Home Mail MemberMap Chat (0) Wallpapers
Go Back   ChiefsPlanet > The Royal Lounge > D.C.

Reply
 
Thread Tools Display Modes
Old 03-20-2014, 11:16 AM  
petegz28 petegz28 is online now
Supporter
 
petegz28's Avatar
 
Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $13092
Janet Yellen could be the economic saviour we've been waiting for..

Yesterday Yellen announced that The Fed will continue to taper off bond buying and forecast interest rates starting to rise as early as next year. This is already starting to show signs that contrary to Wall St.'s economic guru's, will bolster the economy.

Copper Falls Most in Week as Fed Signals Higher Interest Rates
http://www.bloomberg.com/news/2014-0...e-outlook.html

Gold’s Biggest Drop in 5 Months Underscores Goldman View
http://www.bloomberg.com/news/2014-0...tes-in-15.html

WTI Crude Futures Decline for First Time in Three Days
http://www.bloomberg.com/news/2014-0...ap-widens.html

While the Wall St. talking heads will cry about increased borrowing rates and prices for metals going down due to lack of demand and a slowing economy due to higher rates, the truth could not be further away.

Interest rates are at such low levels they have negative impacts on most American's, again this is contrary to the Wall St. mouthpieces. What rising rates will do is increase the value of the $ which in turn will increase purchasing power of Americans as well as lower the cost of commodities such as copper and oil thus lowering the costs of goods.

While Wall St. will cry over their "Bernanke Put" going bye-bye and paint pictures of doom because rates might go to 1%, every day Americans will slowly start to see things like increased rates on their savings accounts and lower prices at the pump.

Why Wall St. fears the rate increases is obvious. They have enjoyed a guaranteed environment of stocks rising and super low interest rates on borrowing coupled with the inflow of cash from people who typically would not invest in the market but are forced to in efforts to find some sort of yield on their savings.

As disposable income increases for people on fixed incomes via higher rates on less risky investments, as well as others who typically choose the safety of CD's and savings accounts, the economy will start to boom.

Putting money back in the pockets of those who spend it is the only way to get the economy going again. Forget the doom and gloom about how this will cost people more to get a loan for a house or whathaveyou, that's a bogus line in order to instill fear. Main St. has been left out of this "recovery" while Wall St. has benefited more than any other time in history and it has been due to excessively low rates and safety nets implemented by the Fed. Janet Yellen may be the one to finally get the Fed out of the way of Main St. which has been sorely needed. Let's hope so.
Posts: 66,836
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Old 03-20-2014, 11:26 AM   #2
FD FD is offline
Veteran
 
FD's Avatar
 

Join Date: Dec 2006
Location: Los Angeles
Casino cash: $6872
You could not be more wrong about all of this but I'll pick out three points in particular. Yellen will be more dovish than Bernanke on rates. Inflation is still at rock bottoms with no hint of it picking up in the near future. A "strong" dollar is and would be bad for the economy and the average American.
__________________
Homer: [looking at watch] Two hours? Why'd they build this ghost town so far away?
Lisa: Because they discovered gold over there!
Homer: It's because they're stupid, that's why. That's why everybody does everything.
Posts: 3,581
FD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby Piscitelli
  Reply With Quote
Old 03-20-2014, 11:29 AM   #3
FishingRod FishingRod is offline
Veteran
 

Join Date: Mar 2006
Casino cash: $6949
I no economist but I am having some trouble figuring out how raising interest rates is going to put more money in people’s pockets and lower the cost of things.
Posts: 3,279
FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.FishingRod Forgot to Remove His Claytex and Got Toxic Shock Syndrome.
  Reply With Quote
Old 03-20-2014, 11:32 AM   #4
FD FD is offline
Veteran
 
FD's Avatar
 

Join Date: Dec 2006
Location: Los Angeles
Casino cash: $6872
Quote:
Originally Posted by FishingRod View Post
I no economist but I am having some trouble figuring out how raising interest rates is going to put more money in people’s pockets and lower the cost of things.
It wont. For someone on a fixed income it will help slightly, but it will lower the value of any stocks people own, their pension values will decrease, corporate investment will decline, and American exports will be hurt. It would weaken the job market and the stock market. And since inflation is close to non existent and unemployment is still very high, its not going to happen.

Pete posted almost the exact same thread 3 or 4 years ago and was proven wrong by subsequent events on all these points. He is burying his head in the sand, ignoring the world around him and sticking to his same stupid ideas.
__________________
Homer: [looking at watch] Two hours? Why'd they build this ghost town so far away?
Lisa: Because they discovered gold over there!
Homer: It's because they're stupid, that's why. That's why everybody does everything.
Posts: 3,581
FD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby PiscitelliFD 's adopt a chief was Sabby Piscitelli
  Reply With Quote
Old 03-20-2014, 11:36 AM   #5
KC native KC native is offline
a toda madre o un desmadre
 
KC native's Avatar
 

Join Date: Feb 2009
Location: Fort Worth, TX
Casino cash: $11370
Also, most asset managers want rates to tick up.

The rally has been led by lower quality companies and active managers with a quality tilt want rates to go up so the lower quality companies are penalized for their amount of debt (interest expense). They feel an increase in rates will bring differentiation back into the market.

Bond guys are a little more nuanced. Credit guys (corporates and high yield) want rates to go up so they can get better coupons and see a differentiation in returns as well (low quality has led for them too). Intermediate bond managers don't want the price declines associated with a bump in rates but they want to reinvest at higher rates.
__________________
The diameter of your knowledge is the circumference of your actions. Ras Kass

Quote:
Originally Posted by Iowanian View Post
I'm just a little pussy from Iowa
Posts: 18,052
KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.
  Reply With Quote
Old 03-20-2014, 11:38 AM   #6
KC native KC native is offline
a toda madre o un desmadre
 
KC native's Avatar
 

Join Date: Feb 2009
Location: Fort Worth, TX
Casino cash: $11370
Quote:
Originally Posted by FD View Post
It wont. For someone on a fixed income it will help slightly, but it will lower the value of any stocks people own, their pension values will decrease, corporate investment will decline, and American exports will be hurt. It would weaken the job market and the stock market. And since inflation is close to non existent and unemployment is still very high, its not going to happen.

Pete posted almost the exact same thread 3 or 4 years ago and was proven wrong by subsequent events on all these points. He is burying his head in the sand, ignoring the world around him and sticking to his same stupid ideas.
Hate to be nit picky, stocks generally do well in the early stages of rising rates provided the increases aren't large and are fairly predictable.
__________________
The diameter of your knowledge is the circumference of your actions. Ras Kass

Quote:
Originally Posted by Iowanian View Post
I'm just a little pussy from Iowa
Posts: 18,052
KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.
  Reply With Quote
Old 03-20-2014, 11:42 AM   #7
KC native KC native is offline
a toda madre o un desmadre
 
KC native's Avatar
 

Join Date: Feb 2009
Location: Fort Worth, TX
Casino cash: $11370
And additional thoughts, Yellen is probably more dovish than Bernanke.

With that being said, the Fed realizes the low rate mistakes from Greenspan's era so I think they will be much more receptive to raising rates when it is needed to raise rates.
__________________
The diameter of your knowledge is the circumference of your actions. Ras Kass

Quote:
Originally Posted by Iowanian View Post
I'm just a little pussy from Iowa
Posts: 18,052
KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.KC native is too fat/Omaha.
  Reply With Quote
Old 03-20-2014, 12:02 PM   #8
petegz28 petegz28 is online now
Supporter
 
petegz28's Avatar
 

Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $13092
Quote:
Originally Posted by FD View Post
You could not be more wrong about all of this but I'll pick out three points in particular. Yellen will be more dovish than Bernanke on rates. Inflation is still at rock bottoms with no hint of it picking up in the near future. A "strong" dollar is and would be bad for the economy and the average American.
This is just moronic. The price of risk is so ****ed up right now. I don't know where you get this notion that a strong $ is bad considering at the moment the purchasing power of the $ is eroded on a daily basis for anyone not willing to take a excessive amount of risk for a minimal yield.

I won't even get into the economics of $-denominated assets because I don't think you are informed on such.
__________________
Posts: 66,836
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Old 03-20-2014, 12:07 PM   #9
petegz28 petegz28 is online now
Supporter
 
petegz28's Avatar
 

Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $13092
Quote:
Originally Posted by FishingRod View Post
I no economist but I am having some trouble figuring out how raising interest rates is going to put more money in people’s pockets and lower the cost of things.
Fair enough, allow me to explain:

Oil, copper, sugar, etc. are denominated in US $'s. Thus we use basic math, the lower the value of the $, the higher the cost of said goods. The higher the cost of said goods the higher the price of the end product in which they are used in.

So, logic and math dictate that if the $ rises it is worth more and therefore assets denominated in $'s come down in price because, you guessed it, the $ is worth more so can buy more of said asset.

Rising interest rates are what make the $ worth more and like anything they can be both good and bad. At this point rates are so low they are hurting so some uptick in rates would benefit the economy, contrary to the Wall St. talking heads mantra.

There is a real effect on the economy via interest rates and the effect is, as KC Native accurately pointed out and FD is refusing to acknowledge is when rates are too low for artificial reasons then it becomes damaging as as stated, we are repeating what Greenspan did only imo to a higher degree.
__________________
Posts: 66,836
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Old 03-20-2014, 12:08 PM   #10
petegz28 petegz28 is online now
Supporter
 
petegz28's Avatar
 

Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $13092
Quote:
Originally Posted by KC native View Post
And additional thoughts, Yellen is probably more dovish than Bernanke.

With that being said, the Fed realizes the low rate mistakes from Greenspan's era so I think they will be much more receptive to raising rates when it is needed to raise rates.
I am not debating here hawkish or dovish stance. I am merely commenting on the action she announced the Fed would take. An action Bernanke should have done about 3 years ago.
__________________
Posts: 66,836
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Old 03-20-2014, 12:22 PM   #11
Amnorix Amnorix is offline
In BB I trust
 
Amnorix's Avatar
 

Join Date: May 2003
Location: Boston, Mass.
Casino cash: $8775
You're hyper-focused on the consumer Pete, which is where you go wrong.

When the world as we know it was on the brink back in 2008'ish, companies went into a shell, investors dove under rocks, and banks stopped lending. This led to a tremendous credit crunch which literally seized the normal mechanics of money moving through the economy. Partly because the entire world suddenly, en masse, became massively risk-adverse, the entire economy started to tailspin, and ANY company with even the slightest hint of significant risk either went under or was on the edge. Hence the numerous federal programs providing credit to try to keep companies afloat. Because NO ONE ELSE could or would extend money, the feds had to.

The effects of this linger on today. Companies are still somewhat more risk adverse than usual, and the pendulum has yet to swing back to center even for banks in terms of ordinary lending. Some/many continue to refuse to lend to companies who are not "perfect" from a credit standpoint.

Companies are not engaged in mergers and acquisitions to the same degree they were, but instead are often buying back their own stock, which is somewhat nice for stockholders (at least short term) but doesn't tend to help the economy in any way, shape or form. This is partly because banks aren't willing to lend to finance such transactions.

Cash is the grease that lubricates the wheels of the economy and which keeps them spinning and the economy growing.

To push the pendulum back to the middle and incentivize banks and others to be more comfortable with SPENDING money (rather than hoarding it), the Fed has kept interest rates at record lows so that everyone is more confident about economic projections and that the economy will have sufficient liquidity to keep going.


All of this matters not just to the fat cats of Wall Street, but right on down to main street. So you can focus on frigging sugar etc. if you want to, but there's more involved here than how much coffee a buck can buy.
__________________
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 33,541
Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.
  Reply With Quote
Old 03-20-2014, 12:22 PM   #12
Amnorix Amnorix is offline
In BB I trust
 
Amnorix's Avatar
 

Join Date: May 2003
Location: Boston, Mass.
Casino cash: $8775
Quote:
Originally Posted by petegz28 View Post
I am not debating here hawkish or dovish stance. I am merely commenting on the action she announced the Fed would take. An action Bernanke should have done about 3 years ago.

Sure, if you wanted the economy to seize again. Dumbass.
__________________
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 33,541
Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.
  Reply With Quote
Old 03-20-2014, 12:29 PM   #13
Amnorix Amnorix is offline
In BB I trust
 
Amnorix's Avatar
 

Join Date: May 2003
Location: Boston, Mass.
Casino cash: $8775
Quote:
Originally Posted by FD View Post
Pete posted almost the exact same thread 3 or 4 years ago and was proven wrong by subsequent events on all these points. He is burying his head in the sand, ignoring the world around him and sticking to his same stupid ideas.

Yep.
__________________
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 33,541
Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.
  Reply With Quote
Old 03-20-2014, 12:37 PM   #14
InChiefsHell InChiefsHell is offline
Rockin' yer FACE OFF!
 
InChiefsHell's Avatar
 

Join Date: Feb 2003
Location: Omaha, Nebraska
Casino cash: $9211
I don't pretend to understand any of this, really. But it seems we've had record low interest rates for a very very long time now. Don't they have to come up at some point?
__________________

We have a million reasons for failure, but not one excuse...
Die Donks, DIE!!

A quote:
"Oh well, there's always next year. We'll be better then, you'll see..." - Every Chiefs fan for the last 42...crap...43 years...

Quit listening to all that crappy new music and check out HEADSTRONG!
Posts: 13,115
InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.InChiefsHell threw an interception on a screen pass.
  Reply With Quote
Old 03-20-2014, 12:37 PM   #15
petegz28 petegz28 is online now
Supporter
 
petegz28's Avatar
 

Join Date: Feb 2005
Location: Olathe, Ks
Casino cash: $13092
Quote:
Originally Posted by Amnorix View Post
Sure, if you wanted the economy to seize again. Dumbass.
Yeah, yeah, yeah..the economy would have dried up.....BULL & SHIT!

The consumer which ironically drives a consumer based economy, which ironically is what we are, has less disposable income ....wha nevermind, it's pointless to explain this to people who are stuck on CNBC.
__________________
Posts: 66,836
petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.petegz28 is obviously part of the inner Circle.
  Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump




All times are GMT -6. The time now is 06:41 PM.


This is a test for a client's site.
A new website that shows member-created construction site listings that need fill or have excess fill. Dirt Monkey @ https://DirtMonkey.net
Powered by vBulletin® Version 3.8.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.