Is housing going up 25% annually? That’s ‘08. Don’t
argue what you don’t know. It was a real estate bubble. Will you at least agree with that? People lost their homes, jobs, Wall St firms closed. Got that?
This is different. The US is running $1.2 trillion dollar deficit. But the world keeps loaning us the money. Why? Because everywhere else is shit. Please give me a country you would invest in besides the US. China or the EU?
Stop arguing just to argue. Read a freaking financial newspaper and see how much money is flooding into the US. Why?
You don’t think well. Consumer debt is OUT of control. It is propping this entire house of cards up.
Bankruptcies and mortgage defaults are steadily increasing.
Stop being a jackass.
Our debt isnt going to be bought for very long.
And we are having problems finding the dollars to pay for the bonds,
Good god man, I hope you aren't a financial advisor.
Link: https://www.marketwatch.com/story/more-people-filed-for-bankruptcy-per-capita-in-these-5-states-in-july-and-there-was-a-5-increase-nationwide-2019-08-06
You should tell the rest of the world. They are not as bright as you obviously. They keep buying.
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Until they stop and everyone but the snake oil sales people go broke.
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