"People are fed up with zero interest rates"

ASusilovic · Jan 5, 2012

Near-zero interest rates aimed at pushing investors out of bonds and into stocks appeared to gain some traction as 2011 drew to a close, raising hopes that investors are ready to take on more risk.

http://www.cnbc.com/id/45887488

hoodooman · Jan 5, 2012

I see a cause and effect but I don't like use of the word "aimed".

Seems like there were plenty of reasons for the fed to reduce rates and I'm not sure that stocks were even a major one.

MKTrader · Jan 5, 2012

Quote from hoodooman:

I see a cause and effect but I don't like use of the word "aimed".

Seems like there were plenty of reasons for the fed to reduce rates and I'm not sure that stocks were even a major one.

It wasn't stated at first, but Bernanke was bragging about how well small-caps were performing a year ago. It's certainly in their interest to keep stocks propped up as much as possible.

nutmeg · Jan 5, 2012

The Fed can increase the money supply, I don't believe they have a clue where it will end up.

zdreg · Jan 5, 2012

Quote from hoodooman:

I see a cause and effect but I don't like use of the word "aimed".

Seems like there were plenty of reasons for the fed to reduce rates and I'm not sure that stocks were even a major one.

there were plenty of reasons and none of them were for the average hard working joe, but for the bailout of old line banking interests and the politicians.

nazzdack · Jan 5, 2012

Quote from nutmeg:
---The Fed....
----increase the money supply....
----don't have a clue where it will end up.

?..... Duh! In the hands of banks doing the "carry trade". :eek:

Butterball · Jan 5, 2012

In other news: "People are fed up with weather"

oldtime · Jan 5, 2012

if you just bought a house with a 30 year fixed mortgage you won't be fed up when it's paid off

don't worry, rates will go up if anybody can ever think of a good reason to borrow money

why not just borrow money and use it to buy stocks?

The value of your home probably isn't going anywhere for a while, take out a home equity loan and buy the market

after all rates are zero

nutmeg · Jan 5, 2012

Quote from oldtime:

take out a home equity loan and buy the market

I did just that some years ago.I took out a home equity loan to buy another piece of property. Then I thought to arrange the terms of that mortgage with a balloon payment after five years and put the "balloon" payment amount in the market. Sheesh was my wife pissed when I did that. "Balls said the queen, if I had them I'd be King."

MKTrader · Jan 5, 2012

Quote from Butterball:

In other news: "People are fed up with weather"

Despite what the global warming cult thinks, no one controls the weather...not even the Fed (though I'm sure they'd love to).

And we can't fire the weather or send a hurricane to prison for wrecking the nation.