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Fed cuts rates on 7-3 vote, gives mixed signals on next move
- tonyedgecombe 7y agoI wonder if these efforts to stave off a recession result in a worse outcome when it does eventually arrive.
- kitten_smuggler 7y agoThey are using what few tools they have left to re-flate before the recession so yea, it wouldn't surprise me.
- derision 7y agoWhat recession?
- Bombthecat 7y agoYeah, I also think there will be any recession anytime soon. Maybe in five to six years...
- thorwasdfasdf 7y agoAlot of indicators like freight shipping and numerous other signals are starting to rollover, indicating that we're in for a cyclical recession. Furthermore, we've been in the longest bull market (well 2nd longest) ever seen. Experts say it should occur before June 2020 (if they had to put a date on it).
- twiceaday 7y agoWell, yeah. The reason to raise rates is in part so that you can lower them to boost the market and avoid a recession. It is a tool, and whenever rates are low the tool is less effective.
- yasp 7y agoFear not, friend, for the IMF has a plan to drag us kicking and screaming below the zero-bound, whether the empirical evidence supports the prescription or not. https://www.imf.org/en/Publications/WP/Issues/2019/04/29/Enabling-Deep-Negative-Rates-A-Guide-46598 https://www.imf.org/en/Publications/WP/Issues/2019/04/29/Ena...
- graedus 7y agoYes, that's worth a read. Lots of thinking about how to deal with people moving to cash and how to deal with that or prevent it. The section on "Using Communication Tools to Overcome Political Challenges" is interesting as well. There have been a lot of papers on this topic over the past few years, many of which are listed in the references of this paper.
- marcosdumay 7y agoIf those recessions are indeed caused by too much credit disappearing because of too few opportunities to spend it, like mainstream economics says, then I imagine adding more credit will make the problem worse (even though I've never seen a this second part formalized).
- jigglesniggle 7y agoI've lived my whole life under a recession, where is my bailout money?
- aeternum 7y ago"If you owe the bank a hundred dollars, it's your problem, but if you owe the bank a billion dollars, it's the bank's problem"
- jigglesniggle 7y agoTrue, I suppose. My comment was supposed to be commentary on the article in the vein of the original opposition to a fiat currency. On one hand I recognize that the conspiracy to manipulate the money supply is supposed to be in the best interest of all participants in the economy, but is does not seem to achieve this in practice.