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We’ve been in a low rate environment for almost a decade. Rates need to rise but it needs to happen more slowly. Just because the fed has been warning everyone
by RyanShook 8y ago
We’ve been in a low rate environment for almost a decade. Rates need to rise but it needs to happen more slowly. Just because the fed has been warning everyone it’s coming doesn’t mean the market is ready for it.
- sanxiyn 8y agoBut that's market's fault, isn't it? The Fed is responsible for entire economy, not just stock market.
- dlor 8y agoExactly! Waiting would just be the Fed preferring slower movers to faster ones.
- dlor 8y agoWhat does that even mean though? The market is supposed to represent something close to the "correct" state of things, based on public knowledge. Given the warnings, how long should it take to "get ready"? And should the Fed "wait for it to be ready"?
- thoughtexplorer 8y ago> Rates need to rise but it needs to happen more slowly. How do you know? Serious question: Would anyone realistically have a better idea than the fed about that?
- dlor 8y agoI tend to agree here. Any tolerance for "slowness" is anti-free-market. I don't necessarily think completely free markets are optimal, but I can't see a reasonable argument for slower being better than faster in general.
- fiter 8y agoDoes the Fed have some privileged information that everyone else does not?
- anonymous5133 8y agoThe problem is the fed is trying to prevent a speculative bubble from forming in the stock market. 20-30% per year YOY in the stock market is not the norm.