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Link Posted: 12/19/2018 3:48:28 PM EDT
[#1]
Motherfuckers
Link Posted: 12/19/2018 3:49:31 PM EDT
[#2]
Rigged system is doing what it does best, the Fed is decoupled from the market and out of touch!

8 years of 0% with the brown clown in office and now watch who gets blamed in the news, the entire system is nothing but a giant joke. Watch for a major downturn in the markets the first week of January, it’s gonna get real ugly and real fast!
Link Posted: 12/19/2018 3:50:38 PM EDT
[#3]
Fed and their Wall St goombahs (and insider-immune congress) have already harvested profits ahead of the announcement.

Now they will kill the economy through the 2020 election. Depending on who wins, they will resuscitate it.

Pump and dump on a massive scale.
Link Posted: 12/19/2018 3:50:42 PM EDT
[#4]
Link Posted: 12/19/2018 3:51:10 PM EDT
[#5]
Aren't interest rates supposed to reflect loan default rates?  I'm no finance expert, but ZIRP seem to indicate there are no loan defaults in the economy.  How can that be?
Link Posted: 12/19/2018 3:52:18 PM EDT
[#6]
Meh fuck it all.

"We need inflation"  no wait "We need deflation,"  fuck all this shit.

Tilt at windmills.  Markets are really adept when there is no centralization.
Link Posted: 12/19/2018 3:52:26 PM EDT
[#7]
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Sure, that's on a instrument with no risk.
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I'm REALLY starting to sound like a broken record here.  Once again.

If someone buys a 1-Yr treasury today, they make 2.72%.  Minus annualized inflation as of November of 2.2% = 0.52% real rate of interest.

And that's with the official inflation rate .
Sure, that's on a instrument with no risk.


It's not an inappropriate comparison.  Use a savings account return if you want.  2.25% - 2.2% inflation.

The point is that the Fed really isn't raising interest rates if inflation keeps right behind it.
Link Posted: 12/19/2018 3:52:28 PM EDT
[#8]
Discussion ForumsJump to Quoted PostQuote History
Almost like they help a certain political party.

If the SEC didn't watch pr0n 24x7, we might have a glimpse as to what is really going on.
Link Posted: 12/19/2018 3:53:25 PM EDT
[#9]
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Quoted:

LOL Powell is Trump's guy.

For the last 5 years of BHO's presidency, GD screamed about how the Fed needed to stop printing money and needed to start slowly raising interest rates.

Now that they have started doing just that, it's some grand conspiracy manufactured to take down Trump.  
View Quote
Link Posted: 12/19/2018 3:54:50 PM EDT
[#10]
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Obama openly threatened the banks and they kept it at 0.25% for most of his term.
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Of course they did.

They had no choice.  Trump backed them into a corner.  If they had not raised rates, it would have signaled that they had caved to political pressure, and all faith in the system would have been lost.

Perversely, if Trump had been quiet, he might have gotten what he wanted.
Obama openly threatened the banks and they kept it at 0.25% for most of his term.
Can you point me to Obama openly threatening the Fed?
Link Posted: 12/19/2018 3:58:21 PM EDT
[#11]
The rate hike isn’t even the big news. QT is.

Attachment Attached File
Link Posted: 12/19/2018 3:58:23 PM EDT
[#12]
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Quoted:

LOL Powell is Trump's guy.

For the last 5 years of BHO's presidency, GD screamed about how the Fed needed to stop printing money and needed to start slowly raising interest rates.

Now that they have started doing just that, it's some grand conspiracy manufactured to take down Trump.  
Like I posted earlier, I think its a board comprised of Fed members who votes on this.
FOMC
Link Posted: 12/19/2018 3:59:37 PM EDT
[#13]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

LOL Powell is Trump's guy.

For the last 5 years of BHO's presidency, GD screamed about how the Fed needed to stop printing money and needed to start slowly raising interest rates.

Now that they have started doing just that, it's some grand conspiracy manufactured to take down Trump.  
View Quote
says the nevertrumper

and still not sorry your gal lost
Link Posted: 12/19/2018 4:00:18 PM EDT
[#14]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Almost like they help a certain political party.

If the SEC didn't watch pr0n 24x7, we might have a glimpse as to what is really going on.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Almost like they help a certain political party.

If the SEC didn't watch pr0n 24x7, we might have a glimpse as to what is really going on.
SEC has no authority over the Fed. Neither does the President or Congress
Link Posted: 12/19/2018 4:01:26 PM EDT
[#15]
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Up 97 points right now.
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The Dow was up 350 before this decision was announced.  Now the numbers are turning negative.  
Up 97 points right now.
With the hope there will be no more rate hikes for a while

We didn't need this one
Link Posted: 12/19/2018 4:05:19 PM EDT
[#16]
Just an 800 point drop. No biggy
Link Posted: 12/19/2018 4:06:18 PM EDT
[#17]
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Obama had zero interest rate.
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Anything above Zero is racist.
Link Posted: 12/19/2018 4:07:29 PM EDT
[#18]
If a Dem president is elected next election what is the over/under that the rates drop immediately?

#SWAMPLIFE
Link Posted: 12/19/2018 4:07:47 PM EDT
[#19]
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With the hope there will be no more rate hikes for a while

We didn't need this one
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The Dow was up 350 before this decision was announced.  Now the numbers are turning negative.  
Up 97 points right now.
With the hope there will be no more rate hikes for a while

We didn't need this one
-2% now.
Link Posted: 12/19/2018 4:10:22 PM EDT
[#20]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Be ready for the recession because its coming. Every time the economy is rolling along the Fed pops it.

They popped the dot com and they popped the housing bubble.

Sock your money away because its coming.
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The dot com bubble popped because the stocks were way overvalued.  At one time e-Bay was worth more than all us based airlines combined.  Exactly what had assets does e-Bay have?   All a person had to do was come up with a few lines of code and go public.  The whole dot cam thing was purely speculative with even so called "professional" money managers getting caught up in it.  The stock market is not a logical place.

The housing bubble popped because the secretary of HUD, a guy named Andrew Cuomo, forced banks to give out sub prime mortgages to people who could not afford them.  This artificially inflated housing prices. for awhile.  The bubble was deliberately popped in 2008 so Obama could win.

Why sock money away of it is not earning interest?  I am an official old fart and can remember when my daily dividend saving account paid 5.75% interest.  Surprisingly enough, the economy was doing pretty good too.

Do not make the mistake of equating an overpriced stock market to a healthy economy.
Link Posted: 12/19/2018 4:10:56 PM EDT
[#21]
We were finally seeing a dip in rates and more confidence in the market. I am going to lose business over this.
Link Posted: 12/19/2018 4:11:22 PM EDT
[#22]
Motherfucker deep state
Link Posted: 12/19/2018 4:15:10 PM EDT
[#23]
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Sure, that's on a instrument with no risk.
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I'm REALLY starting to sound like a broken record here.  Once again.

If someone buys a 1-Yr treasury today, they make 2.72%.  Minus annualized inflation as of November of 2.2% = 0.52% real rate of interest.

And that's with the official inflation rate .
Sure, that's on a instrument with no risk.
Don't mistake the risk free rate of return as actually being risk free.  There is a tiny bit of credit risk, liquidity, and a lot of interest rate risk
Link Posted: 12/19/2018 4:18:00 PM EDT
[#24]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

Don't mistake the risk free rate of return as actually being risk free.  There is a tiny bit of credit risk, liquidity, and a lot of interest rate risk
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username and avatar checks out.
Link Posted: 12/19/2018 4:24:30 PM EDT
[#25]
Trump should feel flattered.  Obama's economy was in no danger of running out of control, thus zero interest rate.  Trump's economy is so good that rate increases are needed to control it.
Link Posted: 12/19/2018 4:27:33 PM EDT
[#26]
3:26PM Eastern and DOW is down 415 points.  Was up prior to the announcement.
Link Posted: 12/19/2018 4:29:39 PM EDT
[#27]
Realistically rates need to be about 5% and the sooner Trump quits bitching about it and accepts economic reality, the sooner we can actually have the legitimate recovery, that we never had after the last recession
Link Posted: 12/19/2018 4:32:15 PM EDT
[#28]
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Aren't interest rates supposed to reflect loan default rates?  I'm no finance expert, but ZIRP seem to indicate there are no loan defaults in the economy.  How can that be?
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No
Link Posted: 12/19/2018 4:35:47 PM EDT
[#29]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

Don't mistake the risk free rate of return as actually being risk free.  There is a tiny bit of credit risk, liquidity, and a lot of interest rate risk
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Yes but it is the most risk-free investment instrument an individual has access to, is it not?
Link Posted: 12/19/2018 4:36:21 PM EDT
[#30]
Truth.  Gotta pay the piper from the 2008 dump

Discussion ForumsJump to Quoted PostQuote History
Quoted:
Realistically rates need to be about 5% and the sooner Trump quits bitching about it and accepts economic reality, the sooner we can actually have the legitimate recovery, that we never had after the last recession
View Quote
Link Posted: 12/19/2018 4:39:17 PM EDT
[#31]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Realistically rates need to be about 5% and the sooner Trump quits bitching about it and accepts economic reality, the sooner we can actually have the legitimate recovery, that we never had after the last recession
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Lol... no.  He understands it and is getting out in front of the narrative.
Link Posted: 12/19/2018 4:42:46 PM EDT
[#32]
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Quoted:
Yes but it is the most risk-free investment instrument an individual has access to, is it not?
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Quoted:
Quoted:

Don't mistake the risk free rate of return as actually being risk free.  There is a tiny bit of credit risk, liquidity, and a lot of interest rate risk
Yes but it is the most risk-free investment instrument an individual has access to, is it not?
Id say it is a proxy for a credit risk free investment of identical terms. It still has credit risk but so does everything in the same country as a country's ability to pay a debt.

It is important to understand when people call it risk free they mean default risk,  not all the other risks.
Link Posted: 12/19/2018 4:44:03 PM EDT
[#33]
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Quoted:
yep,

can't have Trump be successful, so got to raise interest rates to kill the economy

edit - feds kept the interest rate at zero to an effective negative interest rate during obama's term, to protect him and hide the recession while bho was in office.

now, they got to raise it through the roof to kill Trump's successful one, where everyone is making money
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Or you know, to keep inflation from getting out of control.
But we'll go with your conspiracy.  It's juicier.
Link Posted: 12/19/2018 4:49:24 PM EDT
[#34]
Everyone bitching about the rate hike is no different than any other welfare recipient.

The Fed and .gov manipulated the shit out of the markets to save your stupid asses..... FOR OVER A FUCKING DECADE....., and now when they are trying to reel in some of that government cheese, you're up in arms about "Muh investments!".

How fucking stupid do you have to be to think any of this market is real?

P/E ratios are fucked.  Corporate debt is fucked. Pensions fucked. Hedge funds closing left and right. .........

Market has been on life support for 10 goddamn years, GDP a function of increasing debt for the last 40 years.. and if this comes as a suprise to any of you..... God help ya.
Link Posted: 12/19/2018 4:49:57 PM EDT
[#35]
Kill it! Kill the economy!
Link Posted: 12/19/2018 4:52:02 PM EDT
[#36]
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And now the housing market will crash in the next few months. Not going to say it will be like the bubble burst 10 years ago, but it will definitely decline significantly over the next 6 months. Spring/early summer is a huge real housing sales time and we will know by July 4th just how bad it is.

The economy right now is excellent EXCEPT for the sentiment that people are feeling and hearing from the MSM about how it's all going to come crashing down. So a lot of people react without data, just feelings based on what they heard or think will happen.
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The economy is almost always based on consumer feelings.
Link Posted: 12/19/2018 5:00:33 PM EDT
[#37]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
LOL Powell is Trump's guy.

For the last 5 years of BHO's presidency, GD screamed about how the Fed needed to stop printing money and needed to start slowly raising interest rates.

Now that they have started doing just that, it's some grand conspiracy manufactured to take down Trump.  
View Quote View All Quotes
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
yep,

can't have Trump be successful, so got to raise interest rates to kill the economy

edit - feds kept the interest rate at zero to an effective negative interest rate during obama's term, to protect him and hide the recession while bho was in office.

now, they got to raise it through the roof to kill Trump's successful one, where everyone is making money
I legitimately believe that.
LOL Powell is Trump's guy.

For the last 5 years of BHO's presidency, GD screamed about how the Fed needed to stop printing money and needed to start slowly raising interest rates.

Now that they have started doing just that, it's some grand conspiracy manufactured to take down Trump.  
This thread is a Trump sycophant safe space where they can talk about the days of old (where everything was everyone else's fault).  The rest of GD hates Trump now.
Link Posted: 12/19/2018 5:03:12 PM EDT
[#38]
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Quoted:
lol

"Bubbles are good when our guy is in office"
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Where exactly is the bubble?
Link Posted: 12/19/2018 5:03:58 PM EDT
[#39]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Everyone bitching about the rate hike is no different than any other welfare recipient.

The Fed and .gov manipulated the shit out of the markets to save your stupid asses..... FOR OVER A FUCKING DECADE....., and now when they are trying to reel in some of that government cheese, you're up in arms about "Muh investments!".

How fucking stupid do you have to be to think any of this market is real?

P/E ratios are fucked.  Corporate debt is fucked. Pensions fucked. Hedge funds closing left and right. .........

Market has been on life support for 10 goddamn years, GDP a function of increasing debt for the last 40 years.. and if this comes as a suprise to any of you..... God help ya.
View Quote
Raising rates will make servicing the debt that much more difficult as well.
But you can't run ZIRP forever.  This whole 'recovery' is just a giant bubble of debt, waiting to pop.
Sure there's some good economic news, some growth, but nothing like the recovery people think was 'real'.

I'm curious if we'll go into a decade of stagflation like Japan did.
Link Posted: 12/19/2018 5:05:49 PM EDT
[#40]
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Quoted:
I read a financial page commentary that said something akin to "The Fed isn't there to react to loony stock market traders; they're there to keep the ACTUAL economy running smoothly" - and the economy is still doing great, even if the stock market has been pushed down by nervous nellies.
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Our interest rates are considerably higher than most of our first world competitors.

Too high interest rates have real effects on the economy beyond real estate and car sales, including making the dollar too expensive, which wrecks our exports, makes imports dirt cheap, and causes large in-flows of foreign money.
Link Posted: 12/19/2018 5:08:44 PM EDT
[#41]
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If anyone needs a primer on what QT is: https://dailyreckoning.com/quantitative-tightening/
Link Posted: 12/19/2018 5:09:27 PM EDT
[#42]
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Yes, the Fed didn't sell one QE asset during the Obama presidency.  So far this year, they have dumped 10 percent of the QE-acquired assets on the market.
Link Posted: 12/19/2018 5:12:56 PM EDT
[#43]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Everyone bitching about the rate hike is no different than any other welfare recipient.

The Fed and .gov manipulated the shit out of the markets to save your stupid asses..... FOR OVER A FUCKING DECADE....., and now when they are trying to reel in some of that government cheese, you're up in arms about "Muh investments!".

How fucking stupid do you have to be to think any of this market is real?

P/E ratios are fucked. Corporate debt is fucked. Pensions fucked. Hedge funds closing left and right. .........

Market has been on life support for 10 goddamn years, GDP a function of increasing debt for the last 40 years.. and if this comes as a suprise to any of you..... God help ya.
View Quote
Really?  S&P PE ratio today would support an interest rate of 5.2 percent.
Link Posted: 12/19/2018 5:15:36 PM EDT
[#44]
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Powell was nominated by Trump....
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Powell was first nominated by Obama (to the Board of Governors).  Out of 11 on the FOMC only about three are actual Trump appointees with real GOP credentials and some of those may be never-Trumpers.  There are two vacant Fed Board positions and the Dems in the Senate have blocked Trump from filling those seats.

They operate by "consensus" which means if the Dems still have the majority on the FOMC the committee votes the majority way.  Right now the vote appears to be 6 to 3 to keep raising rates.  If Trump gets his two governors on the Board them it becomes 6-5.

The FOMC raised interest rates once during Obama's term.  One time in eight years.  How many interest rates have we now had in the two years since Trump was elected?  8?  10?
Link Posted: 12/19/2018 5:17:01 PM EDT
[#45]
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Really?  S&P PE ratio today would support an interest rate of 5.2 percent.  
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Quoted:
Quoted:
Everyone bitching about the rate hike is no different than any other welfare recipient.

The Fed and .gov manipulated the shit out of the markets to save your stupid asses..... FOR OVER A FUCKING DECADE....., and now when they are trying to reel in some of that government cheese, you're up in arms about "Muh investments!".

How fucking stupid do you have to be to think any of this market is real?

P/E ratios are fucked. Corporate debt is fucked. Pensions fucked. Hedge funds closing left and right. .........

Market has been on life support for 10 goddamn years, GDP a function of increasing debt for the last 40 years.. and if this comes as a suprise to any of you..... God help ya.
Really?  S&P PE ratio today would support an interest rate of 5.2 percent.  
Could you explain/extrapolate on that?
Link Posted: 12/19/2018 5:19:55 PM EDT
[#46]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Be ready for the recession because its coming. Every time the economy is rolling along the Fed pops it.

They popped the dot com and they popped the housing bubble.

Sock your money away because its coming.
View Quote
So it was Greenspan's fault Pets.com disappeared?  I thought it was because their most valuable asset was a sock puppet, which justified millions upon millions of investment dollars despite a lack of profit.
Link Posted: 12/19/2018 5:21:42 PM EDT
[#47]
Congratulations to Chairman Powell on another successful suicide mission to destroy the economy.

The guy is an idiot. 2 more dot plots for 2019. Why can't he just say, "We have no idea and we just have to look at numbers as they come in?". That would make more sense than forecasting the future. He's not a weatherman. Where is his magic 8 ball?
Link Posted: 12/19/2018 5:24:25 PM EDT
[#48]
I guess we now know who runs bartertown.

Should I go out and buy a yellow vest?
The mind wanders...
Link Posted: 12/19/2018 5:25:13 PM EDT
[#49]
Of course when I'm looking to buy a new place. Assholes
Link Posted: 12/19/2018 5:26:30 PM EDT
[#50]




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