the US economy is collapsing, & this time there'll be no recovery my friends. just ask Dave Stockman

[basquebromance]

in theory, higher interest rates might deter consumers and companies from borrowing to spend. in theory, this might reduce demand for products, raw materials, and workers, avoiding inflation.

most economists believe that other factors matter more than interest rates: shifts in workers' negotiating power, gains in productivity by companies, new opportunities to sell abroad, any of these has a more profound effect on prices, my friends!

 

[basquebromance]

[QUOTE="basquebromance, post: 22985238,]

Donald "this is the best economy ever" Trump will not know what hit him, much like the titanic. i call it the DEBTBERG!

i agree with Reagan budget director Stockman 100%

America-hating Democrats are so butthurt that Dorian didn't destroy chunk of Florida that they're making up new imaginary disasters.

You're pathetic.[/QUOTE]
i created this thread before the whole Dorian thing

nice try, buddy boy!

 

[basquebromance]

today, few economists regard Fed monetary policy as a panacea for controlling the business cycle!

 

[basquebromance]

in 1945 the long term interest rate was finally allowed to rise. inflation abruptly came down, proving that monetary policy was not actually impotent!

some years later, Fed chairman Martin encountered Truman on a street in NY.

Truman bellowed one word: "TRAITOR!", and then continued his path!

 

[bendog]

Well, if for example the stocks making up the dow take a huge tumble of say 50%, the fed can't do a bailout like they did with CDOs where they essentially just bought the bad loan and thereby owned the real estate collateralizing the loan. If you're an investor, you'd still own the same number of index fund shares. If you're an investor you have faith that eventually the index will recover its value, and you won't have any real losses except for the time lost while the index recovered.

Stockman is a sophist though and has no real morals. in short, he speaks with forked tongue.

the fed can't do a bailout like they did with CDOs where they essentially just bought the bad loan and thereby owned the real estate collateralizing the loan.

The Fed didn't buy any bad loans.

Booooooshiiiiiite

The Great Recession | Federal Reserve History

In November 2008, the Fed announced that it would purchase US agency mortgage-backed securities (MBS) and the debt of housing related US government agencies (Fannie Mae, Freddie Mac, and the Federal Home Loan banks).1 The choice of assets was partly aimed at reducing the cost and increasing the availability of credit for home purchases. These purchases provided support for the housing market, which was the epicenter of the crisis and recession, and also helped improve broader financial conditions. The initial plan had the Fed buying up to $500 billion in agency MBS and up to $100 billion in agency debt; this particular program was expanded in March 2009 and completed in 2010

 

[basquebromance]

Well, if for example the stocks making up the dow take a huge tumble of say 50%, the fed can't do a bailout like they did with CDOs where they essentially just bought the bad loan and thereby owned the real estate collateralizing the loan. If you're an investor, you'd still own the same number of index fund shares. If you're an investor you have faith that eventually the index will recover its value, and you won't have any real losses except for the time lost while the index recovered.

Stockman is a sophist though and has no real morals. in short, he speaks with forked tongue.

the fed can't do a bailout like they did with CDOs where they essentially just bought the bad loan and thereby owned the real estate collateralizing the loan.

The Fed didn't buy any bad loans.

Booooooshiiiiiite

The Great Recession | Federal Reserve History

In November 2008, the Fed announced that it would purchase US agency mortgage-backed securities (MBS) and the debt of housing related US government agencies (Fannie Mae, Freddie Mac, and the Federal Home Loan banks).1 The choice of assets was partly aimed at reducing the cost and increasing the availability of credit for home purchases. These purchases provided support for the housing market, which was the epicenter of the crisis and recession, and also helped improve broader financial conditions. The initial plan had the Fed buying up to $500 billion in agency MBS and up to $100 billion in agency debt; this particular program was expanded in March 2009 and completed in 2010

the friskier the banks grow, the more it is vital that the Fed restrains them!

 

[basquebromance]

inflation is always and everywhere a monetary phenomenon, my friends

 

[basquebromance]

stock prices drive corporate investments in fixed assets, in turn, those investments drive many of the booms and busts in a capitalist economy!

 

[basquebromance]

brothers and sisters: if this stock market boom is allowed to run on, the spending surge will outpace the economy's ability to supply goods, bottlenecks will bring INFLATION!

The higher the stock market gets at its peak and hence the greater decline required to return to normal, the deeper the decline in economic activity!

 

[Toddsterpatriot]

Well, if for example the stocks making up the dow take a huge tumble of say 50%, the fed can't do a bailout like they did with CDOs where they essentially just bought the bad loan and thereby owned the real estate collateralizing the loan. If you're an investor, you'd still own the same number of index fund shares. If you're an investor you have faith that eventually the index will recover its value, and you won't have any real losses except for the time lost while the index recovered.

Stockman is a sophist though and has no real morals. in short, he speaks with forked tongue.

the fed can't do a bailout like they did with CDOs where they essentially just bought the bad loan and thereby owned the real estate collateralizing the loan.

The Fed didn't buy any bad loans.

Booooooshiiiiiite

The Great Recession | Federal Reserve History

In November 2008, the Fed announced that it would purchase US agency mortgage-backed securities (MBS) and the debt of housing related US government agencies (Fannie Mae, Freddie Mac, and the Federal Home Loan banks).1 The choice of assets was partly aimed at reducing the cost and increasing the availability of credit for home purchases. These purchases provided support for the housing market, which was the epicenter of the crisis and recession, and also helped improve broader financial conditions. The initial plan had the Fed buying up to $500 billion in agency MBS and up to $100 billion in agency debt; this particular program was expanded in March 2009 and completed in 2010

In November 2008, the Fed announced that it would purchase US agency mortgage-backed securities (MBS) and the debt of housing related US government agencies (Fannie Mae, Freddie Mac, and the Federal Home Loan banks).1

Thanks for admitting your error.

 

[basquebromance]

we borrow trillions of dollars from the chinese to go to war and cut taxes. our next president better stop doing that. our next president better be BETO!

 

[whitehall]

"This time there'll be no recovery"? Is that the crazy left's new fantasy? Stockman used the Reagan administration to land an insider job on Wall Street and then he turned on his former boss. Somehow he managed to dodge an indictment and jail time when he quit the Salomon Brothers just before the fraud conspiracy that brought the corporation down. Today he is just another has-been political prostitute trying to hype a book.

 

[MAGAman]

what causes inflation? excess government spending!

like defense spending!

Welfare spending moves the needle more.

So does increases in minimum wage.

I guess that makes you pro-inflation.

 

[MAGAman]

.

 

[MAGAman]

we borrow trillions of dollars from the chinese to go to war and cut taxes. our next president better stop doing that. our next president better be BETO!

Beto?

Hahahaha.

 

[basquebromance]

from CNBC:

"Be prepared.⁠
⁠
It won’t be long before the spread of negative interest rates reaches the U.S., according to former Fed Chair Alan Greenspan.⁠
⁠
There are currently more than $16 trillion in negative-yielding debt instruments around the world as the 10-year sovereign bonds in Belgium, Germany, France and Japan — among others — trade with a negative rates.⁠
⁠
Though U.S. Treasury yields are still well within positive territory, the Fed has already cut rates once this year and is expected to ease later this month.⁠
⁠
And Greenspan says an aging American population is driving demand for bonds, pushing their yields lower.⁠"

 

[LordBrownTrout]

It doesn't matter. The next currency will be a global mark currency.

 

[basquebromance]

the only minority destroying america is THE RICH!

 

[basquebromance]

"federal Reserve officials are preparing to cut interest rates this month for the second time since the financial crisis as the year-long U.S.-China trade war eats away at global growth.

The central #bank is likely to lower the benchmark federal funds rate by a quarter-percentage point at its Sept. 17-18 meeting, according to the Wall Street Journal, after policymakers brushed aside the idea of a more aggressive half-point cut"

 

[WTH_Progs?]

Donald "this is the best economy ever" Trump will not know what hit him, much like the titanic. i call it the DEBTBERG!

i agree with Reagan budget director Stockman 100%

Someone needs to tell the market, because today the DOW is up bigly