Well I didn’t expect this and to be honest its a little confounding to say in the least. The FEDs have removed too much liquidity from the market too soon too fast as they are in the process of clearing their books from their quantitative easing policies and thus the mysterious spike in rates occurs. This is troubling on many fronts because the the decision making at the FED’s comes into question regarding the overall outlook on the economy and this doesn’t look very promising in terms of their decisions in the future. A rate cut would seem to be the only logical pivot to which the FED can cover their shorts and prevent Wall Street banks from their excessive pump and dumps on securities so they can capitalize on the rates. The latter is something that needs to be addressed and looked at soon, as many are working against America first policies and are only looking to create another situation where capitalization on short term runs is another moment to hedge bets for and against. This is the danger and the real problem and it needs to be looked at. Reign in the Wall street greed or else the economy will soon have a melt down, and this time it will be a lot worse than 2008!
Interesting. 75bn is a very small amount in relation to GDP much less the currency in circulation.
The Rate cut made perfect sense since there’s no real inflation but why the 75bn?
Trumps remarks on Powell and The Fed are interesting!
I know I have yet to say anything positive or even neutral on the Fed in the last year or so.
The sad part about it is that he is right! Powell’s decisions so far is baffling to say in the least! It’s hard to compete with other countries when they are slashing rates all the time. Also the corporate tax is another issue.
No argument from me. He’s probably cost us about 1.5% annual growth if not m ore so far.
Is anyone under the impression that the Fed isn’t part of the swamp that Trump has promised to drain? Why would it be confusing that they’re trying to screw with the economy to defeat him in 2020?
At this point under the influence of Keystone Keynesianism (bad times demand more spending, good times are an excuse / opportunity to spend more) the government isn’t engaging in counter cyclic pump priming so much as it’s engaging in economic masturbation.
Actually the bankers and government need inflation. This is on account of how inflation can be a lagging consequence that sets in after individual acts to inflate the ones supply. This lets top bankers live more richly off of the churn as they rob savers and by constantly devaluing the money makes it easier to sustain deficit spending.
I’m so glad the government is bailing out the banks again. The best economy ever needed to have $75B taken from the tax payers and handed to these banks. I can’t believe the levels of winning that we are experiencing under Donald Trump’s leadership! it’s not like the American people need to be supplied with additional liquidity or anything - we need to only give additional liquidity to the banks! MIGA!
Not a bail out (bad enough to begin with) but a straight on cash grab, Fed Reserve style.
I consider myself a pretty strong Trump supporter, and I know the Fed is independent, but I am have having a real hard time squaring this decision making. If any company isn’t performing then they deserve to fail. If people decide to invest in a failing company or sector then they made bad investment decisions. It’s a simple as that.
Remember: companies that are failing cannot create more money by borrowing it into existence. Bankers over big enough banks are extra special people who don’t have to play by the rules applied to others.
HOLY SHIT! THE FED IS GOING TO PUMP IN $75B A DAY UNTIL OCTOBER 10th
Student load debt forgiveness is too hard though. Let’s give $75B a day to these ■■■■■■ banks instead.
Shouldn’t do either.
I would personally rather see money being used to benefit the American people than to benefit the banks.
No delegated power for either. Neither should be done.
But if you want you could give your own money to someone struggling with student loans.
And yet the fed still exists and is doing this. So what’s the solution other than saying it shouldn’t happen? I’m really not one for ignoring reality.
I do that every month.
My point is a lot of people don’t pay their student loans and go into default. There is a 1.7 trillion dollar bubble waiting to burst on this. We can either continue ignoring the problem because we don’t like it or we can come up with a solution. Either way, the problem isn’t going away.