As recession fears mount in the U.S., Fed Chair Janet Yellen conceded there's a "chance" of a downtu

JakeStarkey

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Aug 10, 2009
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Yellen: Negative rates not 'off the table'


I do believe a slight recession is a head of us, and I also know the banks will try to get "negative rates" approved. That means you pay interest to the bank for holding your money. If you have not considered seriously handling your personal and family money with a federal credit union, please do so.
 
Yellen: Negative rates not 'off the table'


I do believe a slight recession is a head of us, and I also know the banks will try to get "negative rates" approved. That means you pay interest to the bank for holding your money. If you have not considered seriously handling your personal and family money with a federal credit union, please do so.

I also know the banks will try to get "negative rates" approved. That means you pay interest to the bank for holding your money.

Wrong. Negative rates are when the Central Bank charges banks on their reserve balances.
 
This didn't have to happen. Yellen and the Fed over-promised on rate increases and backed themselves into a ridiculous corner.

This bull market has been made of air provided by the Fed, it was badly over-bought, and experienced investors know it. So the correction will be strong.

The economy's foundations are okay, but because of the market, we may talk ourselves into a recession.

And now, on top of China and energy weakness, European banks may be going into the shitter, and we may see a domino effect now due to contagion.

We'll get past it, despite the distortions created by central banks.
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Yellen: Negative rates not 'off the table'


I do believe a slight recession is a head of us, and I also know the banks will try to get "negative rates" approved. That means you pay interest to the bank for holding your money. If you have not considered seriously handling your personal and family money with a federal credit union, please do so.

I also know the banks will try to get "negative rates" approved. That means you pay interest to the bank for holding your money.

Wrong. Negative rates are when the Central Bank charges banks on their reserve balances.

What do you think that will do to the interest rate Banks pay now? They are paying almost nothing now, I can't imagine that going anywhere but down. Maybe not negative but to zero.
 
Yellen: Negative rates not 'off the table'


I do believe a slight recession is a head of us, and I also know the banks will try to get "negative rates" approved. That means you pay interest to the bank for holding your money. If you have not considered seriously handling your personal and family money with a federal credit union, please do so.

I also know the banks will try to get "negative rates" approved. That means you pay interest to the bank for holding your money.

Wrong. Negative rates are when the Central Bank charges banks on their reserve balances.

What do you think that will do to the interest rate Banks pay now? They are paying almost nothing now, I can't imagine that going anywhere but down. Maybe not negative but to zero.

Banks are free to pay you zero or try to charge you for your balances. Always have been.
What Yellen was talking about is the Fed charging the banks.
 
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Yellen: Negative rates not 'off the table'


I do believe a slight recession is a head of us, and I also know the banks will try to get "negative rates" approved. That means you pay interest to the bank for holding your money. If you have not considered seriously handling your personal and family money with a federal credit union, please do so.

I also know the banks will try to get "negative rates" approved. That means you pay interest to the bank for holding your money.

Wrong. Negative rates are when the Central Bank charges banks on their reserve balances.

What do you think that will do to the interest rate Banks pay now? They are paying almost nothing now, I can't imagine that going anywhere but down. Maybe not negative but to zero.

Banks are free to pay you zero or try to charge you for your balances. Always have been.
What Yellen was talking about is the Fed charging the banks.
who will pass it down the line to the consumer
 
After 8 years, what Republican policy will get the blame if we go into recession?
 
Isn't this funny.. Right when we've been cutting the deficit.. Ain't that something? When has this happened before..?
 
Granny says, "Dat's right - dey payin' more attention to Janet Yellen dan dey are Obama...
icon_grandma.gif

Bank rally on shaky legs as traders assess rate hike odds
September 9, 2016 - A rare run of outperformance by U.S. bank shares appears to have hit a wall as a spate of soft readings on the economy have tempered bets that the Federal Reserve might raise rates soon.
The S&P 500's bank index <.SPXBK> is up nearly 9 percent so far in the third quarter, broadly outpacing the wider S&P's <.SPX> 1.4 percent advance. The group, which still lags badly on the year with a decline of 4.6 percent, is on pace for its first quarterly outperformance in more than a year as investors took clues from an increasingly hawkish string of Fed speakers throughout August. Low interest rates are a drag on bank profits, and the prospect of even a modest increase in borrowing costs would provide some welcome relief. "Bank (loans) are increasing, and the possibility of a rate increase means they can reasonably be expected to be doing more business and making more money on it," said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Massachusetts.

Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, said bank stocks "have been moving on Fed expectations – rallying as expectations for a rise increase and falling when those expectations become clouded." And, as if on cue, expectations have clouded since September kicked off, with data on the job market, car sales and the services and manufacturing sectors all undershooting forecasts. The probability of a rate hike at the Fed's next meeting on Sept 20-21 have sunk to just 24 percent from around 35 percent in late August, according to the CME Group's FedWatch tool. Bank stocks have slipped 2 percent since then, and Nolte, for one, thinks they will likely stay soft in the run up to this month's meeting and fall further afterward. A catalyst for a rebound could come soon in October, however, as the next earnings reporting season gets underway, said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey.

And after that, the greater possibility of a hike in December will begin to come into focus, bringing with it another potential tailwind for bank shares. CME's FedWatch shows December as a more likely bet, with the current probability around 55 percent. Still, expect the next couple of weeks to be a choppy affair for the sector - and the market more broadly - as rate hike expectations get whipsawed by some key data. Readings on retail sales, inflation and consumer sentiment are all due in the week ahead, and a final rash of Fed speakers will come into focus Monday. "It would take a big increase in retail sales, increase in inflation to get the Fed to even think twice (about September)," said Paul Christopher, head global market strategist at Wells Fargo Investment Institute in St. Louis, Missouri. Friday offered a taste of how the run up to the meeting could play out, with the S&P falling 2.45 percent, its biggest drop since June, after Boston Fed President Eric Rosengren said the Fed faced increasing risks if it waited too long to raise rates again. [nL1N1BL109] Bank stocks performed better than the overall market, but still slid 1.2 percent.

Bank rally on shaky legs as traders assess rate hike odds
 

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