Fed Decision Tomorrow 2 PM ET

[brooks85]

I referenced a former Federal Reserve chairman (Alan Greenspan) and a former Treasury Secretary (Larry/Lawrence Summers) because they are two people that held government positions that are pertinent to this thread that was talking about a Federal Reserve decision.

Are you that fukking dense that you couldn't put those things together?

Greenspan is someone I have never liked, but yes, I do feel that Larry Summers could be considered someone to look up too. He is formerly one of the most powerful individuals in this nation (as Treasury Secretary). Also, while not business related, he is the former president of one of the U.S.'s top universities, Harvard. Yes, I feel Larry Summers could be an "idol" that a business student could look up to.

I prefer Robert Rubin over the above mentioned people though. He was the fukking man at Goldman Sachs and I believe he is the second best Treasury Secretary ever, after Alexander Hamilton.

brooks85, don't try to be some fukking academic on a fukking Sports Betting website.

You are now on my ignore list for having the gall to even think you know anything.

quote bill clinton much? lol

robert rubin, another guy who is at fault for the GFC and probably profited off it, real nice idols. Summers and rubin both under clinton's run, I see a trend here.

[andywend]

Number of benefits to raising interest rates.

- It's a huge part of personal finance. As rates go down, so does the income of millions of Americans. Read an article last year or so that estimated if American's were receiving the same interest rate that had in 2008. Americans would have ~$450 million more to spend per year.

- Think about the tax this puts on pension plans. Low interest rates raise pensions plan liability because it raises present value of future pension payments.

- Low Interest rates keep energy and commodity prices high. If rates are high, miners and drillers will bring more out of the ground in order to invest the proceeds. But if rates are low, the opportunity cost of keeping oil in the ground is also low and so there is less incentive to bring it to market. Low interest rates have the same effect on other commodities by reducing the opportunity cost of holding stocks off the market in the hope of higher prices. If the expected increase in prices exceeds the rate of interest it is always in the interest of commodity owners to hold on to what they have. (Harold Hotelling theory)

- Low interest rates increase unemployment. Self explanatory

- THE MAIN ISSUE: Low interest rates discourage banks from lending. Banks are presently sitting on $1.5 trillion of excess reserves that could be loaned immediately. One reason they don’t lend is because the Fed pays them interest on these reserves – a policy that began, perhaps not coincidentally, just at the beginning of the financial crisis. Although the rate is low, .25%, it is actually considerably more than banks can earn on all Treasury securities with maturities of less than 2 years, and not much below those on maturities up to 5 years.

It seems difficult to simply raise interest rates, due to how it would reduce aggregate demand, put downward pressure on prices, and exacerbate the economic crisis. However that can be dealt with if you raise inflationary expectations. For instance, if the interest rate would be 3 percent in a zero inflation environment and lenders come to believe that inflation will be 2 percent, then the market interest rate they will charge on loans should rise to 5 percent so that they will still get the same 3 percent rate after inflation.

Now, I get there are compelling arguments on both sides of this thing, but a healthy economy has a much more healthy ROI, and that begins and ends at the interest rates.

What about ALL THE MONEY the U.S. borrows each year? If you raise interest rates, the amount of interest we have to pay on our debt rises which makes the debt rise even faster and you know the democrats aren't going to stop over-spending no matter what the situation is.

Have to agree that bubblebutt is quite annoying. Threatening all the time to put people on ignore. Does he honestly believe people are going to care? What a whack job.

[brooks85]

What about ALL THE MONEY the U.S. borrows each year? If you raise interest rates, the amount of interest we have to pay on our debt rises which makes the debt rise even faster and you know the democrats aren't going to stop over-spending no matter what the situation is.

I'd say the odds are slightly better than getting an intelligible response from king mayan related to anything in this thread.

[Sam Odom]

I've already taken multiple economics classes on my way to my Finance degree...

You are as 'Smart' now as you'll ever be...

You'll be surprised how dumber you'll become with age

[jjgold]

Chalky great post

No idea what a see is

Rich are getting richer now

[ACoochy]

I referenced a former Federal Reserve chairman (Alan Greenspan) and a former Treasury Secretary (Larry/Lawrence Summers) because they are two people that held government positions that are pertinent to this thread that was talking about a Federal Reserve decision.

Are you that fukking dense that you couldn't put those things together?

Greenspan is someone I have never liked, but yes, I do feel that Larry Summers could be considered someone to look up too. He is formerly one of the most powerful individuals in this nation (as Treasury Secretary). Also, while not business related, he is the former president of one of the U.S.'s top universities, Harvard. Yes, I feel Larry Summers could be an "idol" that a business student could look up to.

I prefer Robert Rubin over the above mentioned people though. He was the fukking man at Goldman Sachs and I believe he is the second best Treasury Secretary ever, after Alexander Hamilton.

brooks85, don't try to be some fukking academic on a fukking Sports Betting website.

You are now on my ignore list for having the gall to even think you know anything.

Last thing I'd want to be doing is bragging about the people who made the regulations that has sent ur country 18 trillion in the hole.

How could you possibly look up to such bad people??

[bubblebuttluv]

Last thing I'd want to be doing is bragging about the people who made the regulations that has sent ur country 18 trillion in the hole.

How could you possibly look up to such bad people??

I admire Rubin for his time at Goldman Sachs mainly.

And no one man makes regulations and then it is set in stone, because in America we have this thing called Checks and Balances.

Blaming a guy like Rubin is like blaming some random Senator from Iowa.

The only thing that could make a single set decision from one person is an executive order from the president and Rubin was not the president and an executive order isn't permanent.

Btw, foreigners talking about the U.S. is always awful form.

I couldn't give a single shit about the country you're from, but you foreigners love to criticize the U.S.

[bubblebuttluv]

And if all this debt crushes America, I could care less.

Then maybe there will be a new type of government in the U.S.

[boomer62]

Will they cut the flow of money into USA financial markets?

R u for real? You have the most idiotic posts trying to create dialogue and get attention, and a dumb stupid idiot like you is commenting on real life monetary policy????
Sorry man but you are pathetic! Get a real life!

[jjgold]

There is a unreal gap now between the rich and poor and is destroying Country.

We will never see a great economy again .

Only way in future is go to communism which does work or complete socialism

[ACoochy]

R u for real? You have the most idiotic posts trying to create dialogue and get attention, and a dumb stupid idiot like you is commenting on real life monetary policy????
Sorry man but you are pathetic! Get a real life!

JJ just played you kid.

Hook, line and fukkin sinker...

[jjgold]

By end of next year it better be zero

The stock market cannot stand on its own I guess , eventually it has to or we go into a depression.

[BIGDAY]

Hey CornBin, you have any clue about economics??

[jjgold]

Might be top 10 finance guy here

market cannot go up on its own

why?

[BIGDAY]

Might be top 10 finance guy here

market cannot go up on its own

why?

It's called "funny money". I like funny money.

[newguy]

Everybody and their brother on here thinks they are Larry Summers or Alan Greenspan.

Lol, gtfo with this shit before sweep goes and buys The Wealth of Nations and starts spouting off sweep's dumbass opinion.

I've already taken multiple economics classes on my way to my Finance degree, which I will be getting next semester.

This is a gambling forum.

We're not here to talk about quantitative easing, the federal discount rate, LIBOR, or any of that shit.

I just took finals last week and got 3 weeks before I have to hit the books again, so let's saloon this shit.

I've already accepted the fact that under an Obama administration I won't be able to find my "after college career" for a while after I finish school, but fuk it. The government don't give a shit about new college grads.

JJ, just give us an ATS winner and forget this finance stuff.

Just watch Larry Kudlow tonight and you will be good.

Where do you go to school? What is your GPA? What clubs are you in? Where have you interned?

[jjgold]

Duke -2 1st half

[bubblebuttluv]

Where do you go to school? What is your GPA? What clubs are you in? Where have you interned?

Why do any of these things matter to my specific argument?

I go to a college in the northern part of Georgia, I have a 3.5 GPA, I am in no clubs now but I used to be in some political clubs and SIFE, and I have not interned yet but I am going to try and get a job at a commercial bank that multiple family members work at in rolls such as bank manager and loan issuance.

Again, why do you care so much about my specifics? I didn't want to post my college, because you might stalk bubbles. You should be able to find it easily enough since it is a military college.

My specific argument was that I was speaking from the fact that most graduates I know can't either find a job or are disgustingly under-employed and this article from last year (and not much has changed) attests to that statement. http://www.theatlantic.com/business/...ed-how/256237/

You are acting like you are some headhunter or something, lol.

[manny24]

Coach's financial portfolio is extremely diverse

dumped all his Zim Dollars just in time too

[newguy]

Why do any of these things matter to my specific argument?

I go to a college in the northern part of Georgia, I have a 3.5 GPA, I am in no clubs now but I used to be in some political clubs and SIFE, and I have not interned yet but I am going to try and get a job at a commercial bank that multiple family members work at in rolls such as bank manager and loan issuance.

Again, why do you care so much about my specifics? I didn't want to post my college, because you might stalk bubbles. You should be able to find it easily enough since it is a military college.

My specific argument was that I was speaking from the fact that most graduates I know can't either find a job or are disgustingly under-employed and this article from last year (and not much has changed) attests to that statement. http://www.theatlantic.com/business/...ed-how/256237/

You are acting like you are some headhunter or something, lol.

I ask because I get tired of hearing people complain about not being able to get a job. Jobs are available. Lots of them. My wife's employer is going to hire 1000 grads next year, mine will hire 4,000. That's 5k jobs at just two companies. But to get into either you need to be at a good school, perform well, be active in groups, and show you want it through internships. Too many people think they can go to penetrating Phoenix university and get a job making 6 figures. Are your friends going into nursing, or engineering or places where there are needs?? I know you didn't look to get called out and sorry for doing that but sick of hearing about it. Job market penetrating sucked when I graduated in 2000. I took a job working midnights at a hotel and days at a part time gig and busted ass to make it where I am today. Stop complaining and start figuring it out.