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Economics Discuss Yellen says she expects Fed to raise rates by year's end at the Political Forums; Originally Posted by Mikeyy You couldn't think of one either I see. No I am not going to play along ...

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Old 09-25-2015, 01:47 PM
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Default Re: Yellen says she expects Fed to raise rates by year's end

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Originally Posted by Mikeyy View Post
You couldn't think of one either I see.
No I am not going to play along with the attempt to derail the thread. If you want to discuss the false accusation that Republics have done nothing for the middle class, start a thread on the subject.

Care to comment on the timing of the Fed's decision not to raise interest rates even though it is long overdue?
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Old 09-25-2015, 01:57 PM
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Default Re: Yellen says she expects Fed to raise rates by year's end

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Originally Posted by Gordon Shumway View Post
while it needs to be done it should have already been done.
There's a thread I started around here talking about how some would take advantage of the Fed rate ...
... and then turn around and use a process like bonds to "loan back" the government's own money for the bank to acquire a profit.
For doing nothing.

LONG overdue.
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Old 09-25-2015, 02:48 PM
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Default Re: Yellen says she expects Fed to raise rates by year's end

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Originally Posted by Mikeyy View Post
The fed is not run by the administration.
okay. one more time...
who is this pre-victim you speak of?
and what does that have to do with the right?
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Old 09-25-2015, 06:35 PM
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Default Re: Yellen says she expects Fed to raise rates by year's end

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Originally Posted by Gordon Shumway View Post
Yellen says she expects Fed to raise rates by year's end

----------------------

so for seven years they artificially prop up the economy with qe1, qe2, qe3 and holding the fed rate at zero. now after slowing and halting qe3 they want to start raising the fed rate. can't help but notice the timing and what the next administration will have to deal with as a result.
while it needs to be done it should have already been done.
the sooner you take your medicine the sooner you'll recover.
but the timing is predictable.


great. i hope its double digits (gradually) so savings accounts are worth something again.
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Old 09-27-2015, 09:18 AM
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Default Re: Yellen says she expects Fed to raise rates by year's end

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Originally Posted by saltwn View Post
great. i hope its double digits (gradually) so savings accounts are worth something again.
Right raise interest rates to double digits so the barrier to market entry is so high small business cannot have access to capital. Hello to Jimmy Carter stagflation.
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Old 09-27-2015, 02:13 PM
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Default Re: Yellen says she expects Fed to raise rates by year's end

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Right raise interest rates to double digits so the barrier to market entry is so high small business cannot have access to capital. Hello to Jimmy Carter stagflation.
there were more small businesses starting under carter than "Carter's got little liver pills" or "Van Camps has pork n Beans" as the sayings go. Specialty shops actually started under him. Teddy bears, fireplaces, bed n baths all only sold one type of item and consumers loved it...
till the Reagan revolution...
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Old 09-28-2015, 09:25 AM
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Default Re: Yellen says she expects Fed to raise rates by year's end

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Originally Posted by saltwn View Post
there were more small businesses starting under carter than "Carter's got little liver pills" or "Van Camps has pork n Beans" as the sayings go. Specialty shops actually started under him. Teddy bears, fireplaces, bed n baths all only sold one type of item and consumers loved it...
till the Reagan revolution...
Higher interest rates raise the cost of capital, the more expensive capital is the greater the hurdle to small business formation and capital investment. Double digit savings account interest rates require lenders to charge higher interest rates to borrowers creating a stagnant economy with supply shortages leading to inflation, stagflation. That is just common sense. Do you have anything besides colorful, speculation to support your claims?
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Old 09-29-2015, 02:17 AM
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Default Re: Yellen says she expects Fed to raise rates by year's end

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Originally Posted by AZRWinger View Post
Higher interest rates raise the cost of capital, the more expensive capital is the greater the hurdle to small business formation and capital investment. Double digit savings account interest rates require lenders to charge higher interest rates to borrowers creating a stagnant economy with supply shortages leading to inflation, stagflation. That is just common sense. Do you have anything besides colorful, speculation to support your claims?
Incrementally raising it will be great. I remember a savings account when I was 17 or so that gave 8 and a half % interest. That was the highest at the time. But boy howdy them was the days. No borrowing was still 3-6% depending on your credit. Yes we need higher rates because that would be more natural. then when things loosen up again and start flowing they will come down. but frickin 1% to 2.5% is crazy and dumb. nobody can save on that.
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Old 09-29-2015, 08:30 AM
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Default Re: Yellen says she expects Fed to raise rates by year's end

We must remember that the reduction in the prime interest rate by the Federal Reserve was for the benefit of the banking industry but it harmed the US economy overall.

Many people, especially retirees, had their assets in Treasury securities because they're a very safe investment that provides a return. With the slashing of the prime rate their retirement income from T-bills all but disappeared. My parents had hundreds of thousands of dollars in T-Bills and their retirement income literally dried up because the Fed cut the interest rates.

Hundreds of billions of dollars in spending, that supported millions of jobs, was instantly wiped out by the Fed because it artificially reduced the prime interest rate but the wealthy bankers benefited. Always remember that the Federal Reserves primary interest is the Banking Industry and not the American People or even the US economy. Their ideology is "What's best for the bankers is best for America" even when it financially hurts the American people.
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Old 09-29-2015, 08:41 AM
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Default Re: Yellen says she expects Fed to raise rates by year's end

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Originally Posted by AZRWinger View Post
Higher interest rates raise the cost of capital, the more expensive capital is the greater the hurdle to small business formation and capital investment.
Nonsense. The cost of capital (i.e. interest rate) doesn't significantly influence the creation or expansion of enterprise as it's merely rolled into the business plan.

While under-capitalization is often cited as the reason behind the failure of new enterprises that doesn't refer to the "cost of money" (i.e. interest rate) but instead that the owner didn't secure enough capital (money) to fund the start-up to begin with. This is generally reflective of the owner not having or not creating a viable business plan that identifies the capital costs of the start-up.
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