Whoa, mate, this is some weird sh1t right here...
"Top 50 fanatical institutions"? "Democrats vs the Conservative party"? "FED has his numbers"?
Rate hike odds plunge, yep more excuses not to raise rates in 2016
- Thread starter S2007S
- Start date
"Top 50 fanatical institutions"? "Democrats vs the Conservative party"? "FED has his numbers"?
Low interest rates are frankly great and a welcome reality compared to the high interest rates we experienced in some previous decades. I can't believe the level of energy some of you put into complaining about low interest rates on this site. How on earth is this a negative in your life ? Learn to adapt.
"And if interest rates go up Donald Trump is right, we have no choice than to tell our creditors they are taking a big haircut,"
http://finance.yahoo.com/news/donald-trump-just-exposed-americas-210000595.html
http://finance.yahoo.com/news/donald-trump-just-exposed-americas-210000595.html
Like many things economic...short term positive for long term negative.
If artificially low interest rates were unanimously good then we would just keep them here forever with no detrimental effect.
But we all know that the Piper will need to be paid at some point and the longer it takes the worse it will be.
The interest rate won't rise this year because it is an election year.
After the election, who knows ? It depends on who wins.
You must be fairly young. Long term depends on many factors, some that cannot be forecast at all. There is no reason to suspect that the duration of low interest rate levels impacts on some mystery down side you can't even quantify or discuss specifically now. It's more of an irrational fear then something you can control. Saying the "Piper will need to be paid" is based on absolutely nothing.
Look, when I was younger, in Canada, I paid ( artificially ? ) high tax on my earnings. Some citizens moved to the US because taxes were at the time much lower there. At the time, if the internet existed, I'm sure there would be a site like this with these kind of ideas posted : tax levels are unsustainable at these levels and will ruin the Canadian economy moving forward, we'll lose all our smart people to the US, etc etc. In addition, interest rates were for years at ( artificially ? ) high levels. People worried about hyperinflation and the growing national debt ( at historical highs compared to GDP I believe ).
10-15 years later, everything changed dramatically and almost nothing like what most predicted. Governments were running small surpluses, interest rates were dropping, Canada was still doing fine, there was no long term damage from the previous decade. Then Canadian personal tax rates slowly but surely made very real drops. In fact, once one factors in health care, nobody really talks about US citizens being less taxed anymore, and the idea of moving to the US for employment is perhaps at it's lowest level of popularity in decades ( for a variety of reasons, including the thought that US prosperity is in decline and Canada is improving ).
In other words, stressing about financial issues in the 1970s and 1980s based on some vague long term themes ended up being entirely pointless.
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the stock market dropped in September where rates were not risen as everybody expected. Then we were told that negative impact of rising rates would equalize the positive impact. Then the rates were risen in December and the stock market still declined.
It looks like the FED is not focusing on the economic data at all but its main focus is on the Wall Street - not to let the market crash.
June is coming and everybody are expecting a rate rise. If FED finds another reason to delay it we may see a negative reaction on the market (as in September 2015). On the other hand if FED moves rates up it will have negative impact on the market (as in December 2015). Right now the major US indexes were they were a month ago - we are flat - everybody are waiting as they do not know what to expect.
It looks like the FED is not focusing on the economic data at all but its main focus is on the Wall Street - not to let the market crash.
June is coming and everybody are expecting a rate rise. If FED finds another reason to delay it we may see a negative reaction on the market (as in September 2015). On the other hand if FED moves rates up it will have negative impact on the market (as in December 2015). Right now the major US indexes were they were a month ago - we are flat - everybody are waiting as they do not know what to expect.
You must be fairly old.
You are confusing monetary and fiscal policy.
You can't conflate a stupid tax policy and a stupid interest rate policy other than to say they are both stupid and the result of them will be generally negative.
When the banksters slash rates to zero, for the wrong reason, it doesn't take a soothsayer to know it will lead to distress. It's happening right now. The results of our stagnant global economy now with rates racing towards zero most everywhere is an effect of a ZIRP policy. And the fact that this policy is a theoretical dead end means monetary policy has failed.
There is no demand and more credit was not the answer. They blew it.
To say that the current policy will not have to be paid for (or is currently being suffered through) is a stunning lack of vision for someone so old and for someone who has lived through so much.
Savings have collapsed anywhere where IR's are near zero. Investment by corporation has also has slowed. Bubbles get blown. Middle class suffers most. Home prices become unsustainably high.
Eventually when rates rise, whenever that might be, I believe it will result in a colossal implosion.
You are confusing monetary and fiscal policy.
You can't conflate a stupid tax policy and a stupid interest rate policy other than to say they are both stupid and the result of them will be generally negative.
When the banksters slash rates to zero, for the wrong reason, it doesn't take a soothsayer to know it will lead to distress. It's happening right now. The results of our stagnant global economy now with rates racing towards zero most everywhere is an effect of a ZIRP policy. And the fact that this policy is a theoretical dead end means monetary policy has failed.
There is no demand and more credit was not the answer. They blew it.
To say that the current policy will not have to be paid for (or is currently being suffered through) is a stunning lack of vision for someone so old and for someone who has lived through so much.
Savings have collapsed anywhere where IR's are near zero. Investment by corporation has also has slowed. Bubbles get blown. Middle class suffers most. Home prices become unsustainably high.
Eventually when rates rise, whenever that might be, I believe it will result in a colossal implosion.