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To: expat_panama

My thought is that it’s about time to start taking profits off the table. The Fed will doubtless raise rates and that’ll tank the bond market. Higher interest rates will slow consumer spending; all the while...the market will go up as money flows into stocks out of bonds; that’s the beginning of the making of a market blow-off-top. The market will start to fall in the wake of poor earning’s news, probably this fall or after crappy Christmas sales this December.


7 posted on 03/22/2015 11:34:11 AM PDT by Rich21IE
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To: Rich21IE
Fed will doubtless raise rates

--and it's for sure the sun will expand and fry all life on our planet.  If it's not happening any time soon then we've got a lot to do in the mean time.   While we can set aside worrying about the sun, the Fed's time frame is a bit less certain but so far I'm hard pressed to see any serious reason why a rate hike is needed any time in the foreseable future.  Somehow everyone's got it in their heads that the Fed has to raise rates as soon as possible just so they can lower 'em again later.  The only reason the Fed does rates is for inflation, and if there's no inflation there's no rate hike. Ever.

8 posted on 03/22/2015 12:35:00 PM PDT by expat_panama
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To: Rich21IE
higher interest rates will slow consumer spending...

Do we really know that, and which consumer spending will it slow? If it's for imports that get charged by the financially stupid, how does the money they spend help the economy all that much?

In spite of the low interest on savings for over a decade now, a lot of seniors have a lot of money. The plan was to spend the interest. How many are spending less because of low interest rates? I suspect that a lot of retiree spending would be in local economies. How many conscientious savers would spend more if their savings were enhanced by earning interest?

The government is addicted to those 0% interest rates. Remember back when the interest rates were first lowered? The reasoning was so the gov could pay off its debts while the rates were low. That's worked out real well.

The definition of insanity is....well, we all no the definition. Doesn't it just make sense to bring those interest rates back to where they were when the US economy was functioning?

29 posted on 03/26/2015 7:26:11 AM PDT by grania
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