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Stock Market Crash Proves Federal Reserve Must Cut Interest Rates
National Interest ^ | 8/5/2024 | Desmond Lachman

Posted on 08/05/2024 9:37:08 AM PDT by whyilovetexas111

We have to hope that the Federal Reserve realizes that today’s stock market weakness is unlikely to be a passing fad given the poor underlying world economic and political fundamentals. Maybe then the Fed will do the right thing and start cutting interest rates aggressively to provide long-overdue support to a weakening U.S. economy.

(Excerpt) Read more at nationalinterest.org ...


TOPICS: Government; History; Politics; Society
KEYWORDS: bidenrecession; economics; stockmarket; useconomy
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So are we headed back to 2008?
1 posted on 08/05/2024 9:37:08 AM PDT by whyilovetexas111
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To: whyilovetexas111

No, it’s Bidenomics being a success.
Just wait, it’ll be pawned off as a “sign that the economy is going great”.


2 posted on 08/05/2024 9:38:48 AM PDT by Darksheare (Those who support liberal "Republicans" summarily support every action by same. )
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To: whyilovetexas111

the federal reserve is the problem


3 posted on 08/05/2024 9:41:31 AM PDT by wny
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To: whyilovetexas111
Cut interest rates so we can go back to 40-year high in inflation?
4 posted on 08/05/2024 9:42:14 AM PDT by Kazan
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To: whyilovetexas111

Cut interest rates so hedgefunds can continue to make risky investments using devalued yen to fund it. Makes sense.


5 posted on 08/05/2024 9:42:17 AM PDT by ProudDeplorable (Concentrated power has always been the enemy of liberty. ~ Ronald Reagan)
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To: whyilovetexas111
Dumpster fire for a Black Monday.


6 posted on 08/05/2024 9:42:39 AM PDT by C210N (Mundus vult decipi, ergo decipiatur.)
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To: wny
The Federal Reserve printing oodles of money for years WAS the problem.

Higher interest rates are the only way to cure that problem.

7 posted on 08/05/2024 9:43:10 AM PDT by Kazan
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To: whyilovetexas111

We should be headed back to 1983.

There is so many dollars swamping the money supply, interest rates need to be high to drain out a massive amount of excess dollars.

Inflation is a lot higher than the Biden administration is willing to admit in an election year. It is at least 12%.

Inflation will eat away at the economy if it isn’t controlled soon.

Government also needs to be cut drastically. Imposing a hiring freeze on the Federal Government would be a good start.


8 posted on 08/05/2024 9:44:19 AM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: whyilovetexas111

“Crash” or an emerging volatility in the extreme?


9 posted on 08/05/2024 9:44:53 AM PDT by equaviator (If 60 is the new 40 then 35 must be the new 15.)
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To: Kazan

Exactly!!!


10 posted on 08/05/2024 9:45:41 AM PDT by God luvs America (6young 3.5 million pay no income tax and vote for DemoKrats...)
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To: whyilovetexas111

11 posted on 08/05/2024 9:46:17 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: Darksheare
Stock Market Crash Proves Federal Reserve Must Cut Interest Rates

That's like trying to put out a fire by throwing gasoline on it..................

12 posted on 08/05/2024 9:47:49 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: whyilovetexas111
Lowering interest rates now is a really bad idea. It will only kick the can down the road.

But our friends in the federal government love to kick the can down the road. So of course they will lower rates.


13 posted on 08/05/2024 9:49:42 AM PDT by Leaning Right (The steal is real.)
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To: whyilovetexas111

14 posted on 08/05/2024 9:50:05 AM PDT by Yo-Yo (Is the /Sarc tag really necessary? Pray for President Biden: Psalm 109:8)
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To: whyilovetexas111

Raise rates OR aggressively cut rates and STOP SPENDING. It is not rocket science. If they could just stop pouring gas on the fire and show that they actually desire for the economy to improve, it would. They are like angry children and refuse to concede on any of their devastating policies.

1. Stop illegal Immigration + funding it
2. Stop funding Ukraine
3. Stop the ridiculous green agenda
4. Cut rates

The markets would soar. Capital would flow in to the USA. The housing market would take off. Jobs would improve. That they are deliberately doubling down on destruction should be obvious.


15 posted on 08/05/2024 9:51:59 AM PDT by 1malumprohibitum (I’m )
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To: whyilovetexas111

I’d see what tomorrow brings. The market has made a slight mark forward from the horrendous beginning of trading today.


16 posted on 08/05/2024 9:53:25 AM PDT by woweeitsme
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To: whyilovetexas111
Like a heroin addict, the elites just want more liquidity made up out of thin air.

Time for some political and economic Narcan.

17 posted on 08/05/2024 9:53:28 AM PDT by pierrem15 ("Massacrez-les, car le seigneur connait les siens" )
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To: whyilovetexas111

It’s a feature, not a bug.

Rates should go up. Inflation must die.

That breaks a LOT, a LOT of eggs.


18 posted on 08/05/2024 10:06:21 AM PDT by Mariner (War Criminal #18)
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To: Pontiac

“There is so many dollars swamping the money supply, interest rates need to be high to drain out a massive amount of excess dollars”

Correct, but I think inflation is a way that the big guys exploit we little guys.


19 posted on 08/05/2024 10:11:47 AM PDT by cymbeline (we saw men break out of a concentration camp.”)
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To: Kazan

Cut interest rates so we can go back to 40-year high in inflation?
————

No one wants to go back to the basics. Cut interest rates == higher inflation, start a War?History shows Inflation increases by 40 percent, with even more supply side inflation, …not to mention Gold increases greatly.

There is no way out of the trap we are in, given our insane debt, it is mathematically impossible to solve in our lifetime. DEFAULT is coming….just like Zelensky did last week…..and all other 4,600 paper currencies over history.


20 posted on 08/05/2024 10:13:29 AM PDT by delta7
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