Federal reserve vice chairman says low interest rates will be bad for US economy

[Toddsterpatriot]

I am guessing you don't do a lot of investing, or at least do your own investing.

I do lots of investing.

That's ok, most people don't, and thus they don't understand the damage the Fed has done with their massive money printing,

What damage have they done?

Read this short article and it will clear up the confusion you are having.

What confusion do you feel I'm having? Be specific.

Even as recently as 2007, banks were paying 4% interest.

Yes. And?

We have the Federal Reserve’s manipulation of the bond market to blame for this change.

No we don't. Weak growth and low inflation is the cause. Banks aren't lending because of increased capital requirements. Low demand for new loans means lower rates on deposits.

Ok, believe what you want. How you can think the money printing the Fed has been doing has had no effect on interest rates is silly. Increase the supply of money and the cost of money goes down, Econ 101.

Maybe you should let Janet Yellen know she can't influence long term rates, because she believes she can and has.

How Central Banks Cause Financial Crises

The leaders of the world's largest central banks don't seem overly alarmed by the risks that unconventional monetary policy poses.

Janet Yellen, in a speech at the Economic Club of New York in March, assured investors that the Fed could, if necessary, "put additional downward pressure on long-term interest rates and so support the economy" by using "forward guidance about the future path of the federal funds rate and increases in the size or duration of our holdings of long-term securities."

I gotta ask, are you fully invested in this stock market, have you been buying bonds over the last 10 years? If so, you have done well. The question is will you know when to sell those bonds and those high flying stocks.

Ok, believe what you want.

I just want you to back up your claims.

How you can think the money printing the Fed has been doing has had no effect on interest rates is silly.

What effect did it have? What did rates do when they stopped printing?

Increase the supply of money and the cost of money goes down, Econ 101.

I thought printing too much money caused inflation and rising rates? Econ 101.

Maybe you should let Janet Yellen know she can't influence long term rates,

Influence? Sometimes. Control? Not so much.

are you fully invested in this stock market,

Pretty much.

The question is will you know when to sell those bonds and those high flying stocks.

Slowly, in retirement.

Interest rates are artificially low because of the Fed, the stock market is near all time highs because there is no other place to get a reasonable return (TINA), the bond market has become an exercise in the greater fool theory, that being "I willl buy this bond now and hope rates go down and a bigger fool will buy it from me". Stocks are poised to fall back when the market sentiment inevitable changes, and investors realize the valuations are too high in a slow/no growth environment. When this will happen is anybodies guess, but the longer it takes, the more violent it will be. All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

The Fed is robbing savers by not raising rates. It makes it impossible for them to get a reasonable return on their money. Those in retirement are hurt the worst.

"I thought printing too much money caused inflation and rising rates? Econ 101."

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive, read bubbles. Printing money does NOT raise rates. You really don't think that excessive supply leads to higher cost, do you?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall. Therefore, the creation of paper money by the Fed pushed interest rates lower. Consequently, the cost of mortgages, car loans and other consumer credit all fell. Lower mortgage rates kept home prices from dropping even further than they have; and lower interest rates on consumer credit supported consumer spending (and therefore the GDP).

You might want to read what some very big and successful investors are saying.
These three investing legends are warning of another crash

I hope you have at least some hedge in place against a falling market. Hey, it's your money, do what you want, but every investor is a genius in a market moving up.

Read Marc Faber, Bill Fleckenstein and Fred Hickey if you want a perspective from somebody other than your stock broker.

Good luck, I hope your retirement nest egg is protected.

Interest rates are artificially low because of the Fed

Which ones?

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive

Inflation makes bonds go down. Are they going down?

Printing money does NOT raise rates.

Look at Venezuela and Zimbabwe. They print, they have inflation and high rates.
We have neither.

All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

Who at the Fed believes they can avoid downturns? I think they're pretty clear that their powers are limited.

The Fed is robbing savers by not raising rates.

Nobody is borrowing, everyone wants to be in cash, how high should rates be?
If the Fed let overnight rates float, do you think they'd increase? How much? Why?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall.

And when they stopped printing, what did yields do?

Consequently, the cost of mortgages, car loans and other consumer credit all fell.

So people who had mortgages and other loans, saved money.
Thanks Fed.

Which rates? Better question is which aren't. Feds buy treasuries which drives price up/rates down. It ripples thru to all interest bearing products save credit card debt. Certainly mortgage rates, nearly all bond rates, stocks paying dividends go up as investors chase returns.

Inflation makes bonds go down is not absolute. The inflation we have is not in the typical CPI measurement. It is asset inflation, stocks, bonds, real estate. Why in an economy that has been anemic for the last 8 years, meaning no substantial growth, are asset prices going up? Wages have not increased, unemployment is a problem for middle income people. Too many part timers making less. If you are relying on the CNBC Jim Crammers of the world, you will never get the pertinent facts. Those folks want to paint a rosy picture. They have "experts" from investment banks tell you everything is fine. Did you hear about the credit bubble in 2007 from these clowns? Nope! They report, they don't tell you when it's coming.

Third world countries (Venezuela, Zimbabwe) with a fiat currency not supported by the largest economy in the world is not a good analogy to what is occurring in the US. The US dollar is the reserve currency for the world, everything is denominated in US dollars. And you can sit and believe we don't have inflation because it makes you seem rich when you are holding the assets (stocks, bonds, real estate) which are inflated. Ask yourself why IBM hasn't seen top line growth in over 4 years, ask yourself why companies BORROW cheap money to buy back their own stock, but won't invest in hiring more people, building plants or infrastructure. They want their stock price high, and have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

The Fed is not clear about anything. They have been promising interest rate hikes for 2 years, and all they have managed is one 1/4 point. Did you happen to see how the stock market reacted the next quarter?

Saying nobody is borrowing is absurd. People are borrowing, real estate prices are high because of borrowing at low rates. Apple has tons of cash, but money is so cheap they borrow to pay dividends and buy their own stock. Seriously? Nobody is borrowing. Where do you get this shit?

U.S. warns of rising car loan risk

The explosion of auto lending may be starting to hit the skids.
A top banking regulator warned that the $1 trillion car loan industry has gotten more dangerous. The Office of the Comptroller of the Currency cited "unprecedented" growth in auto loans, rising delinquencies and shrinking used car values.


The banking watchdog also pointed to cutthroat competition among banks, which has led them to relax underwriting standards.

You go ahead and thank the Fed for your great stock portfolio and all the appreciation in your real estate, I just wonder who you'll blame when your stocks start bleeding and your real estate loans go upside down. Too much CNBC is a bad thing brother.

Which rates? Better question is which aren't.

Anything longer than overnight aren't

Feds buy treasuries which drives price up/rates down.

The Fed stopped buying, what did rates do?

Inflation makes bonds go down is not absolute.

Show me an instance where inflation didn't hurt fixed rate debt.

The inflation we have is not in the typical CPI measurement.

So the inflation we aren't experiencing is why bonds aren't being harmed. Makes sense.

Ask yourself why IBM hasn't seen top line growth in over 4 years,

Bad business choices.

ask yourself why companies BORROW cheap money to buy back their own stock

Rates are low, why not?

have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

Why do you think reducing the float is artificial? Seems real to me.

The Fed is not clear about anything.

They're clear that they can't fix the economy, or avoid downturns, by adjusting rates.

Seriously? Nobody is borrowing. Where do you get this shit?

If loan demand was high, banks would be raising their lending rates.
You have a list of banks doing that?

You never answered, if the Fed let overnight rates float, do you think they'd increase? How much? Why?

 

[Toddsterpatriot]

I am guessing you don't do a lot of investing, or at least do your own investing.

I do lots of investing.

That's ok, most people don't, and thus they don't understand the damage the Fed has done with their massive money printing,

What damage have they done?

Read this short article and it will clear up the confusion you are having.

What confusion do you feel I'm having? Be specific.

Even as recently as 2007, banks were paying 4% interest.

Yes. And?

We have the Federal Reserve’s manipulation of the bond market to blame for this change.

No we don't. Weak growth and low inflation is the cause. Banks aren't lending because of increased capital requirements. Low demand for new loans means lower rates on deposits.

Ok, believe what you want. How you can think the money printing the Fed has been doing has had no effect on interest rates is silly. Increase the supply of money and the cost of money goes down, Econ 101.

Maybe you should let Janet Yellen know she can't influence long term rates, because she believes she can and has.

How Central Banks Cause Financial Crises

The leaders of the world's largest central banks don't seem overly alarmed by the risks that unconventional monetary policy poses.

Janet Yellen, in a speech at the Economic Club of New York in March, assured investors that the Fed could, if necessary, "put additional downward pressure on long-term interest rates and so support the economy" by using "forward guidance about the future path of the federal funds rate and increases in the size or duration of our holdings of long-term securities."

I gotta ask, are you fully invested in this stock market, have you been buying bonds over the last 10 years? If so, you have done well. The question is will you know when to sell those bonds and those high flying stocks.

Ok, believe what you want.

I just want you to back up your claims.

How you can think the money printing the Fed has been doing has had no effect on interest rates is silly.

What effect did it have? What did rates do when they stopped printing?

Increase the supply of money and the cost of money goes down, Econ 101.

I thought printing too much money caused inflation and rising rates? Econ 101.

Maybe you should let Janet Yellen know she can't influence long term rates,

Influence? Sometimes. Control? Not so much.

are you fully invested in this stock market,

Pretty much.

The question is will you know when to sell those bonds and those high flying stocks.

Slowly, in retirement.

Interest rates are artificially low because of the Fed, the stock market is near all time highs because there is no other place to get a reasonable return (TINA), the bond market has become an exercise in the greater fool theory, that being "I willl buy this bond now and hope rates go down and a bigger fool will buy it from me". Stocks are poised to fall back when the market sentiment inevitable changes, and investors realize the valuations are too high in a slow/no growth environment. When this will happen is anybodies guess, but the longer it takes, the more violent it will be. All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

The Fed is robbing savers by not raising rates. It makes it impossible for them to get a reasonable return on their money. Those in retirement are hurt the worst.

"I thought printing too much money caused inflation and rising rates? Econ 101."

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive, read bubbles. Printing money does NOT raise rates. You really don't think that excessive supply leads to higher cost, do you?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall. Therefore, the creation of paper money by the Fed pushed interest rates lower. Consequently, the cost of mortgages, car loans and other consumer credit all fell. Lower mortgage rates kept home prices from dropping even further than they have; and lower interest rates on consumer credit supported consumer spending (and therefore the GDP).

You might want to read what some very big and successful investors are saying.
These three investing legends are warning of another crash

I hope you have at least some hedge in place against a falling market. Hey, it's your money, do what you want, but every investor is a genius in a market moving up.

Read Marc Faber, Bill Fleckenstein and Fred Hickey if you want a perspective from somebody other than your stock broker.

Good luck, I hope your retirement nest egg is protected.

Interest rates are artificially low because of the Fed

Which ones?

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive

Inflation makes bonds go down. Are they going down?

Printing money does NOT raise rates.

Look at Venezuela and Zimbabwe. They print, they have inflation and high rates.
We have neither.

All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

Who at the Fed believes they can avoid downturns? I think they're pretty clear that their powers are limited.

The Fed is robbing savers by not raising rates.

Nobody is borrowing, everyone wants to be in cash, how high should rates be?
If the Fed let overnight rates float, do you think they'd increase? How much? Why?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall.

And when they stopped printing, what did yields do?

Consequently, the cost of mortgages, car loans and other consumer credit all fell.

So people who had mortgages and other loans, saved money.
Thanks Fed.

Which rates? Better question is which aren't. Feds buy treasuries which drives price up/rates down. It ripples thru to all interest bearing products save credit card debt. Certainly mortgage rates, nearly all bond rates, stocks paying dividends go up as investors chase returns.

Inflation makes bonds go down is not absolute. The inflation we have is not in the typical CPI measurement. It is asset inflation, stocks, bonds, real estate. Why in an economy that has been anemic for the last 8 years, meaning no substantial growth, are asset prices going up? Wages have not increased, unemployment is a problem for middle income people. Too many part timers making less. If you are relying on the CNBC Jim Crammers of the world, you will never get the pertinent facts. Those folks want to paint a rosy picture. They have "experts" from investment banks tell you everything is fine. Did you hear about the credit bubble in 2007 from these clowns? Nope! They report, they don't tell you when it's coming.

Third world countries (Venezuela, Zimbabwe) with a fiat currency not supported by the largest economy in the world is not a good analogy to what is occurring in the US. The US dollar is the reserve currency for the world, everything is denominated in US dollars. And you can sit and believe we don't have inflation because it makes you seem rich when you are holding the assets (stocks, bonds, real estate) which are inflated. Ask yourself why IBM hasn't seen top line growth in over 4 years, ask yourself why companies BORROW cheap money to buy back their own stock, but won't invest in hiring more people, building plants or infrastructure. They want their stock price high, and have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

The Fed is not clear about anything. They have been promising interest rate hikes for 2 years, and all they have managed is one 1/4 point. Did you happen to see how the stock market reacted the next quarter?

Saying nobody is borrowing is absurd. People are borrowing, real estate prices are high because of borrowing at low rates. Apple has tons of cash, but money is so cheap they borrow to pay dividends and buy their own stock. Seriously? Nobody is borrowing. Where do you get this shit?

U.S. warns of rising car loan risk

The explosion of auto lending may be starting to hit the skids.
A top banking regulator warned that the $1 trillion car loan industry has gotten more dangerous. The Office of the Comptroller of the Currency cited "unprecedented" growth in auto loans, rising delinquencies and shrinking used car values.


The banking watchdog also pointed to cutthroat competition among banks, which has led them to relax underwriting standards.

You go ahead and thank the Fed for your great stock portfolio and all the appreciation in your real estate, I just wonder who you'll blame when your stocks start bleeding and your real estate loans go upside down. Too much CNBC is a bad thing brother.

Which rates? Better question is which aren't.

Anything longer than overnight aren't

Feds buy treasuries which drives price up/rates down.

The Fed stopped buying, what did rates do? You've avoided this question 3 or 4 times now.

Inflation makes bonds go down is not absolute.

Show me an instance where inflation didn't hurt fixed rate debt.

The inflation we have is not in the typical CPI measurement.

So the inflation we aren't experiencing is why bonds aren't being harmed. Makes sense.

Why in an economy that has been anemic for the last 8 years, meaning no substantial growth, are asset prices going up?

What are gold, silver and oil down so much?

Ask yourself why IBM hasn't seen top line growth in over 4 years,

Bad business choices.

ask yourself why companies BORROW cheap money to buy back their own stock

Rates are low, why not?

have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

Why do you think reducing the float is artificial? Seems real to me.

The Fed is not clear about anything.

They're clear that they can't fix the economy, or avoid downturns, by adjusting rates.

Seriously? Nobody is borrowing. Where do you get this shit?

If loan demand was high, banks would be raising their lending rates.
You have a list of banks doing that?

You never answered, if the Fed let overnight rates float, do you think they'd increase? How much? Why?

 

[BuckToothMoron]

I just wonder who you'll blame when your stocks start bleeding and your real estate loans go upside down. Too much CNBC is a bad thing brother.

why would stocks and real estate go down when Fed will probably prevent it?????

Fed can only influence for so long. They are low on bullets. Interest rates and money supply are their tools, and those tools have nearly reached the extinct of their effectiveness. How can the Fed prevent it? More money printing, lower rates?

 

[BuckToothMoron]

Ok, believe what you want. How you can think the money printing the Fed has been doing has had no effect on interest rates is silly. Increase the supply of money and the cost of money goes down, Econ 101.

Maybe you should let Janet Yellen know she can't influence long term rates, because she believes she can and has.

How Central Banks Cause Financial Crises

The leaders of the world's largest central banks don't seem overly alarmed by the risks that unconventional monetary policy poses.

Janet Yellen, in a speech at the Economic Club of New York in March, assured investors that the Fed could, if necessary, "put additional downward pressure on long-term interest rates and so support the economy" by using "forward guidance about the future path of the federal funds rate and increases in the size or duration of our holdings of long-term securities."

I gotta ask, are you fully invested in this stock market, have you been buying bonds over the last 10 years? If so, you have done well. The question is will you know when to sell those bonds and those high flying stocks.

Ok, believe what you want.

I just want you to back up your claims.

How you can think the money printing the Fed has been doing has had no effect on interest rates is silly.

What effect did it have? What did rates do when they stopped printing?

Increase the supply of money and the cost of money goes down, Econ 101.

I thought printing too much money caused inflation and rising rates? Econ 101.

Maybe you should let Janet Yellen know she can't influence long term rates,

Influence? Sometimes. Control? Not so much.

are you fully invested in this stock market,

Pretty much.

The question is will you know when to sell those bonds and those high flying stocks.

Slowly, in retirement.

Interest rates are artificially low because of the Fed, the stock market is near all time highs because there is no other place to get a reasonable return (TINA), the bond market has become an exercise in the greater fool theory, that being "I willl buy this bond now and hope rates go down and a bigger fool will buy it from me". Stocks are poised to fall back when the market sentiment inevitable changes, and investors realize the valuations are too high in a slow/no growth environment. When this will happen is anybodies guess, but the longer it takes, the more violent it will be. All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

The Fed is robbing savers by not raising rates. It makes it impossible for them to get a reasonable return on their money. Those in retirement are hurt the worst.

"I thought printing too much money caused inflation and rising rates? Econ 101."

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive, read bubbles. Printing money does NOT raise rates. You really don't think that excessive supply leads to higher cost, do you?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall. Therefore, the creation of paper money by the Fed pushed interest rates lower. Consequently, the cost of mortgages, car loans and other consumer credit all fell. Lower mortgage rates kept home prices from dropping even further than they have; and lower interest rates on consumer credit supported consumer spending (and therefore the GDP).

You might want to read what some very big and successful investors are saying.
These three investing legends are warning of another crash

I hope you have at least some hedge in place against a falling market. Hey, it's your money, do what you want, but every investor is a genius in a market moving up.

Read Marc Faber, Bill Fleckenstein and Fred Hickey if you want a perspective from somebody other than your stock broker.

Good luck, I hope your retirement nest egg is protected.

Interest rates are artificially low because of the Fed

Which ones?

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive

Inflation makes bonds go down. Are they going down?

Printing money does NOT raise rates.

Look at Venezuela and Zimbabwe. They print, they have inflation and high rates.
We have neither.

All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

Who at the Fed believes they can avoid downturns? I think they're pretty clear that their powers are limited.

The Fed is robbing savers by not raising rates.

Nobody is borrowing, everyone wants to be in cash, how high should rates be?
If the Fed let overnight rates float, do you think they'd increase? How much? Why?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall.

And when they stopped printing, what did yields do?

Consequently, the cost of mortgages, car loans and other consumer credit all fell.

So people who had mortgages and other loans, saved money.
Thanks Fed.

Which rates? Better question is which aren't. Feds buy treasuries which drives price up/rates down. It ripples thru to all interest bearing products save credit card debt. Certainly mortgage rates, nearly all bond rates, stocks paying dividends go up as investors chase returns.

Inflation makes bonds go down is not absolute. The inflation we have is not in the typical CPI measurement. It is asset inflation, stocks, bonds, real estate. Why in an economy that has been anemic for the last 8 years, meaning no substantial growth, are asset prices going up? Wages have not increased, unemployment is a problem for middle income people. Too many part timers making less. If you are relying on the CNBC Jim Crammers of the world, you will never get the pertinent facts. Those folks want to paint a rosy picture. They have "experts" from investment banks tell you everything is fine. Did you hear about the credit bubble in 2007 from these clowns? Nope! They report, they don't tell you when it's coming.

Third world countries (Venezuela, Zimbabwe) with a fiat currency not supported by the largest economy in the world is not a good analogy to what is occurring in the US. The US dollar is the reserve currency for the world, everything is denominated in US dollars. And you can sit and believe we don't have inflation because it makes you seem rich when you are holding the assets (stocks, bonds, real estate) which are inflated. Ask yourself why IBM hasn't seen top line growth in over 4 years, ask yourself why companies BORROW cheap money to buy back their own stock, but won't invest in hiring more people, building plants or infrastructure. They want their stock price high, and have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

The Fed is not clear about anything. They have been promising interest rate hikes for 2 years, and all they have managed is one 1/4 point. Did you happen to see how the stock market reacted the next quarter?

Saying nobody is borrowing is absurd. People are borrowing, real estate prices are high because of borrowing at low rates. Apple has tons of cash, but money is so cheap they borrow to pay dividends and buy their own stock. Seriously? Nobody is borrowing. Where do you get this shit?

U.S. warns of rising car loan risk

The explosion of auto lending may be starting to hit the skids.
A top banking regulator warned that the $1 trillion car loan industry has gotten more dangerous. The Office of the Comptroller of the Currency cited "unprecedented" growth in auto loans, rising delinquencies and shrinking used car values.


The banking watchdog also pointed to cutthroat competition among banks, which has led them to relax underwriting standards.

You go ahead and thank the Fed for your great stock portfolio and all the appreciation in your real estate, I just wonder who you'll blame when your stocks start bleeding and your real estate loans go upside down. Too much CNBC is a bad thing brother.

Which rates? Better question is which aren't.

Anything longer than overnight aren't

Feds buy treasuries which drives price up/rates down.

The Fed stopped buying, what did rates do?

Inflation makes bonds go down is not absolute.

Show me an instance where inflation didn't hurt fixed rate debt.

The inflation we have is not in the typical CPI measurement.

So the inflation we aren't experiencing is why bonds aren't being harmed. Makes sense.

Ask yourself why IBM hasn't seen top line growth in over 4 years,

Bad business choices.

ask yourself why companies BORROW cheap money to buy back their own stock

Rates are low, why not?

have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

Why do you think reducing the float is artificial? Seems real to me.

The Fed is not clear about anything.

They're clear that they can't fix the economy, or avoid downturns, by adjusting rates.

Seriously? Nobody is borrowing. Where do you get this shit?

If loan demand was high, banks would be raising their lending rates.
You have a list of banks doing that?

You never answered, if the Fed let overnight rates float, do you think they'd increase? How much? Why?

Sorry pal, I tried to help. Believe your broker and see what he says when your portifolio craters. Read something more than your stock perspectives and protect yourself. Good luck.

 

[Toddsterpatriot]

Ok, believe what you want.

I just want you to back up your claims.

How you can think the money printing the Fed has been doing has had no effect on interest rates is silly.

What effect did it have? What did rates do when they stopped printing?

Increase the supply of money and the cost of money goes down, Econ 101.

I thought printing too much money caused inflation and rising rates? Econ 101.

Maybe you should let Janet Yellen know she can't influence long term rates,

Influence? Sometimes. Control? Not so much.

are you fully invested in this stock market,

Pretty much.

The question is will you know when to sell those bonds and those high flying stocks.

Slowly, in retirement.

Interest rates are artificially low because of the Fed, the stock market is near all time highs because there is no other place to get a reasonable return (TINA), the bond market has become an exercise in the greater fool theory, that being "I willl buy this bond now and hope rates go down and a bigger fool will buy it from me". Stocks are poised to fall back when the market sentiment inevitable changes, and investors realize the valuations are too high in a slow/no growth environment. When this will happen is anybodies guess, but the longer it takes, the more violent it will be. All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

The Fed is robbing savers by not raising rates. It makes it impossible for them to get a reasonable return on their money. Those in retirement are hurt the worst.

"I thought printing too much money caused inflation and rising rates? Econ 101."

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive, read bubbles. Printing money does NOT raise rates. You really don't think that excessive supply leads to higher cost, do you?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall. Therefore, the creation of paper money by the Fed pushed interest rates lower. Consequently, the cost of mortgages, car loans and other consumer credit all fell. Lower mortgage rates kept home prices from dropping even further than they have; and lower interest rates on consumer credit supported consumer spending (and therefore the GDP).

You might want to read what some very big and successful investors are saying.
These three investing legends are warning of another crash

I hope you have at least some hedge in place against a falling market. Hey, it's your money, do what you want, but every investor is a genius in a market moving up.

Read Marc Faber, Bill Fleckenstein and Fred Hickey if you want a perspective from somebody other than your stock broker.

Good luck, I hope your retirement nest egg is protected.

Interest rates are artificially low because of the Fed

Which ones?

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive

Inflation makes bonds go down. Are they going down?

Printing money does NOT raise rates.

Look at Venezuela and Zimbabwe. They print, they have inflation and high rates.
We have neither.

All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

Who at the Fed believes they can avoid downturns? I think they're pretty clear that their powers are limited.

The Fed is robbing savers by not raising rates.

Nobody is borrowing, everyone wants to be in cash, how high should rates be?
If the Fed let overnight rates float, do you think they'd increase? How much? Why?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall.

And when they stopped printing, what did yields do?

Consequently, the cost of mortgages, car loans and other consumer credit all fell.

So people who had mortgages and other loans, saved money.
Thanks Fed.

Which rates? Better question is which aren't. Feds buy treasuries which drives price up/rates down. It ripples thru to all interest bearing products save credit card debt. Certainly mortgage rates, nearly all bond rates, stocks paying dividends go up as investors chase returns.

Inflation makes bonds go down is not absolute. The inflation we have is not in the typical CPI measurement. It is asset inflation, stocks, bonds, real estate. Why in an economy that has been anemic for the last 8 years, meaning no substantial growth, are asset prices going up? Wages have not increased, unemployment is a problem for middle income people. Too many part timers making less. If you are relying on the CNBC Jim Crammers of the world, you will never get the pertinent facts. Those folks want to paint a rosy picture. They have "experts" from investment banks tell you everything is fine. Did you hear about the credit bubble in 2007 from these clowns? Nope! They report, they don't tell you when it's coming.

Third world countries (Venezuela, Zimbabwe) with a fiat currency not supported by the largest economy in the world is not a good analogy to what is occurring in the US. The US dollar is the reserve currency for the world, everything is denominated in US dollars. And you can sit and believe we don't have inflation because it makes you seem rich when you are holding the assets (stocks, bonds, real estate) which are inflated. Ask yourself why IBM hasn't seen top line growth in over 4 years, ask yourself why companies BORROW cheap money to buy back their own stock, but won't invest in hiring more people, building plants or infrastructure. They want their stock price high, and have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

The Fed is not clear about anything. They have been promising interest rate hikes for 2 years, and all they have managed is one 1/4 point. Did you happen to see how the stock market reacted the next quarter?

Saying nobody is borrowing is absurd. People are borrowing, real estate prices are high because of borrowing at low rates. Apple has tons of cash, but money is so cheap they borrow to pay dividends and buy their own stock. Seriously? Nobody is borrowing. Where do you get this shit?

U.S. warns of rising car loan risk

The explosion of auto lending may be starting to hit the skids.
A top banking regulator warned that the $1 trillion car loan industry has gotten more dangerous. The Office of the Comptroller of the Currency cited "unprecedented" growth in auto loans, rising delinquencies and shrinking used car values.


The banking watchdog also pointed to cutthroat competition among banks, which has led them to relax underwriting standards.

You go ahead and thank the Fed for your great stock portfolio and all the appreciation in your real estate, I just wonder who you'll blame when your stocks start bleeding and your real estate loans go upside down. Too much CNBC is a bad thing brother.

Which rates? Better question is which aren't.

Anything longer than overnight aren't

Feds buy treasuries which drives price up/rates down.

The Fed stopped buying, what did rates do?

Inflation makes bonds go down is not absolute.

Show me an instance where inflation didn't hurt fixed rate debt.

The inflation we have is not in the typical CPI measurement.

So the inflation we aren't experiencing is why bonds aren't being harmed. Makes sense.

Ask yourself why IBM hasn't seen top line growth in over 4 years,

Bad business choices.

ask yourself why companies BORROW cheap money to buy back their own stock

Rates are low, why not?

have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

Why do you think reducing the float is artificial? Seems real to me.

The Fed is not clear about anything.

They're clear that they can't fix the economy, or avoid downturns, by adjusting rates.

Seriously? Nobody is borrowing. Where do you get this shit?

If loan demand was high, banks would be raising their lending rates.
You have a list of banks doing that?

You never answered, if the Fed let overnight rates float, do you think they'd increase? How much? Why?

Sorry pal, I tried to help. Believe your broker and see what he says when your portifolio craters. Read something more than your stock perspectives and protect yourself. Good luck.

Thanks for not backing up your claims.

 

[BuckToothMoron]

Interest rates are artificially low because of the Fed, the stock market is near all time highs because there is no other place to get a reasonable return (TINA), the bond market has become an exercise in the greater fool theory, that being "I willl buy this bond now and hope rates go down and a bigger fool will buy it from me". Stocks are poised to fall back when the market sentiment inevitable changes, and investors realize the valuations are too high in a slow/no growth environment. When this will happen is anybodies guess, but the longer it takes, the more violent it will be. All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

The Fed is robbing savers by not raising rates. It makes it impossible for them to get a reasonable return on their money. Those in retirement are hurt the worst.

"I thought printing too much money caused inflation and rising rates? Econ 101."

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive, read bubbles. Printing money does NOT raise rates. You really don't think that excessive supply leads to higher cost, do you?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall. Therefore, the creation of paper money by the Fed pushed interest rates lower. Consequently, the cost of mortgages, car loans and other consumer credit all fell. Lower mortgage rates kept home prices from dropping even further than they have; and lower interest rates on consumer credit supported consumer spending (and therefore the GDP).

You might want to read what some very big and successful investors are saying.
These three investing legends are warning of another crash

I hope you have at least some hedge in place against a falling market. Hey, it's your money, do what you want, but every investor is a genius in a market moving up.

Read Marc Faber, Bill Fleckenstein and Fred Hickey if you want a perspective from somebody other than your stock broker.

Good luck, I hope your retirement nest egg is protected.

Interest rates are artificially low because of the Fed

Which ones?

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive

Inflation makes bonds go down. Are they going down?

Printing money does NOT raise rates.

Look at Venezuela and Zimbabwe. They print, they have inflation and high rates.
We have neither.

All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

Who at the Fed believes they can avoid downturns? I think they're pretty clear that their powers are limited.

The Fed is robbing savers by not raising rates.

Nobody is borrowing, everyone wants to be in cash, how high should rates be?
If the Fed let overnight rates float, do you think they'd increase? How much? Why?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall.

And when they stopped printing, what did yields do?

Consequently, the cost of mortgages, car loans and other consumer credit all fell.

So people who had mortgages and other loans, saved money.
Thanks Fed.

Which rates? Better question is which aren't. Feds buy treasuries which drives price up/rates down. It ripples thru to all interest bearing products save credit card debt. Certainly mortgage rates, nearly all bond rates, stocks paying dividends go up as investors chase returns.

Inflation makes bonds go down is not absolute. The inflation we have is not in the typical CPI measurement. It is asset inflation, stocks, bonds, real estate. Why in an economy that has been anemic for the last 8 years, meaning no substantial growth, are asset prices going up? Wages have not increased, unemployment is a problem for middle income people. Too many part timers making less. If you are relying on the CNBC Jim Crammers of the world, you will never get the pertinent facts. Those folks want to paint a rosy picture. They have "experts" from investment banks tell you everything is fine. Did you hear about the credit bubble in 2007 from these clowns? Nope! They report, they don't tell you when it's coming.

Third world countries (Venezuela, Zimbabwe) with a fiat currency not supported by the largest economy in the world is not a good analogy to what is occurring in the US. The US dollar is the reserve currency for the world, everything is denominated in US dollars. And you can sit and believe we don't have inflation because it makes you seem rich when you are holding the assets (stocks, bonds, real estate) which are inflated. Ask yourself why IBM hasn't seen top line growth in over 4 years, ask yourself why companies BORROW cheap money to buy back their own stock, but won't invest in hiring more people, building plants or infrastructure. They want their stock price high, and have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

The Fed is not clear about anything. They have been promising interest rate hikes for 2 years, and all they have managed is one 1/4 point. Did you happen to see how the stock market reacted the next quarter?

Saying nobody is borrowing is absurd. People are borrowing, real estate prices are high because of borrowing at low rates. Apple has tons of cash, but money is so cheap they borrow to pay dividends and buy their own stock. Seriously? Nobody is borrowing. Where do you get this shit?

U.S. warns of rising car loan risk

The explosion of auto lending may be starting to hit the skids.
A top banking regulator warned that the $1 trillion car loan industry has gotten more dangerous. The Office of the Comptroller of the Currency cited "unprecedented" growth in auto loans, rising delinquencies and shrinking used car values.


The banking watchdog also pointed to cutthroat competition among banks, which has led them to relax underwriting standards.

You go ahead and thank the Fed for your great stock portfolio and all the appreciation in your real estate, I just wonder who you'll blame when your stocks start bleeding and your real estate loans go upside down. Too much CNBC is a bad thing brother.

Which rates? Better question is which aren't.

Anything longer than overnight aren't

Feds buy treasuries which drives price up/rates down.

The Fed stopped buying, what did rates do?

Inflation makes bonds go down is not absolute.

Show me an instance where inflation didn't hurt fixed rate debt.

The inflation we have is not in the typical CPI measurement.

So the inflation we aren't experiencing is why bonds aren't being harmed. Makes sense.

Ask yourself why IBM hasn't seen top line growth in over 4 years,

Bad business choices.

ask yourself why companies BORROW cheap money to buy back their own stock

Rates are low, why not?

have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

Why do you think reducing the float is artificial? Seems real to me.

The Fed is not clear about anything.

They're clear that they can't fix the economy, or avoid downturns, by adjusting rates.

Seriously? Nobody is borrowing. Where do you get this shit?

If loan demand was high, banks would be raising their lending rates.
You have a list of banks doing that?

You never answered, if the Fed let overnight rates float, do you think they'd increase? How much? Why?

Sorry pal, I tried to help. Believe your broker and see what he says when your portifolio craters. Read something more than your stock perspectives and protect yourself. Good luck.

Thanks for not backing up your claims.

Time will tell, just read something other than the crap your broker feeds you. I didn't get hurt in 2007, and since 2002 my investment portfolio is up over 350%. The S&P has only doubled. I am not interested in debating you, you clearly have some misguided beliefs (more money supply pushes rates up, the only measure of inflation is the CPI, the Fed can fix the economy and help you avoid pain). Ask the the Japanese how well the stock market can perform during a recession when a central bank cranks up the printing press. We are in uncharted territory with every central bank fully engaged in dovish accommodation of money. Like I said , good luck.

 

[Toddsterpatriot]

Interest rates are artificially low because of the Fed

Which ones?

Printing money will cause inflation. That is why stocks, real estate and bonds are so expensive

Inflation makes bonds go down. Are they going down?

Printing money does NOT raise rates.

Look at Venezuela and Zimbabwe. They print, they have inflation and high rates.
We have neither.

All this is caused by a hubris central bank that believes they can avoid natural downturns thru monetary policy.

Who at the Fed believes they can avoid downturns? I think they're pretty clear that their powers are limited.

The Fed is robbing savers by not raising rates.

Nobody is borrowing, everyone wants to be in cash, how high should rates be?
If the Fed let overnight rates float, do you think they'd increase? How much? Why?

Next, that “injection” of $2 trillion of new money meant that there was a lot of money sloshing around in the financial markets. Some of that new money was invested in bonds, which pushed up the price of those bonds. When bond prices rise, their yields (or the interest rate the bonds pay) fall.

And when they stopped printing, what did yields do?

Consequently, the cost of mortgages, car loans and other consumer credit all fell.

So people who had mortgages and other loans, saved money.
Thanks Fed.

Which rates? Better question is which aren't. Feds buy treasuries which drives price up/rates down. It ripples thru to all interest bearing products save credit card debt. Certainly mortgage rates, nearly all bond rates, stocks paying dividends go up as investors chase returns.

Inflation makes bonds go down is not absolute. The inflation we have is not in the typical CPI measurement. It is asset inflation, stocks, bonds, real estate. Why in an economy that has been anemic for the last 8 years, meaning no substantial growth, are asset prices going up? Wages have not increased, unemployment is a problem for middle income people. Too many part timers making less. If you are relying on the CNBC Jim Crammers of the world, you will never get the pertinent facts. Those folks want to paint a rosy picture. They have "experts" from investment banks tell you everything is fine. Did you hear about the credit bubble in 2007 from these clowns? Nope! They report, they don't tell you when it's coming.

Third world countries (Venezuela, Zimbabwe) with a fiat currency not supported by the largest economy in the world is not a good analogy to what is occurring in the US. The US dollar is the reserve currency for the world, everything is denominated in US dollars. And you can sit and believe we don't have inflation because it makes you seem rich when you are holding the assets (stocks, bonds, real estate) which are inflated. Ask yourself why IBM hasn't seen top line growth in over 4 years, ask yourself why companies BORROW cheap money to buy back their own stock, but won't invest in hiring more people, building plants or infrastructure. They want their stock price high, and have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

The Fed is not clear about anything. They have been promising interest rate hikes for 2 years, and all they have managed is one 1/4 point. Did you happen to see how the stock market reacted the next quarter?

Saying nobody is borrowing is absurd. People are borrowing, real estate prices are high because of borrowing at low rates. Apple has tons of cash, but money is so cheap they borrow to pay dividends and buy their own stock. Seriously? Nobody is borrowing. Where do you get this shit?

U.S. warns of rising car loan risk

The explosion of auto lending may be starting to hit the skids.
A top banking regulator warned that the $1 trillion car loan industry has gotten more dangerous. The Office of the Comptroller of the Currency cited "unprecedented" growth in auto loans, rising delinquencies and shrinking used car values.


The banking watchdog also pointed to cutthroat competition among banks, which has led them to relax underwriting standards.

You go ahead and thank the Fed for your great stock portfolio and all the appreciation in your real estate, I just wonder who you'll blame when your stocks start bleeding and your real estate loans go upside down. Too much CNBC is a bad thing brother.

Which rates? Better question is which aren't.

Anything longer than overnight aren't

Feds buy treasuries which drives price up/rates down.

The Fed stopped buying, what did rates do?

Inflation makes bonds go down is not absolute.

Show me an instance where inflation didn't hurt fixed rate debt.

The inflation we have is not in the typical CPI measurement.

So the inflation we aren't experiencing is why bonds aren't being harmed. Makes sense.

Ask yourself why IBM hasn't seen top line growth in over 4 years,

Bad business choices.

ask yourself why companies BORROW cheap money to buy back their own stock

Rates are low, why not?

have determined that they are better borrowing money to reduce the float and artificially inflate the stock price.

Why do you think reducing the float is artificial? Seems real to me.

The Fed is not clear about anything.

They're clear that they can't fix the economy, or avoid downturns, by adjusting rates.

Seriously? Nobody is borrowing. Where do you get this shit?

If loan demand was high, banks would be raising their lending rates.
You have a list of banks doing that?

You never answered, if the Fed let overnight rates float, do you think they'd increase? How much? Why?

Sorry pal, I tried to help. Believe your broker and see what he says when your portifolio craters. Read something more than your stock perspectives and protect yourself. Good luck.

Thanks for not backing up your claims.

Time will tell, just read something other than the crap your broker feeds you. I didn't get hurt in 2007, and since 2002 my investment portfolio is up over 350%. The S&P has only doubled. I am not interested in debating you, you clearly have some misguided beliefs (more money supply pushes rates up, the only measure of inflation is the CPI, the Fed can fix the economy and help you avoid pain). Ask the the Japanese how well the stock market can perform during a recession when a central bank cranks up the printing press. We are in uncharted territory with every central bank fully engaged in dovish accommodation of money. Like I said , good luck.

you clearly have some misguided beliefs

If only you had proven that.

 

[eflatminor]

History is replete with examples, central price controls do not work. This is true whether it's the Federal Reserve controlling the price of money or the Soviet Union controlling the price of grain...or toilet paper.

In the 130 years or so before the Fed, inflation was right around zero. Goods and services in demand saw prices increase, others saw prices fall...overall, about flat. Since the Fed in 1913, inflation is up over 2500%.

Inflation, the most regressive tax of them all.

End the Fed.

In the 130 years or so before the Fed, inflation was right around zero.

No it wasn't.

That would be counter to my understanding. Please, enlighten me. Link?

Your understanding was that prices were flat every year between 1783-1913? Seriously?
If prices drop 10% this year and rise 11.11% next year, would you consider that 0% inflation?

Ah, perhaps I wasn't clear. Allow me to restate: When looked at OVER TIME, from the founding of the country until the formation of the Fed in 1913, the AVERAGE rate of inflation was zero. Sometimes up, sometimes down, overall flat. Stated differently, a widget that cost a dollar in 1790 cost about a dollar in 1912.

Since the Fed, up about 2500%. So, a widget that cost a dollar in 1913 cost about $25 today. It's even worse if you include the prices in markets not considered in the official inflation index, like food and energy prices.

Again, the most regressive tax of the all. Meaning, it's poor people the take the brunt of the Fed's inflation.

from the founding of the country until the formation of the Fed in 1913, the AVERAGE rate of inflation was zero.

Before the Fed, price spikes and bouts of deflation. Prices were not stable.

So, a widget that cost a dollar in 1913 cost about $25 today.

Yes, holding cash for a long time is a money loser. So don't.

It's even worse if you include the prices in markets not considered in the official inflation index, like food and energy prices.

Food and energy are, and always have been, included in official inflation indexes.

Prices are not stable now, they CONSTANTLY go up, even during the longest economic downturn in history, which makes zero sense. The Fed prescribes this. Good for banks, bad for the people, especially poor people.

Hope that helps you.

 

[Toddsterpatriot]

In the 130 years or so before the Fed, inflation was right around zero.

No it wasn't.

That would be counter to my understanding. Please, enlighten me. Link?

Your understanding was that prices were flat every year between 1783-1913? Seriously?
If prices drop 10% this year and rise 11.11% next year, would you consider that 0% inflation?

Ah, perhaps I wasn't clear. Allow me to restate: When looked at OVER TIME, from the founding of the country until the formation of the Fed in 1913, the AVERAGE rate of inflation was zero. Sometimes up, sometimes down, overall flat. Stated differently, a widget that cost a dollar in 1790 cost about a dollar in 1912.

Since the Fed, up about 2500%. So, a widget that cost a dollar in 1913 cost about $25 today. It's even worse if you include the prices in markets not considered in the official inflation index, like food and energy prices.

Again, the most regressive tax of the all. Meaning, it's poor people the take the brunt of the Fed's inflation.

from the founding of the country until the formation of the Fed in 1913, the AVERAGE rate of inflation was zero.

Before the Fed, price spikes and bouts of deflation. Prices were not stable.

So, a widget that cost a dollar in 1913 cost about $25 today.

Yes, holding cash for a long time is a money loser. So don't.

It's even worse if you include the prices in markets not considered in the official inflation index, like food and energy prices.

Food and energy are, and always have been, included in official inflation indexes.

Prices are not stable now, they CONSTANTLY go up, even during the longest economic downturn in history, which makes zero sense. The Fed prescribes this. Good for banks, bad for the people, especially poor people.

Hope that helps you.

Prices are not stable now, they CONSTANTLY go up,

Unstable before, unstable now. Okay.

Now how is this worse than periods of inflation followed by periods of deflation?
You don't think deflation is a good thing, do you?

 

[BuckToothMoron]

In the 130 years or so before the Fed, inflation was right around zero.

No it wasn't.

That would be counter to my understanding. Please, enlighten me. Link?

Your understanding was that prices were flat every year between 1783-1913? Seriously?
If prices drop 10% this year and rise 11.11% next year, would you consider that 0% inflation?

Ah, perhaps I wasn't clear. Allow me to restate: When looked at OVER TIME, from the founding of the country until the formation of the Fed in 1913, the AVERAGE rate of inflation was zero. Sometimes up, sometimes down, overall flat. Stated differently, a widget that cost a dollar in 1790 cost about a dollar in 1912.

Since the Fed, up about 2500%. So, a widget that cost a dollar in 1913 cost about $25 today. It's even worse if you include the prices in markets not considered in the official inflation index, like food and energy prices.

Again, the most regressive tax of the all. Meaning, it's poor people the take the brunt of the Fed's inflation.

from the founding of the country until the formation of the Fed in 1913, the AVERAGE rate of inflation was zero.

Before the Fed, price spikes and bouts of deflation. Prices were not stable.

So, a widget that cost a dollar in 1913 cost about $25 today.

Yes, holding cash for a long time is a money loser. So don't.

It's even worse if you include the prices in markets not considered in the official inflation index, like food and energy prices.

Food and energy are, and always have been, included in official inflation indexes.

Prices are not stable now, they CONSTANTLY go up, even during the longest economic downturn in history, which makes zero sense. The Fed prescribes this. Good for banks, bad for the people, especially poor people.

Hope that helps you.

You're right, the Fed is watching the stock market and adjusting policy accordingly. That's great if you are in the market, the Fed has you back. But if you're living off fixed income and in low risk assets you're going to get screwed. No doubt the Fed has eliminated a lot of short term swings in the economy, but at what cost. And our central bank is not alone in this. All major central banks are trying this and it will end badly. We just don't know when. Anybody who thinks things are just peachy better start paying attention. Read this-
Column: The monetary bubble to end all bubbles is coming

 

[Indeependent]

Gee, how can the Fed raise rates when 98+% of the population is taking pay cuts?
HINT: It can't.

 

[EdwardBaiamonte]

Gee, how can the Fed raise rates when 98+% of the population is taking pay cuts?
HINT: It can't.

1) income is rising in America so 98% are not taking pay cuts.
2) raising rates to normal levels will boost economy and make pay increases more likely

 

[Toddsterpatriot]

Gee, how can the Fed raise rates when 98+% of the population is taking pay cuts?
HINT: It can't.

98+% of the population is taking pay cuts?

Hint: they aren't.
Compensation of employees is up from $7.787 trillion in 2009 to $9.693 trillion last year.

http://www.bea.gov/itable/iTable.cf...=1&904=2000&903=58&906=a&905=2016&910=x&911=0

 

[Toddsterpatriot]

Gee, how can the Fed raise rates when 98+% of the population is taking pay cuts?
HINT: It can't.

1) income is rising in America so 98% are not taking pay cuts.
2) raising rates to normal levels will boost economy and make pay increases more likely

raising rates to normal levels will boost economy and make pay increases more likely

The Fed only controls overnight rates. How will raising those help the economy? Increase pay?

And what is a "normal level" for rates?

 

[Indeependent]

Gee, how can the Fed raise rates when 98+% of the population is taking pay cuts?
HINT: It can't.

98+% of the population is taking pay cuts?

Hint: they aren't.
Compensation of employees is up from $7.787 trillion in 2009 to $9.693 trillion last year.

http://www.bea.gov/itable/iTable.cf...=1&904=2000&903=58&906=a&905=2016&910=x&911=0

HINT: Most people are NOT on the receiving end of those rolled up numbers.

 

[Toddsterpatriot]

Gee, how can the Fed raise rates when 98+% of the population is taking pay cuts?
HINT: It can't.

98+% of the population is taking pay cuts?

Hint: they aren't.
Compensation of employees is up from $7.787 trillion in 2009 to $9.693 trillion last year.

http://www.bea.gov/itable/iTable.cf...=1&904=2000&903=58&906=a&905=2016&910=x&911=0

HINT: Most people are NOT on the receiving end of those rolled up numbers.

Can you prove it?
Because $1.9 trillion is an awful lot of money.

 

[Indeependent]

Gee, how can the Fed raise rates when 98+% of the population is taking pay cuts?
HINT: It can't.

98+% of the population is taking pay cuts?

Hint: they aren't.
Compensation of employees is up from $7.787 trillion in 2009 to $9.693 trillion last year.

http://www.bea.gov/itable/iTable.cf...=1&904=2000&903=58&906=a&905=2016&910=x&911=0

HINT: Most people are NOT on the receiving end of those rolled up numbers.

Can you prove it?
Because $1.9 trillion is an awful lot of money.

And can YOU prove who's getting it?
Didn't think so.
The rich get richer and the Middle Class gets smaller and the poor get poorer.

 

[Toddsterpatriot]

Gee, how can the Fed raise rates when 98+% of the population is taking pay cuts?
HINT: It can't.

98+% of the population is taking pay cuts?

Hint: they aren't.
Compensation of employees is up from $7.787 trillion in 2009 to $9.693 trillion last year.

http://www.bea.gov/itable/iTable.cf...=1&904=2000&903=58&906=a&905=2016&910=x&911=0

HINT: Most people are NOT on the receiving end of those rolled up numbers.

Can you prove it?
Because $1.9 trillion is an awful lot of money.

And can YOU prove who's getting it?
Didn't think so.
The rich get richer and the Middle Class gets smaller and the poor get poorer.

And can YOU prove who's getting it?

Millions more employed, trillions in additional compensation.
Looks like lots of people are getting it.

The rich get richer and the Middle Class gets smaller and the poor get poorer.

The rich earning lots of wages and salary now?

 

[Indeependent]

Gee, how can the Fed raise rates when 98+% of the population is taking pay cuts?
HINT: It can't.

98+% of the population is taking pay cuts?

Hint: they aren't.
Compensation of employees is up from $7.787 trillion in 2009 to $9.693 trillion last year.

http://www.bea.gov/itable/iTable.cf...=1&904=2000&903=58&906=a&905=2016&910=x&911=0

HINT: Most people are NOT on the receiving end of those rolled up numbers.

Can you prove it?
Because $1.9 trillion is an awful lot of money.

And can YOU prove who's getting it?
Didn't think so.
The rich get richer and the Middle Class gets smaller and the poor get poorer.

And can YOU prove who's getting it?

Millions more employed, trillions in additional compensation.
Looks like lots of people are getting it.

The rich get richer and the Middle Class gets smaller and the poor get poorer.

The rich earning lots of wages and salary now?

Millions more employed...You must LOVE Obama.
Except for the fact that most of those jobs are for $9.00/hour.
But as a Globalist you probably have no problem with that.

Once again in reaction to your enthusiasm that EVERYONE is getting a significant Piece of the Action...
And can YOU prove who's getting it?
Didn't think so.

 

[Toddsterpatriot]

98+% of the population is taking pay cuts?

Hint: they aren't.
Compensation of employees is up from $7.787 trillion in 2009 to $9.693 trillion last year.

http://www.bea.gov/itable/iTable.cf...=1&904=2000&903=58&906=a&905=2016&910=x&911=0

HINT: Most people are NOT on the receiving end of those rolled up numbers.

Can you prove it?
Because $1.9 trillion is an awful lot of money.

And can YOU prove who's getting it?
Didn't think so.
The rich get richer and the Middle Class gets smaller and the poor get poorer.

And can YOU prove who's getting it?

Millions more employed, trillions in additional compensation.
Looks like lots of people are getting it.

The rich get richer and the Middle Class gets smaller and the poor get poorer.

The rich earning lots of wages and salary now?

Millions more employed...You must LOVE Obama.
Except for the fact that most of those jobs are for $9.00/hour.
But as a Globalist you probably have no problem with that.

Once again in reaction to your enthusiasm that EVERYONE is getting a significant Piece of the Action...
And can YOU prove who's getting it?
Didn't think so.

...You must LOVE Obama.

Obama sucks.

Except for the fact that most of those jobs are for $9.00/hour.

If that were the case, most new jobs $9.00 an hour and no raises for middle class or poor, the increase in compensation would be much, much less than $1.9 trillion since 2009.