101–110 of 319 posts
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What do you think is the difference between saving and investing??
Saving is preservation of capital whereas investing is growing capital. At least that is my take.
The Fed can, and will do much, much more. The signal here should be read as "whatever it takes to avoid a depression." Among other steps, this is likely to mean: - Negative-yielding long-term treasuries - Direct purchase of stocks or ETFs, which would require congressional approval. Expect the discussions to start soon. The steps already taken and the ones to be taken will create financial manipulation on a scale nev…
Should it?
> If the Fed loses this fight, game over.
It might be game over for the Fed, but not the country. For most of america's history, the Fed didn't exist and the US did very well without the Fed.
It's the same silly fearmongering rhetoric by the abusive powerful to the masses. Without us, it'll be chaos. The same argument was made to justify the existence of monarchies. Without monarchies, it would be anarchy. The same to justify the existence of the pope and catholicism. Without catholicism, it would be depravity. Abusive spouses say that their to abused spouses, without me you are nothing.
Just maybe, the cause of our financial woes are the Fed itself? Maybe if we got rid of kings, religion, abusive spouses or the Fed we might be better off.
After all, the Fed is just a private institution ( an international banking cartel ) used to parasitically leech off the american people.
More aptly, the Fed is like an anarchist who sets your house on fire and then comes to your house to "help" you put out the fire.
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We used to think that rates couldn't go negative for exactly the reason you just described. Turns out that assumption was wrong for a few reasons a) holding onto money is expensive b) in many cases banks have incentive to hold government securities c) sometimes they are outright required to hold government securities d) this is related to (a), but there is risk in holding onto cash where government debt is in many ca…
So people are willing to accept small negative rates if it would be less than the operational costs of shipping enormous truckloads of bills around, storing them, securing them, and insuring them against theft / fire? Is that's what's going on here?
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What are we doing to flatten the curve? I keep seeing the us getting compared to Italy.
Closing down schools, banning large gatherings, setting up drive thru testing, ramping up test kits next week, letting employees to work from home, closing borders to China and Europe (25k cases), etc
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Are you optimistic about the wealth transfer implications of their activity?
Look, I don't want to be alarmist, but the worst outcome here is not '08. It's the 1930s. This has caused material demand and supply side shocks that we haven't seen in my lifetime or my parents' lifetime. I'm likely on the younger side of the hacker news demographic and I still believe that this is the right action to take at this moment. We might be stuck paying it off for awhile, but I would rather deal with an in…
Why is this warranted yet? This is a terrible that will only signal that the fed is panicking and nothing else. There are no indications that the supply chain is disrupted or that the economy is sputtering. It will happen at some point in the next few weeks with or without the infusion and rate cuts now. These things are much better done when warranted rather than now. As of now it’s only a humanitarian crisis and on…
My "high interest" savings accounts already took a recent haircut and this will accelerate that. I understand that's the idea: make investing attractive and savings unattractive. But for a regular joe like me, this is exactly the time I want to be saving more so it stings.
The Fed can, and will do much, much more. The signal here should be read as "whatever it takes to avoid a depression." Among other steps, this is likely to mean: - Negative-yielding long-term treasuries - Direct purchase of stocks or ETFs, which would require congressional approval. Expect the discussions to start soon. The steps already taken and the ones to be taken will create financial manipulation on a scale nev…
> whatever it takes to avoid a depression Does the Federal Reserve Bank do vaccines, now? This isn't a financial crisis. Money won't fix it. People aren't transacting in big chunks of the economy because they're immobilized by a plague. Now... certainly once the virus is under control, economic recovery is going to depend on finance and liquidity, so it's not like the Fed has no role to play. But... it's not the Fed'…
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Most republican administrations have displayed that "get mine and get out" behavior--causing recessions--since Teddy Roosevelt.
Obama's admin let one of the world's foremost financial institutions fail and caused a mass market panic / giant economic setback. Their reasoning was entirely political and caused millions of people to lose their jobs. I'm independent, but claiming that Republicans cause recessions is pretty ironic considering the economic damage the last Democratic admin did.
Earlier quoted context omitted.
Most republican administrations have displayed that "get mine and get out" behavior--causing recessions--since Teddy Roosevelt.
Obama's admin let one of the world's foremost financial institutions fail and caused a mass market panic / giant economic setback. Their reasoning was entirely political and caused millions of people to lose their jobs. I'm independent, but claiming that Republicans cause recessions is pretty ironic considering the economic damage the last Democratic admin did.
So, how does that change your view?