Author

Topic: FED is not going to raise the rate (Read 821 times)

newbie
Activity: 28
Merit: 0
September 19, 2015, 10:18:09 AM
#7
first they need to learn that in a 1/4 basis point there are an infinite number of infinitely incremental raise... but from 0 to what ever first number there is an exponential gap, some called it the big bang (or the big bucks Wink).

again it just depend on the size of your balance sheet and your revenue stream... ex:

Do you prefer situation 1 or 2 ?

situation 1 : debt 10, income 100, interest raise by 10%
situation 2 : debt 10, income 0,00000001, interest raise by 0,01%

answer: depend if you are the creditor or the debtor !

p.s. I took btc values to make this post less time fragile.
legendary
Activity: 2114
Merit: 1023
Oikos.cash | Decentralized Finance on Tron
September 19, 2015, 09:27:52 AM
#6
If they raise interests rates now in such an unstable world economic climate it will prove disastrous again for millions of peeps worldwide and it is isn't a good idea in my books..We need a couple of generations to improve the economy and it certainly won't happen overnight with all the 'lovely' political parties we got..   Grin
legendary
Activity: 3276
Merit: 2442
September 19, 2015, 03:02:53 AM
#5
FED is going to raise the interest rate in the end, just not now. But it will happen in 2015 - %99.9
hero member
Activity: 675
Merit: 500
September 19, 2015, 01:17:01 AM
#4
About the banks..Here in Canada our Government slashed interest rates and the banks refused to pass the follow cut on to the customers because they know whats best for business. Pretty much giving our Government a big "FU" and pocketing the difference. Banks making more profit each quarter,its disgusting!

The standard argument is that they are stuck with relatively higher cost deposits and it will take time before their cost of funding comes down.
They put such a spin on it - it takes time for policy action to be transmitted through the system
hero member
Activity: 728
Merit: 500
Never ending parties are what Im into.
September 19, 2015, 01:00:58 AM
#3
Construction is one of the best ways to motivate the markets in the upward tick. It supplies jobs all the way up the line and that is why the real estate market is the way it is and why it repeatedly keeps happening. What I do find interesting is they have been talking about interest rates jumping in the States for a well now and nothing comes.

Its like how we have been waiting for Keystone pipeline to happen up here in Canada and Obama keeps pushing it off knowing it was cause issues for Hilary come election time. My guess is they wait till they are in power and she pushes it through quickly or waits for 2nd term,who knows. But they are pushing it off till the timing is right.
I would argue the same thing is happening with the interest rates. They can not increase them before the election as it will wake people up to damn fast to the fact that there is a serious issue in play. Thats my take on it.

About the banks..Here in Canada our Government slashed interest rates and the banks refused to pass the follow cut on to the customers because they know whats best for business. Pretty much giving our Government a big "FU" and pocketing the difference. Banks making more profit each quarter,its disgusting!
hero member
Activity: 675
Merit: 500
September 19, 2015, 12:50:26 AM
#2
http://www.marketwatch.com/story/federal-reserve-opts-to-keep-interest-rates-near-zero-2015-09-17

After financial crisis, FED bought so many houses with printed money to support the house price. Now large banks have both house and money (FED is owned by the large banks), but why they are not spending and not creating any inflation? Because this game is so addictive and they desperately need to print more and buy more lands  Cheesy

A common conception is that banks are richest, but if you count the price of land in large cities and add them up, you will see the total value of lands (if developed into houses) are magnitudes larger than the total money supply of the whole world. This indicated that landlords are still the richest, banks are trying their best to take those lands from landlords by printing money

As usual, the equity markets react positively.
Every time there is talk about the fed raising rates, all the paid economists come out talking about how it will be a big blunder. The reason given this time for not raising rates was global uncertainty.  Roll Eyes
legendary
Activity: 1988
Merit: 1012
Beyond Imagination
September 17, 2015, 10:09:19 PM
#1
http://www.marketwatch.com/story/federal-reserve-opts-to-keep-interest-rates-near-zero-2015-09-17

After financial crisis, FED bought so many houses with printed money to support the house price. Now large banks have both house and money (FED is owned by the large banks), but why they are not spending and not creating any inflation? Because this game is so addictive and they desperately need to print more and buy more lands  Cheesy

A common conception is that banks are richest, but if you count the price of land in large cities and add them up, you will see the total value of lands (if developed into houses) are magnitudes larger than the total money supply of the whole world. This indicated that landlords are still the richest, banks are trying their best to take those lands from landlords by printing money
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