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Fed cuts half point in emergency move amid spreading virus

bloomberg.com

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Re: Fed cuts half point in emergency move amid spreading virus

#71

Post by thedance »

holtalanm wrote: post #58
thedance wrote: post #33

Earlier quoted context omitted.

Don’t worry, literally every single one of the presidential candidates in the democratic primary wants to “build wealth” by making housing ever more expensive. It’s practically state policy to make it impossible for a first-time buyer.

at the risk of getting into a political debate on the internet: I hadn't heard this. Do you have any sources backing up this claim?

Have your seen any of them open their mouths at the debate?

Moderator: solve black poverty Candidate: we’ve got to get them into houses so they can build wealth.

Re: Fed cuts half point in emergency move amid spreading virus

#72

Post by rbinv »

aazaa wrote: post #51

For those saying the Fed is running out of ammunition, study what the Bank of Japan has done. It owns close to 80% of the Japanese ETF market currently, with no end to the expansion of balance sheet in sight. After buying long treasuries, it's not unreasonable to imagine the Fed buying stocks, either individual issues or ETFs. The President would be for it, and it would be hard to drum up any opposition to it in cong…

What would be the endgame here?

Re: Fed cuts half point in emergency move amid spreading virus

#73

Post by ejstronge »

budlightvirus wrote: post #56
mech1234 wrote: post #35

Interest rates have been on a secular decline over the course of the last century. Different economists have described this via various terms- "savings glut" is the one I like the most (even though I don't like Krugman). Right now there is so much saved cash out there looking to be lent out that any project looking for financing can find it for cheap. The Fed does not keep interest rates low in a vacuum. There is an…

What does "secular" mean to you?

'Secular' has multiple definitions; this one refers to a non-cyclical trend:

https://www.lexico.com/en/definition/secular

Re: Fed cuts half point in emergency move amid spreading virus

#74

Post by companyhen »

ptyyy wrote: post #53
gonzo41 wrote: post #30

Earlier quoted context omitted.

You can afford to install a bidet

I just installed a Tushy and let me tell you, it takes some getting used to. Especially when the water is very cold.

Did you get the one with the water heater though?

Re: Fed cuts half point in emergency move amid spreading virus

#75

Post by toomuchtodo »

asaph wrote: post #65
scottmcf wrote: post #39

Earlier quoted context omitted.

We are in/at the start of an actual financial crisis, people just haven't internalized that yet.

I'll bite. How can you tell?

The entire world is about to have a supply chain disruption that you can't stoke into recovery using central bank policy. The Fed rarely lowers interest rates without notice. They're spooked.

Re: Fed cuts half point in emergency move amid spreading virus

#76

Post by thedance »

elicash wrote: post #48
thedance wrote: post #33

Earlier quoted context omitted.

Don’t worry, literally every single one of the presidential candidates in the democratic primary wants to “build wealth” by making housing ever more expensive. It’s practically state policy to make it impossible for a first-time buyer.

The entire point of housing policy at the local level, where it matters, is to make housing more expensive because people's wealth is in their homes and they're relying on housing prices to rise steadily. Renters have less political power.

Local policy is broken but I’m not convinced that it dominates. The Feds have the mortgage interest deduction and Fanny, which both stimulate the demand side very greatly.

Re: Fed cuts half point in emergency move amid spreading virus

#77

Post by [deleted] »

airstrike wrote: post #27

From what I gather after spending more time than I'm willing to admit listening to every finance talking head out there, the consensus on the street seems to be that this will result in a temporary market recovery followed by the continued deterioration of stock prices given that fiscal or monetary* policy can't really affect the real economy in the near term* i.e. if the supply chain is indeed impacted due to COVID-…

[deleted]

Re: Fed cuts half point in emergency move amid spreading virus

#78

Post by vorpalhex »

ptyyy wrote: post #53
gonzo41 wrote: post #30

Earlier quoted context omitted.

You can afford to install a bidet

I just installed a Tushy and let me tell you, it takes some getting used to. Especially when the water is very cold.

Should of gone for the heated BioBidet...

Re: Fed cuts half point in emergency move amid spreading virus

#79

Post by mywittyname »

budlightvirus wrote: post #56
mech1234 wrote: post #35

Interest rates have been on a secular decline over the course of the last century. Different economists have described this via various terms- "savings glut" is the one I like the most (even though I don't like Krugman). Right now there is so much saved cash out there looking to be lent out that any project looking for financing can find it for cheap. The Fed does not keep interest rates low in a vacuum. There is an…

What does "secular" mean to you?

From context, the OP is using it to mean, over a period of time.

Re: Fed cuts half point in emergency move amid spreading virus

#80

Post by asaph »

toomuchtodo wrote: post #75
asaph wrote: post #65

Earlier quoted context omitted.

I'll bite. How can you tell?

The entire world is about to have a supply chain disruption that you can't stoke into recovery using central bank policy. The Fed rarely lowers interest rates without notice. They're spooked.

What if this supply chain disruption is short term, and the world returns to business as usual soon?
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