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Q for the resident economists

24

Comments

  • 2001400ex
    2001400ex Member Posts: 29,457
    edited November 2018

    2001400ex said:

    Rising interest rates and a trade war. Hopefully, now you’re informed.

    Weren't rising interest rates known when we were sold that this was going to prop up the economy and stock market?

    Trade war.... So what should we do about the trade war? Who is the person behind that again?
    I haven’t heard any solution from you on how to defend our? intellectual property. A short term trade war is a good trade off for long term intellectual property protection.

    Regarding interest rates...when was the last time we had a rise in interest rates? About a decade? Now think about how much debt businesses accrued during that time. With rising interest rates this debt creates valuation issues in the market. Obviously, you aren’t very smart, or you would know that. The market also priced in for three rate increases this year, not four. With the fear of a forth increase coming in December, it’s driving stocks down.

    There is also the fear of a global slow down. At times like this it’s best to compare similar countries. Just so you know, Europe’s growth projection is a full percentage point lower than the US for the next couple quarters. When compared to Europe, the US is very strong. The strengthening dollar is another example of our economic strengthening compared to the rest of the developed world markets.
    Go read my other comments on rising interest rates. I'm very aware of their effect. The main reason they have risen slowly is the 08 recession freaked the fed out. Their quick rising of rates in 06/07 was one of the main triggers of the recession.

    This is some historical context on the fed funds rate.

    photo 9613E0C9-7881-47CC-BCED-93717D1918FB_zpszzvl8i7a.png
  • SFGbob
    SFGbob Member Posts: 33,215

    2001400ex said:

    We had the yugest tax cut ever and the most reduction in regulations ever. Why is the stock market at a net zero for 2018 then?

    the stock market is not the economy.

    hth
    Careful, Hondo will accuse you of "stroking off" Trump.
  • 2001400ex
    2001400ex Member Posts: 29,457

    2001400ex said:

    We had the yugest tax cut ever and the most reduction in regulations ever. Why is the stock market at a net zero for 2018 then?

    the stock market is not the economy.

    hth
    No shit. I'm laughing cause of Trump's comments on the matter. And this is the dudes that stroke his dick:

    Under Obama: stock market doesn't matter.. See labor participation.

    Under Trump: see stock market!!!! Up bigly!!! What is labor participation?

    Now: stock market doesn't matter.
  • greenblood
    greenblood Member Posts: 14,573
    edited November 2018
    2001400ex said:

    2001400ex said:

    Rising interest rates and a trade war. Hopefully, now you’re informed.

    Weren't rising interest rates known when we were sold that this was going to prop up the economy and stock market?

    Trade war.... So what should we do about the trade war? Who is the person behind that again?
    I haven’t heard any solution from you on how to defend our? intellectual property. A short term trade war is a good trade off for long term intellectual property protection.

    Regarding interest rates...when was the last time we had a rise in interest rates? About a decade? Now think about how much debt businesses accrued during that time. With rising interest rates this debt creates valuation issues in the market. Obviously, you aren’t very smart, or you would know that. The market also priced in for three rate increases this year, not four. With the fear of a forth increase coming in December, it’s driving stocks down.

    There is also the fear of a global slow down. At times like this it’s best to compare similar countries. Just so you know, Europe’s growth projection is a full percentage point lower than the US for the next couple quarters. When compared to Europe, the US is very strong. The strengthening dollar is another example of our economic strengthening compared to the rest of the developed world markets.
    Go read my other comments on rising interest rates. I'm very aware of their effect. The main reason they have risen slowly is the 08 recession freaked the fed out. Their quick rising of rates in 06/07 was one of the main triggers of the recession.

    This is some historical context on the fed funds rate.

    photo 9613E0C9-7881-47CC-BCED-93717D1918FB_zpszzvl8i7a.png
    But they created a market where zero interest rates were the norm. They should have gradually increased interest rates 3-4 years ago. If they would have taken one to two .25% increases in 13’, 14’, 15’, and 16’, the market would have been much better off.
  • SFGbob
    SFGbob Member Posts: 33,215
    edited November 2018
    2001400ex said:

    2001400ex said:

    We had the yugest tax cut ever and the most reduction in regulations ever. Why is the stock market at a net zero for 2018 then?

    the stock market is not the economy.

    hth
    No shit. I'm laughing cause of Trump's comments on the matter. And this is the dudes that stroke his dick:

    Under Obama: stock market doesn't matter.. See labor participation.

    Under Trump: see stock market!!!! Up bigly!!! What is labor participation?

    Now: stock market doesn't matter.
    Oh so you're just going to make shit up and attribute it to me. I never said the stock market doesn't matter and I never claimed the stock market didn't matter under Obama my strawman ass fucking lying Kunt of a friend.

    I must have said all of those things in that thread where you said you favor illegal immigration because it gives you greater access to 10 year old Mexican boys that you can have sex with.
  • RaceBannon
    RaceBannon Member, Moderator, Swaye's Wigwam Posts: 116,039 Founders Club
    2001400ex said:

    2001400ex said:

    We had the yugest tax cut ever and the most reduction in regulations ever. Why is the stock market at a net zero for 2018 then?

    the stock market is not the economy.

    hth
    No shit. I'm laughing cause of Trump's comments on the matter. And this is the dudes that stroke his dick:

    Under Obama: stock market doesn't matter.. See labor participation.

    Under Trump: see stock market!!!! Up bigly!!! What is labor participation?

    Now: stock market doesn't matter.
    Just because you lie like a rug doesn't make it so

    The shift is pronounced. In an interview with The Economist released over the weekend, Obama made a full-throated argument for his economic legacy that came without the hedges and caveats he has used in past years. "Let's look at the facts," Obama said. "Since I have come into office, there's almost no economic metric by which you couldn't say that the U.S. economy is better and that corporate bottom lines are better. None."

    He went on to cite the administration's successes: "a record stock market," "record corporate profits," 52 straight months of consecutive job growth" and "an energy sector that's booming."
  • greenblood
    greenblood Member Posts: 14,573

    2001400ex said:

    2001400ex said:

    We had the yugest tax cut ever and the most reduction in regulations ever. Why is the stock market at a net zero for 2018 then?

    the stock market is not the economy.

    hth
    No shit. I'm laughing cause of Trump's comments on the matter. And this is the dudes that stroke his dick:

    Under Obama: stock market doesn't matter.. See labor participation.

    Under Trump: see stock market!!!! Up bigly!!! What is labor participation?

    Now: stock market doesn't matter.
    Just because you lie like a rug doesn't make it so

    The shift is pronounced. In an interview with The Economist released over the weekend, Obama made a full-throated argument for his economic legacy that came without the hedges and caveats he has used in past years. "Let's look at the facts," Obama said. "Since I have come into office, there's almost no economic metric by which you couldn't say that the U.S. economy is better and that corporate bottom lines are better. None."

    He went on to cite the administration's successes: "a record stock market," "record corporate profits," 52 straight months of consecutive job growth" and "an energy sector that's booming."
    But Hondo didn’t give him prior approval of those comments, so it doesn’t count.
  • 2001400ex
    2001400ex Member Posts: 29,457

    2001400ex said:

    2001400ex said:

    Rising interest rates and a trade war. Hopefully, now you’re informed.

    Weren't rising interest rates known when we were sold that this was going to prop up the economy and stock market?

    Trade war.... So what should we do about the trade war? Who is the person behind that again?
    I haven’t heard any solution from you on how to defend our? intellectual property. A short term trade war is a good trade off for long term intellectual property protection.

    Regarding interest rates...when was the last time we had a rise in interest rates? About a decade? Now think about how much debt businesses accrued during that time. With rising interest rates this debt creates valuation issues in the market. Obviously, you aren’t very smart, or you would know that. The market also priced in for three rate increases this year, not four. With the fear of a forth increase coming in December, it’s driving stocks down.

    There is also the fear of a global slow down. At times like this it’s best to compare similar countries. Just so you know, Europe’s growth projection is a full percentage point lower than the US for the next couple quarters. When compared to Europe, the US is very strong. The strengthening dollar is another example of our economic strengthening compared to the rest of the developed world markets.
    Go read my other comments on rising interest rates. I'm very aware of their effect. The main reason they have risen slowly is the 08 recession freaked the fed out. Their quick rising of rates in 06/07 was one of the main triggers of the recession.

    This is some historical context on the fed funds rate.

    photo 9613E0C9-7881-47CC-BCED-93717D1918FB_zpszzvl8i7a.png
    But they created a market where zero interest rates were the norm. They should have gradually increased interest rates 3-4 years ago. If they would have taken one to two .25% increases in 13’, 14’, 15’, and 16’, the market would have been much better off.
    Agreed. They definitely should have raised rates earlier. And slowly.