3 ms·

> The difference between then and now is that interest rates are blasting through the roof along with inflation. The effective federal interest rate is 0.33% t

• dgfitz 4y ago
  > The effective federal interest rate is 0.33% today. It was 2.4% before COVID... I believe it is actually over double that and sits around 0.84 https://www.newyorkfed.org/markets/reference-rates/effr https://www.newyorkfed.org/markets/reference-rates/effr
• lumost 4y ago
  The absolute number doesn’t matter so much as the change. If valuations rose because interest rates fell, then rising interest rates will do the opposite
• missedthecue 4y ago
  Look at the average mortgage rate...
• ffggvv 4y ago
  The current fed funds rate is 1% (0.75-1.0) the next 2 meetings they plan to raise it by 0.5 each meeting. and then 0.25 each meeting after that until inflation is gone. in 2019 they started lowering it because they crashed the market by raising it to 2.5. which proves the point trajectory matters alot.
  • lumost 4y ago
    Unless we believe in magic monetary fairy dust, it’s reasonable to assume that the fed cannot wish economic growth into existence. Without real growth, we cannot have wage increases and asset price increases - one must take from the other. So far the fed has chosen asset appreciation over wage increases, we’ll see how things play out this cycle.