Rising Interest Rate is a good thing!

[HeSaidSheSaid]

on the contrary, falling interest rate is a bad thing.

Yahoo Finance
December 16, 2015
WASHINGTON (Reuters) - "The Federal Reserve hiked interest rates for the first time in nearly a decade on Wednesday, signaling faith that the U.S. economy had largely overcome the wounds of the 2007-2009 financial crisis.

The U.S. central bank's policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs". => then easymom had an orgasm!

 

[maxinger]

WRONG!

Rising Interest Rate is a good thing!
---->
Rising & Falling Interest rates are good!


when the interest rate is changing, it provides trading
opportunities for the traders.
When there is no change, it is no good!

 

[Cuddles]

holding bonds; can confirm

 

[Nine_Ender]

on the contrary, falling interest rate is a bad thing.

Yahoo Finance
December 16, 2015
WASHINGTON (Reuters) - "The Federal Reserve hiked interest rates for the first time in nearly a decade on Wednesday, signaling faith that the U.S. economy had largely overcome the wounds of the 2007-2009 financial crisis.

The U.S. central bank's policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs". => then easymom had an orgasm!

Some posters on here seem unaware this even happened. Markets were pretty strong in 2015 so anyone actively trading for a correction endured a tough year watching people make money. And some posters on here got so excited during the correction they forgot to go long. S2007S said 40-60% drop was coming AFTER the correction did it's thing.

 

[ipatent]

Real or nominal?

 

[MKTrader]

holding bonds; can confirm

You do know the relationship between bonds and interest rates, right?

 

[MKTrader]

It might be okay to a point, but with the current level of government debt, rates can't go up too much or the level of interest on debt will be overwhelming.

 

[Overnight]

You do know the relationship between bonds and interest rates, right?

Oooh, I think I know that one...

 

[HeSaidSheSaid]

holding bonds; can confirm

•how has holding bonds been working for you? charts show traders have avoided bonds, and you know the reason why, then do your own homework

•I'd buy when markets tank. we can see this movie would have a good ending. (no not happy ending

•a lot of regional banks were also on fire today (probably, not a good entry point now).

 

[countryBoy641]

Current U.S. Treasury rates:

1 year - 0.450%
2 year - 0.880%
3 year - 1.15%
5 year - 1.47%
7 year - 1.66%
10 year - 1.73%

Why are these rates so low?
Recent CPI prints are high single digits.
Because ... maybe ... the U.S. Treasury can't afford to pay higher interest rates?
So, to keep these rates so low, the FED has become one of the largest buyers of U.S. debt.
But where does the FED get all this money?
They don't have any money.
So, they print it.
Where is the inflation coming from?
The FED.
Are higher interest rates good?
Only if you think that rising inflation is good.
And it is certainly not good for non-investors - individuals without assets.