Interest Rates and the 'Neutral Rate'

[Flopsweat]

You did that on purpose! I haven't the foggiest idea what you're talking about and there is no way to Google it. Is it because ice cream doesn't have any bones?

It's best to let sleeping dogs butter their bread.

 

[Certaindeaf]

You did that on purpose! I haven't the foggiest idea what you're talking about and there is no way to Google it. Is it because ice cream doesn't have any bones?

Exactly my thoughts on reading that there was more than one way to know what a 2 month cd yield would be now since it's a rolling 2 months and no one has a crystal ball. ie it is absurd hence my absurd response.

 

[solv3nt]

Clinton had a surplus because of the Dot Com stock market boom.

Still was a surplus.

 

[Flopsweat]

Still was a surplus.

I did not have sex with that economy.

 

[Mono1]

It's wise to live one greatly below your income.

THIS ^^^^

 

[gmerkt]

At issue is the neutral rate of interest: the rate that keeps the demand and supply of savings in equilibrium, leading to stable economic growth and inflation.

For the last 40 years, and especially following the 2008 financial crisis, economists and Fed policymakers steadily revised down their estimates of neutral. This view became embedded in bond yields, mortgage rates, equity prices and countless other assets.

But now, some see reasons for neutral rising, with the potential to change a wide range of asset prices

In a natural economy, the price of renting money is never zero. Government and Federal Reserve actions re. interest rates since 2008 have resulted in artificial markets. At some point, natural market forces will dictate true interest rates again. We may be seeing a start of that now. Which is poison to the US Government, with so many interest-rate dependent obligations.

Hate to say it, but Clinton had a surplus.

Regardless of the reasons, lately I've been pining for the comfort of the economy under Clinton. It looks pretty good in the rearview mirror.

Paying 12% on your deposits while earning 8% on your loans was not a recipe for success.

"We lose money on every transaction, but make up for it in volume" kind of thing.

 

[Mono1]

Basically just prepare for the internet to be down for an extended period of time. It's not much of a stretch anymore.

This is a really good point. People that I greatly respect in the Financial world do not like BitCoin and Digital Currencies for the very reason that they effectively do not exist when the Grid goes down.

 

[Flopsweat]

This is a really good point. People that I greatly respect in the Financial world do not like BitCoin and Digital Currencies for the very reason that they effectively do not exist when the Grid goes down.

Buy land.

 

[Bobbygun]

Buy land.

I think the quote you're looking for here is: "One if by land, two if by sea."

You're welcome.

 

[Flopsweat]

I think the quote you're looking for here is: "One if by land, two if by sea."

You're welcome.

 

[solv3nt]

View attachment 1872654

All I see is moobs.

 

[Flopsweat]

All I see is moobs.

Sounds like a personal problem.

 

[Mono1]

Sounds like a personal problem.

Solvy lives life through a different Lens.

 

[arakboss]

Buy land.

It worked in China.

Housing glut leaves China with excess homes for 150m people

Market hit by a double whammy of weak sales and population drop

asia.nikkei.com

 

[solv3nt]

Solvy lives life through a different Lens.

Boobs of that caliber typically a have little more pep to their step, whereas moobs have none; next.... You obviously aren't a bewb connoisseur....

 

[arakboss]

Just heard on CNBC that nearly 2/3rds of consumer spending in the US is being done by the top 40% of earners. The bottom 20% only account for 9% of consumer spending.

 

[CamoDeafie]

It worked in China.

Housing glut leaves China with excess homes for 150m people

Market hit by a double whammy of weak sales and population drop

asia.nikkei.com

Well. Didn't the US export so much quality lumber over to China, along with Canada (now there's an irony, Canada has more trees?) And Mexico who recently became #1 customer for soft wood lumber exports....?

So is it bad that I'm hoping for building materials prices to go way down?

 

[Lilhigbee]

It worked in China.

Housing glut leaves China with excess homes for 150m people

Market hit by a double whammy of weak sales and population drop

asia.nikkei.com

I see a win/win solution. They have empty homes and we have homeless people. too difficult to send the homes here so we can send the homeless people there!! Two problems solved!!

 

[Certaindeaf]

I see a win/win solution. They have empty homes and we have homeless people. too difficult to send the homes here so we can send the homeless people there!! Two problems solved!!

And send the neo-nazi university protestors to palestine.. wherever that is.

 

[wired]

Just heard on CNBC that nearly 2/3rds of consumer spending in the US is being done by the top 40% of earners. The bottom 20% only account for 9% of consumer spending.

They dont have any money. Duh