We’ve spoken about the Fed for years on this board and what their policies have done to the market. I can’t help you if you aren’t able to understand it. I mean you didn’t even understand what an equity bubble is. Like I said, it’s pretty hard to have a discussion with someone with such a limited understanding.
Pro tip, instead of being a one trick pony and screaming tax cut over and over because you don’t understand anything else, go read up on the Fed and how institutional investors have reacted to Powell’s various announcements.
No. What happens is that you say something vague and ambiguous, backed up by incomplete information designed specifically to coddle an inherent bias rather than lead you to new thinking. When you're not blaming the Fed, you're blaming Obama, or "socialism", or whatever you think depending on which day of the week it is. But what you don't blame, that you should, are the fiscal and economic policies of Conservatism that has, for the last 40 years, generated boom and bust cycles independent of Fed action. Your central belief system, that you have seemingly jettisoned because the empirical evidence doesn't deliver on the promise made of it, was that a deregulatory, low-tax enviornment would unleash economic activity that would make up for the drop in revenue from the tax cuts, with new revenues that come from increased economic activity vis-a-vis your tax policy. But we now have data from the last year showing that the opposite is actually the case.
So you make excuses for the failure of your policy when you should really just admit your policy is the failure.
Conservative economics only seem to work in theory, in a vacuum, where every variable is controlled. Then you blame other things for when that policy never works.
When I die, turn me into a brick and use me to cave in the skull of a fascist
The Treasury Secretary that you support said in December 2017 that the Russia Tax Cut would grow the market.
In fact he said specifically that if the Russia Tax Cut wasn't passed, the market would "tumble":
Nothing about the Fed there.“To the extent we get the tax deal done, the stock market will go up higher. But there’s no question in my mind that if we don’t get it done you’re going to see a reversal of a significant amount of these gains.”
So you jump to an excuse, The Fed, without answering for the fact that the Fed had nothing to do with your tax cut juicing the market for two quarters, then crashing down hard because the fundamentals of your economic theory simply aren't there.
When I die, turn me into a brick and use me to cave in the skull of a fascist
He wants to blame The Fed for the market turmoil of the last year when the Treasury Secretary that he supports said that if the tax cut wasn't passed, the market would tumble and lose all its gains.
Well, the tax cut passed, and the market didn't gain anything for an entire year.
When I die, turn me into a brick and use me to cave in the skull of a fascist
You're the ones who made all these fantastical claims and promises of your tax cut, posturing that your economic knowledge and beliefs would see those promises fulfilled.
Guess what? NONE OF THEM WERE FULFILLED.
So we will continue to talk about the Russia Tax Cut because you controlled all of DC, you made promises of your tax cut, you made cutting taxes central to your economic belief system, and now you refuse to answer for those failed and false promises, posturing about The Fed when The Fed had nothing to do with the market turmoil and zero growth we saw in 2018.
When I die, turn me into a brick and use me to cave in the skull of a fascist
Cypress (02-20-2019)
The Stock Market and the Treasury Bond market competes for dollars.
So naturally, the Stock Market Talking Heads are always on the Federal Reserve's heals every time they have to go up on their rates.
Because a lot of the money invested in the Stock Market are on Borrowed Terms, and when the Fed rates goes up Stock Market investors cry like little babies.
Since Treasury Bond yield rates are reflected by Federal Reserve Interest Rates- in other words, when Fed Interest rates are higher- Treasury Bond yields are higher and become more attractive- when Fed interest rates are lowered- Bond yield rates are also lowered and Treasury Bond sales are not so attractive.
I think people forget how important the Treasury Bond Market is, and they forget that our entire 2O Trillion dollar debt is mostly riding on our Treasury Bond market!
So the Federal Reserve Bank has a very important role in maintaining the right interest rate to keep Treasury Bonds and Bank rates attractive!
Last edited by Adolf_Twitler; 02-20-2019 at 11:48 AM.
"When government fears the people, there is liberty. When the people fear the government, there is tyranny."
A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
Author: Booker T. Washington
"When government fears the people, there is liberty. When the people fear the government, there is tyranny."
A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
Author: Booker T. Washington
"When government fears the people, there is liberty. When the people fear the government, there is tyranny."
A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
Author: Booker T. Washington
"When government fears the people, there is liberty. When the people fear the government, there is tyranny."
A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
Author: Booker T. Washington
"When government fears the people, there is liberty. When the people fear the government, there is tyranny."
A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
Author: Booker T. Washington
"When government fears the people, there is liberty. When the people fear the government, there is tyranny."
A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
Author: Booker T. Washington
"When government fears the people, there is liberty. When the people fear the government, there is tyranny."
A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
Author: Booker T. Washington
"When government fears the people, there is liberty. When the people fear the government, there is tyranny."
A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
Author: Booker T. Washington
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