Tariffs Caused the Market Sell off

USFREEDOM911 said:
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Poor Nordberg.

Presenting him with FACTS, has made him groan in the realization of things he wanted to ignore. :D
 
Superfreak said:
Powell is doing the right thing. Thus far his only mistake, imo, is that he is breaking down under pressure from Wall St and Trump.

A lot of this market panic is being driven by the big banks who are seeing their margins squeezed on loans.
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I don't disagree that interest rates had to go up. My issue with Powell is that he is going too fast. We should have been increasing a half a point a year since 2014 up to about 3%

This is too much of a jolt to the system. It is like a heroin addict going cold turkey. Markets and business have gotten too use to the liquidity
 
Trump get's economy rolling on overdrive, and the Fed's tamper it down.
necessary, maybe

but it is what it is, making interest rates higher mean people borrow less. businesses borrow less, spend less, hire less true story , feds call it a correction, we'll see
 
I Love America said:
I don't disagree that interest rates had to go up. My issue with Powell is that he is going too fast. We should have been increasing a half a point a year since 2014 up to about 3%

This is too much of a jolt to the system. It is like a heroin addict going cold turkey. Markets and business have gotten too use to the liquidity
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We should have, but we didn't. He is doing the right thing. The market may not like it, but it is still the right way to go. he is going at a moderate pace. We should have been at 4% by now. That is the stupidity of Yellen and Obama. We have gone up about 25bps per quarter over the last two years. That is hardly a breathtaking pace.
 
The biggest problem we have is the EU is not raising rates. That is keeping our long bonds too attractive (despite their insanely overvalued prices) relative to the longer British and German bonds. That is a large reason why the yield curve is flattening, despite strong GDP growth.
 
Superfreak said:
We should have, but we didn't. He is doing the right thing. The market may not like it, but it is still the right way to go. he is going at a moderate pace. We should have been at 4% by now. That is the stupidity of Yellen and Obama. We have gone up about 25bps per quarter over the last two years. That is hardly a breathtaking pace.
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I am not going to argue "pace", but I am going to argue this last hike at least was done in the face of a global slowdown
and a stock market in free fall - there is no way to defend this last hike ( and I think the pace IS too quick)
 
Superfreak said:
The biggest problem we have is the EU is not raising rates. That is keeping our long bonds too attractive (despite their insanely overvalued prices) relative to the longer British and German bonds. That is a large reason why the yield curve is flattening, despite strong GDP growth.
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That I 100% agree with. Us raising rates while the world is still at 0% is a problem

Conversely, Powell is hurting China, which I doubt is his goal but it may spur them to cave on trade sooner
 
Superfreak said:
We should have, but we didn't. He is doing the right thing. The market may not like it, but it is still the right way to go. he is going at a moderate pace. We should have been at 4% by now. That is the stupidity of Yellen and Obama. We have gone up about 25bps per quarter over the last two years. That is hardly a breathtaking pace.
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Obama was in charge of an economy lending at 0% interest rates,
which a child could have done

But to liberals he was the greatest of all times :rofl2:
 
noise said:
I am not going to argue "pace", but I am going to argue this last hike at least was done in the face of a global slowdown
and a stock market in free fall - there is no way to defend this last hike ( and I think the pace IS too quick)
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Global slowdown? Who is slowing down?

The pace of worldwide growth might be slowing, but it is still positive growth.

Next, the Fed is not supposed to care what the stock markets are doing. While they can be somewhat representative of the economy, the vast majority of companies are not publicly traded. The stock market can also be manipulated. Our stock market performance the last two months makes little sense from an economic perspective. We have strong GDP growth and more importantly very low unemployment rate. That is a problem they have to get ahead of... regardless of whether or not the stock market throws a fit.

You can absolutely defend this hike. Powell is telling Wall St to fuck off. As he should. Too many times Yellen and Bernanke before her bowed down the Wall St games. That is why we got stuck with so much QE and low interest rates for almost a decade.
 
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