Harris County's Imbeciles

[predatorprey]

Government manipulation of bond rates and stock market is reach it's end game. We are seeing this in Japan.

Markets have doubled in about 6 months. Impossible without a massive government QE push that would make even the Bernakie blush. Of course it failed and are currently seeing the result.

Sounds familiar?

10s of Trillions in indirect government buying of bonds and indirect buying of equities are pushing up the stock market into highs not supported by fundamentals. Helping wall street and not main street. And like Japan we cannot raise interest rates because the market is addicted to government crack. We're stuck. Obama didn't start this but he sure isn't making it better.

If you think the economy is healthy you're delusional.

These are all facts.

This doesn't end well and one day maybe not this year or the next we will pay the piper. We are only delaying the inevitable and making it vastly worse in the process.

[Dopo]

Originally Posted by predatorprey

Government manipulation of bond rates and stock market is reach it's end game. We are seeing this in Japan.

Since you know so much about this .... tell us who is supposed to set bond rates if it's not the government

[predatorprey]

Originally Posted by Dopo

Since you know so much about this .... tell us who is supposed to set bond rates if it's not the government

Easy. The market for the most part. There is always government manipulation of rates, but historically not at the scale we're seeing now.

The fed rate is 0 to 0.25 for the last almost 4 years now. Yet the rate moves every day.

Just for the record, monetary policy by Bernanke would be no different if say a president McCain or a Romney was in office. The other stuff, who knows. Could easily be called Romneycare or Mc'Care instead of Obamacare sadly.

[Dopo]

Originally Posted by predatorprey

Easy. The market for the most part. There is always government manipulation of rates, but historically not at the scale we're seeing now.

You seem to ignore what happened before 2008, so I'll leave it here for you

The Federal Reserve and Interest Rates - BB&T Bank

The Fed usually makes several small changes to rates rather than one large change. For example, they raised rates six separate times in the 11 months ending in May 2000. As that happened, the economy started to slow down. In early 2001, the Fed started lowering rates in an attempt to help cushion the economic downturn. It also lowered rates in the aftermath of the September 11, 2001 attacks. All told, the Fed lowered interest rates 11 times in 2001. In November 2002 and the middle of 2003, the Fed lowered rates again, in an attempt to stimulate the economy.
In the summer of 2004, the Fed started gradually raising rates from the historic low levels. Their stated belief is that the economy has started to recover and that by gently moving rates higher, they will be able to keep inflation in check without curbing the ongoing recovery. The gradual increasing of rates has continued from the summer of 2004 through the summer of 2006. The Fed increased the overnight interest rate 17 times before not raising the rate at their August 2006 meeting. The rate remained constant through the summer of 2007. In the fall of 2007, the Fed started reducing rates.
In 2008, the Fed reduced rates several times in response to a weakening economy and to provide additional liquidity as financial markets dealt with uncertainties in the sub-prime mortgage and other credit markets.
In the late summer and fall of 2008, Congress granted the Federal Reserve significantly more authority to deal with the turmoil in the financial markets. This includes purchasing illiquid securities from institutions, making loans to troubled firms, and making investments in banks and other institutions to provide additional capital for their operations.

[Htown2013]

What is preventing them from refinancing the unpaid balance at current interest rates??

[crone]

These same financial consultants advising Harris County politicians are also advising every other kind of government, too.

Schools boards. city councils, MUD boards. If I were an employee of governments, I'd be worried about pension funding.

Oh, well. If they screw up, the taxpayer will make up the loss.

[Mister Mister]

I look at it like this. Everything in this state is taxed on what you buy, and that includes the toll roads. Texas just plain doesn't know how to tax people properly.

Our finances are a house of cards, and this situation was the man with the tablecloth waiting to pull. Alas, he didn't pull hard enough. I always say it's fine and dandy to have our tax system set up as thus, but don't cry about it when this happens. And for the love of crimney, really? Blame Obama? Halliburton or one of the big boys could wave a magic money wand and practically fix it all if they so desired. Furthermore, Perry could stop with all the tax break nonsense avoiding the toll roads in the first place. After all, this is a state/county endeavor.

[predatorprey]

Originally Posted by Dopo

You seem to ignore what happened before 2008, so I'll leave it here for you

The Federal Reserve and Interest Rates - BB&T Bank

I never said feds cannot manipulate interest rates, but you seem to think their power is unending and that the market cannot over power them eventually.

I leave you this.

Bernanke On Soaring Interest Rates: "We Were A Little Puzzled By That" | Zero Hedge

From the words of the Bernanke himself. To sum it up they have no clue what the heck is going on and are just winging it.

End game for keynesian economics is coming. No amount of money can save us from what is coming, but they can delay it with trillions of QE. But as we see in Japan in the last 6 months or so, even that cannot save them.

[Mister Mister]

Originally Posted by predatorprey

I never said feds cannot manipulate interest rates, but you seem to think their power is unending and that the market cannot over power them eventually.

I leave you this.

Bernanke On Soaring Interest Rates: "We Were A Little Puzzled By That" | Zero Hedge

From the words of the Bernanke himself. To sum it up they have no clue what the heck is going on and are just winging it.

End game for keynesian economics is coming. No amount of money can save us from what is coming, but they can delay it with trillions of QE. But as we see in Japan in the last 6 months or so, even that cannot save them.

That's because in America, we think people will do the right thing when it comes to money. Fool us once, shame on you. Looks like we'll be fooled twice soon enough.