The President has no control over what the fed does with interest rates.
DT wanted a bigger cut, and so did the market.
The market was at 18,000 when DT was elected.
Perspective.
Essential Economics for Politicians
- Thread starter Bruddah IZ
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DT wanted a bigger cut, and so did the market.
The market was at 18,000 when DT was elected.
Perspective.
My statement was correct and the market rose much more, percentage wise, under Obama.
Learn.
Bruddah IZ
DA
Actually, itʻs the other way around. More money in the system, drives down interest rates , incentivizes borrowing, and drives up cost when more dollars are competing for the same amount of goods and services pre-rate cut.
Bruddah IZ
DA
6 straight years of QE. Learn.
It’s both. The more money will be flying around because it’s cheaper to borrow. Rates were lowered today not by “more money in the system,” but by fiat, so people will borrow more.
Bruddah IZ
DA
The Fed is still holding 4 trillion in bonds from 6 straight years of QE under Obama.
Incorrect. Higher stock market, low inflation. QE had nothing to do with anything except the first couple of years it saved our economy from crashing.
Remember when the fake news said the economy would crash when Trump was elected?
No crash and no QE.
Who pays back the 4 trillion?
Bruddah IZ
DA
Sucker. When you save the bond market with 6 straight years of QE, guess what that does for the stock marketʻs lenders? Low inflation- when you bail out the banks and then pay them interest on their reserves, guess what they do? They donʻt lend as much. No lend, no inflation. In fact, the largest banks held 3 to 7 times more life insurance than real estate according to FDIC balance sheets. Learn
Sheriff Joe
DA
We know.
Bruddah IZ
DA
You donʻt know what fiat is do you? Hint: we agree.
What do you think today was, if not QE?
Show me where the news said that anyway. NY Times or Washington Post or CNN or NBC.
Do you have every single thing backwards about economics? Is that why you’re poor? By “poor” I mean you don’t make much money. Because you don’t understand how it works. Banks have been lending just fine, now people will borrow even more.
Sheriff Joe
DA
All of them.
Where, exactly? Economy will crash? Where does it say that?
Bruddah IZ
DA
I donʻt expect you to understand banking when you donʻt understand simple finance terms like CLTV, ROA and ROE. Run along poser.
Sheriff Joe
DA
All of you smart guys, just go back and look in the trump thread. Husker did and all you people get your talking points from the same place.
Trust me.
Sheriff Joe
DA
Posing must be hard work.
Bruddah IZ
DA
Yes they have. But they make more and safer money on their reserves when they lend less to the public because the Fed incentivize$ them to do so to hold down inflation. The Fed has been targeting inflation for at least the last 10 years. But the uneducated look at the CPI to explain price inflation and find none because the asset classes that cause financial crisis are not a part of the basket of goods that generates CPI. Yes, people will borrow more as a result of rate cuts and no doubt theyʻll need to, to compete with other borrowers who will drive up prices in a bid war. But make no mistake, the Fed is still sitting on 4 trillion in bonds.