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It is a good point that if there’s another recession soon, the fed can’t do much about it with rates so low. Still I’m not sure it’s a good time to enter the market, but I wish I was already in it (and I’d leave it there...).
in effect everyday , each investor is making the decision to REINVEST the money and keep it in play ..any gains are already all their own money ..there really is no difference between investing new money or leaving the old money in play .... in effect we are all buying in everyday as the new trading day starts
Freaking Fed. If they cave to Trump and start doing 0% rates again, what will be left in their toolbox when a real recession happens again?
I mean, it'll be great for me; my investments will make money and I'll refinance the mortgage... But WTF?
Actually on the news, CNBC news, Janet Yellen was blamed for not raising enough during her terms, she caved in to Obama, now the problem is left for Powell to solve.
i don't see political manipulation at all . i see a weakening economy with gdp forecasts now under 2% ... what i saw was the fed get to aggressive ... if under 3% gdp was the best we got from trillions pumped in , in my opinion the fed overshot what was needed .
I don't think the FED was aggressive enough. It was way too slow in raising rates. Problem is if the economy goes into a major downturn (which it will eventually), there is very little room for monetary policy to work. Trump should not be making comments about what the FED should and shouldn't do.
Freaking Fed. If they cave to Trump and start doing 0% rates again, what will be left in their toolbox when a real recession happens again?
I mean, it'll be great for me; my investments will make money and I'll refinance the mortgage... But WTF?
negative interest rates. A some point they will be paying borrowers to go into debt. (An even surer sign that you shouldn't). They will call it a "finance incentive" or something stupid like that on car and home loan commercials.
I don't think the FED was aggressive enough. It was way to slow in raising rates. Problem is if the economy goes into a major downturn (which it will eventually), there is very little room for monetary policy to work. Trump should not be making comments about what the FED should and shouldn't do.
well we will disagree here as far as whether the fed was to slow or not ... personally neither of us are qualified to even have an opinion on that . neither are most of the talking heads who monday morning quarterback and really don't know a fraction of what is needed to evaluate such a complex decision .
They don't really know either half of the time (or worse). It is all educated guessing. When they raised the target rate to 2.25-2.50 in December it cratered the stock market nearly 20% and signaled them to back off. That must mean there is simply too much debt outstanding that can't be serviced with "normal" rates of 4 or 5%. Peter Schiff said it already: "they checked us into a one-way monetary roach motel by keeping rates at zero for 7 years and now essentially they are trapped."
They don't really know either half of the time (or worse). It is all educated guessing. When they raised the target rate to 2.25-2.50 in December it cratered the stock market nearly 20% and signaled them to back off. That must mean there is simply too much debt outstanding that can't be serviced with "normal" rates of 4 or 5%. Peter Schiff said it already: "they checked us into a one-way monetary roach motel by keeping rates at zero for 7 years and now essentially they are trapped."
I think we're at the point where 4-5% is no longer "normal." That would be "high." 2-3% is now "normal."
Actually on the news, CNBC news, Janet Yellen was blamed for not raising enough during her terms, she caved in to Obama, now the problem is left for Powell to solve.
Probably true. Doesn't make it any better, though, and Powell does not look inclinced to solve it.
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