Re: The stock market barely flinched on Friday

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Post #410,525 by a6l6e6x 5/28/16 3:43:14 PM 5/28/16 3:43:14 PM Reply	Re: The stock market barely flinched on Friday That's because her comments were "baked in". In other words, "no surprise, no reaction". Most everyone now believes a small bump in interest rates wouldn't hurt the US economy. Alex "There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that "my ignorance is just as good as your knowledge." -- Isaac Asimov
Post #410,531 by Another Scott 5/28/16 4:36:41 PM 5/28/16 4:36:41 PM Reply	The thinking behind it is dangerous though. The economy isn't overheating. There's absolutely no reason to believe that the Fed would let inflation get out of control. There's no reason at all why they can't wait. But, the default thinking of most of the people in the FOMC seems to be that rates need to go up, because rates need to go up. It doesn't matter that wages are still historically stagnant, rates need to go up, because shut up that's why. It's madness. I've seen some arguments that rates need to go up so that they can be cut when the US economy goes into recession again. But since there's no sign of a recession anytime soon (the economy isn't overheating, and shocks are by definition unpredictable, and the economy is still weak, etc.), that doesn't strike me as an argument that should have control of the near-term decision making. It's like the "We have to cut Social Security now because it'll be broke in 30 years if we don't do anything and then we'd have to cut benefits!!" argument. My $0.02. Cheers, Scott.
Post #410,534 by drook 5/28/16 7:17:31 PM 5/28/16 7:17:31 PM Reply	"We can't put any water on this fire ..." "... because then we wouldn't have any water if there's ever a fire we have to put out." -- Drew
Post #410,537 by a6l6e6x 5/28/16 9:21:51 PM 5/28/16 9:21:51 PM Reply	As long as interest rates are below inflation rates, it's an unnatural state. If you're holding cash, you're losing ground. It is a bit an uncharted territory to have had "quantitative easing" for so long. The Fed has to let things get back to normal. Slowly for sure. Alex "There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that "my ignorance is just as good as your knowledge." -- Isaac Asimov
Post #410,538 by drook 5/28/16 9:37:17 PM 5/28/16 9:37:17 PM Reply	Spend like crazy Fund every bridge and interstate repair project in the country. The money is essentially free, and putting that many people to work will put enough cash in circulation to raise inflation. -- Drew
Post #410,543 by a6l6e6x 5/28/16 10:14:16 PM 5/28/16 10:14:16 PM Reply	Tell that to the Speaker of the House. Paulie doesn't want good things to happen on Obama's watch. Alex "There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that "my ignorance is just as good as your knowledge." -- Isaac Asimov
Post #410,548 by boxley 5/28/16 10:25:34 PM 5/28/16 10:25:34 PM Reply	no, give it to the big banks and borrow it back at 3% interest is a better idea (we do now) always look out for number one and don't step in number two

Good question... - (Another Scott) - (12) - May 27, 2016, 11:02:03 PM EDT

Next month the Fed will raise the interest rate 0.25%. - (a6l6e6x) - (11) - May 28, 2016, 09:46:03 AM EDT

"The stock market maybe not so much." - (Andrew Grygus) - (1) - May 28, 2016, 10:55:16 AM EDT

That depends on which stocks. - (a6l6e6x) - May 28, 2016, 03:35:49 PM EDT

Dunno. - (Another Scott) - (8) - May 28, 2016, 11:27:51 AM EDT

Merrill Lynch via Calculated Risk, also too. - (Another Scott) - May 28, 2016, 12:03:32 PM EDT

Re: The stock market barely flinched on Friday - (a6l6e6x) - (6) - May 28, 2016, 03:43:14 PM EDT

The thinking behind it is dangerous though. - (Another Scott) - (5) - May 28, 2016, 04:36:41 PM EDT

"We can't put any water on this fire ..." - (drook) - May 28, 2016, 07:17:31 PM EDT

As long as interest rates are below inflation rates, it's an unnatural state. - (a6l6e6x) - (3) - May 28, 2016, 09:21:51 PM EDT

Spend like crazy - (drook) - (2) - May 28, 2016, 09:37:17 PM EDT

Tell that to the Speaker of the House. - (a6l6e6x) - May 28, 2016, 10:14:16 PM EDT

no, give it to the big banks and borrow it back at 3% interest is a better idea (we do now) -NT - (boxley) - May 28, 2016, 10:25:34 PM EDT

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