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I am not sure what you're talking about. What is the level of 70 for USD? Also, through what mechanism do you think rate will rise (real or nominal)? It'll ha

by amykyta 12y ago

I am not sure what you're talking about. What is the level of 70 for USD? Also, through what mechanism do you think rate will rise (real or nominal)? It'll have to be with a nudge from the FOMC which implements the monetary policy by buying/selling treasuries from/to the banks. As rates rise, some of those reserves banks have now will get absorbed by the FOMC. Additionally, just because banks have money to lend doesn't mean they're going to throw caution and credit concerns to the wind and start lending again.

Lost_BiomedE 12y ago
- What is the level of 70 for USD? US Dollar index: http://www.fxstreet.com/rates-charts/usdollar-index/ http://www.fxstreet.com/rates-charts/usdollar-index/ - Also, through what mechanism do you think rate will rise (real or nominal)? It'll have to be with a nudge from the FOMC which implements the monetary policy by buying/selling treasuries from/to the banks. Yes, the Fed will ultimately raise rates, just as Bullard has signaled: "...he repeated his own expectation that rates will likely need to rise by the end of the first quarter of next year, as inflation recovers to its desired target. That is several months ahead of the summer rate rise many investors now expect." http://www.reuters.com/article/2014/05/16/us-usa-fed-bullard-idUSBREA4F0I520140516 http://www.reuters.com/article/2014/05/16/us-usa-fed-bullard... - Additionally, just because banks have money to lend doesn't mean they're going to throw caution and credit concerns to the wind and start lending again. Watch them throw caution and credit concerns to the wind. You will have plenty of time to see that they are doing this before taking an action. I do not have any doubts based on how they have behaved in the past, are behaving now, and how they are encouraged to do so.
- fauigerzigerk 12y ago
  >Watch them throw caution and credit concerns to the wind Banks are under very close scrutiny right now and will be for many years to come. I doubt very much that the next bubble will get inflated exactly where the last one popped.
  - Lost_BiomedE 12y ago
    One of the big reasons we have funneled money to the banks was to get them to lend. When they start, it will be welcomed with open arms.
    - fauigerzigerk 12y ago
      It would be welcomed if they lend to businesses that invest. But if consumer debt starts rising significantly you can be quite sure that it won't be long until regulators intervene. The question is how you get businesses to invest when there is no one who can buy more stuff. This is going to be a slow economy for a very long time.

by amykyta 12y ago

Lost_BiomedE 12y ago

- What is the level of 70 for USD? US Dollar index: http://www.fxstreet.com/rates-charts/usdollar-index/ http://www.fxstreet.com/rates-charts/usdollar-index/ - Also, through what mechanism do you think rate will rise (real or nominal)? It'll have to be with a nudge from the FOMC which implements the monetary policy by buying/selling treasuries from/to the banks. Yes, the Fed will ultimately raise rates, just as Bullard has signaled: "...he repeated his own expectation that rates will likely need to rise by the end of the first quarter of next year, as inflation recovers to its desired target. That is several months ahead of the summer rate rise many investors now expect." http://www.reuters.com/article/2014/05/16/us-usa-fed-bullard-idUSBREA4F0I520140516 http://www.reuters.com/article/2014/05/16/us-usa-fed-bullard... - Additionally, just because banks have money to lend doesn't mean they're going to throw caution and credit concerns to the wind and start lending again. Watch them throw caution and credit concerns to the wind. You will have plenty of time to see that they are doing this before taking an action. I do not have any doubts based on how they have behaved in the past, are behaving now, and how they are encouraged to do so.

fauigerzigerk 12y ago
>Watch them throw caution and credit concerns to the wind Banks are under very close scrutiny right now and will be for many years to come. I doubt very much that the next bubble will get inflated exactly where the last one popped.
- Lost_BiomedE 12y ago
  One of the big reasons we have funneled money to the banks was to get them to lend. When they start, it will be welcomed with open arms.
  - fauigerzigerk 12y ago
    It would be welcomed if they lend to businesses that invest. But if consumer debt starts rising significantly you can be quite sure that it won't be long until regulators intervene. The question is how you get businesses to invest when there is no one who can buy more stuff. This is going to be a slow economy for a very long time.