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/biz/ - Business & Finance


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14252352 No.14252352 [Reply] [Original]

FED CUTTING RATES FED CUTTING RATES FED CUTTING RATES

QE4 IN EFFECT

>> No.14252371
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14252371

ids habbening

>> No.14252405
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14252405

and so it begins...

>> No.14252426

>>14252352
Wtf does this shit even mean?

>> No.14252431

as a non amerimutt, what does it mean

>> No.14252439

Nojs

>> No.14252467

>>14252426
>>14252431
The dick we're about to get fucked with just grew a few inches

>> No.14252485

>>14252467

But in a literal sense?

>> No.14252496

>>14252431
‘These things says He who has the seven Spirits of God and the seven stars: “I know your works, that you have a name that you are alive, but you are dead. 2 Be watchful, and strengthen the things which remain, that are ready to die, for I have not found your works perfect before [b]God. 3 Remember therefore how you have received and heard; hold fast and repent. Therefore if you will not watch, I will come upon you as a thief, and you will not know what hour I will come upon you. 4 [c]You have a few names [d]even in Sardis who have not defiled their garments; and they shall walk with Me in white, for they are worthy. 5 He who overcomes shall be clothed in white garments, and I will not blot out his name from the Book of Life; but I will confess his name before My Father and before His angels.

>> No.14252541
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14252541

>>14252431
>>14252426
Fed rate is a tool that is manipulated by the federal reserve to guide the economy, generally rates are raised when they want to cool of the economy and lowered when they want to stimulate it. This time may be different because the fed abused this tool to prevent catastrophe after the 08 crisis by lowering the rate to nothing, and they have been very hesitant to raise much over the past decade, so this time around when the market cycle ends the runway to work with is much shorter, which means one of the primary tools the fed uses to ease the pain of market corrections isnt available, which means they will be forced to use more unorthodox methods like more quantitative easing the next time the shit hits the fan, which everyone expects to happen very soon.

>> No.14252868
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14252868

Im ready for hyperinflation :D

>> No.14252960

>>14252426
>>14252431
>>14252485
Fed funds rate is the interest rate at which the fed loans money to banks. When the rate is lower than inflation (right now its about even with official inflation) that means the fed actually pays banks to borrow money from them.
That the fed is paying people to borrow money is a bad sign, both because of what it suggests the fed sees, and also bc getting paid to borrow money always makes banks act retarded.

>> No.14252984

>>14252960
No, that's the discount rate. The fed funds rate is the rate at which member banks lend to each other.

>> No.14253022

This is good for Bitcoin.

>> No.14253063

>>14252352
wait they are going to reduce interests
I tough it was already at the lowest possible rate

am I missing something here ?

>> No.14253095

>>14252960

thanks anon.
so if I understand correctly, the fed is the bank of banks, loans money via credit with interest rates.

meanwhile inflation is a non-stop process, but if inflation beats the bank of banks interest, and the fed starts borrowing money, getting itself into debt, they're going to ask the Treasury to bail them out by printing enough money to cover bad debts, plus enough to increase their interest rate again about the inflation rate?

so brainlet sum up is.... a massive inflation surge is coming for the US dollar?

>> No.14253214

you dont
>>14253095
understand

>> No.14253431

>>14253214

then help me understand, I'm keen to learn about this subject, if you don't have time can you please point me in the direction of recommended books/sources?

>> No.14253451

learn to
>>14253431
space
or
fuck
off
Sargon

>> No.14253453
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14253453

>>14253063

They were at zero for many years, they started upping them in the recent years but the market cant handle it.

They blew a fucking enormous bubble and now...?

Huh

>> No.14253509

>>14252426
This means that fiat will keep getting more and more worthless while asset prices will keep climbing.
Hyperinflation soon.

>> No.14253527

>>14253453
I didn't realized they raised them
well now it's pretty sure that a trump defeat in 2020 is gonna RIP this economy

>> No.14253533

With Jews you lose, its that simple.

>> No.14253593

>>14253453
>that spacing
reddit in the house

>> No.14253622
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14253622

>>14252352
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH

EAT SHIT RATE HIKE HEBREWS

>> No.14253721

>>14253431
From what I understand is banks are given an interest rate for money that has 0 risk
That is at 2.25-2.5% right now
The FED raises that to make loans more difficult to get and pay off so only the best ideas work

When the Fed lowers this number to .25% or whatever it was after 2008 the banks can't beat inflation with 0 risk so they have to loan their money to make profit
This means anyone can get a loan
The lower the rate the more retarded banks get to give out money
My brother just bought a house at 4% interest 30 years
When rates go to 0% or -.5% lending rates drop to I don't know 2% and anyone can get one
So money is basically free and prices of everything go up through inflation
Add quantitative easing to it and it's even worse becsuse the is buying bad assets to keep the economy going
In 2008/9 they built their balance sheet to like 4 trillion this time it's going above 10 trillion

All these numbers basically say our economy is sick and they're going to inflate and incentivize risk taking to kick the can down the road