Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: sylvester80 who wrote (1156189)	8/11/2019 1:31:23 PM
From: Honey_Bee	4 Recommendations Recommended By Conrad Murphy FJB locogringo TideGlider Read Replies (3) \| Respond to of 1574005

Perhaps you have some interest in knowing why the Fed didn't cut rates during Obama's reign of terror: Between 2008 and 2015, the Fed kept the rate at zero. Recession ended in June 2009.

To: sylvester80 who wrote (1156189)	8/11/2019 6:01:32 PM
From: RetiredNow	Read Replies (2) \| Respond to of 1574005

While technically true, that the Fed did not lower rates even once during the Obama years, you are ignoring the elephant in the room. At the beginning of Obama's Presidency, the Fed had already reached the lower bound of Zero Percent Interest Rate Policy. Then they began to implement QE1 through QE3, all during Obama's two terms in office. QE was another way of accomplishing even lower rates across the yield curve by bringing the enormous purchasing power of newly printed dollars to buy up as many treasuries as needed. Here's a history of rate movement and Yes: en.wikipedia.org Here's an economic proof white paper from Northwestern University that proved the impact of QE lowering the yield curve through the purchase of bonds. brookings.edu So, in conclusion, you are wrong in your overall message that the Fed did not lower rates during the Obama years. They absolutely did, but they did it through QE instead of through the Fed Rate. Those actions have had the effect of blowing the largest stock market and bond market bubbles in the history of the USA. It has also rigged the wealth transfers in favor of the asset holders, the top 1%, and against the 99%, which is why we are seeing the rise of Socialists such as yourself. You properly diagnose the problem, but your solution is to recycle the failed policies of the past. A better solution would be to fix the root cause, which is the Federal Reserve destroying our free markets through monetary policy central planning and manipulation. We'll see what happens next, but I have a feeling it won't be pleasant for anyone. Reckonings that restore market balances never are. They are usually accompanied by revolutions and world wars. I hope we can avoid that fate this time. But history repeats its cycles and humans never learn from the past. It's the tragedy of our race.