posted ago by InfinitelyWiseGerbel
+14 / -0
...and the Fed raised rates many times under Trump admin.
But, since Fed rate is near zero, doesn't that mean that the stock market is like dry kindle ready to burn at the slightest spark? And the Fed will be powerless to do anything about it, since it can't lower rates anymore?
Combine this with capital gains tax increases, minimum wage increases, lax immigration policy, and maybe the biggest issue of all - the losing of America's energy independence - are we in for a massive economic downturn?
I did some profit selling in my portfolio, but now i'm thinking of slashing holdings even more...
...and the Fed raised rates many times under Trump admin.
But, since Fed rate is near zero, doesn't that mean that the stock market is like dry kindle ready to burn at the slightest spark? And the Fed will be powerless to do anything about it, since it can't lower rates anymore?
Combine this with capital gains tax increases, minimum wage increases, lax immigration policy, and maybe the biggest issue of all - the losing of America's energy independence - are we in for a massive economic downturn?
I did some profit selling in my portfolio, but now i'm thinking of slashing holdings even more...
The Feds will most likely go to negative rates by the end of the year. That is my prediction. Economic downturn is only a matter of time as well.
You might be right. Powell has stated publicly he is not looking to go to negative rates, but things have certainly changed since then.
Zero % interest rates are an indirect tax on those of us who conservatively save and don't borrow. We are the ones financing these runaway deficits. I don't own any stocks or real estate, all cash earning 0.02% but don't care; just waiting for the inevitable implosion.
Yes! low rates punish savings accounts, and over time inflation will punish savers even more. Minimum wage will have an effect on inflation
The first leg of the chair getting kicked out from under is real estate. Won't take a strong kick, either. Rents and prices are falling, have been all year.
They need to keep housing going, or it all falls down.
We'll be lucky to get a 2008 crisis and recession. With Obama's shadow government, I expect at least that, because it will open the door to new bailouts to make the 1%ers even richer. They had to suffer so much, under Trump!
didn't know about home prices. do you know of a current chart for home prices, preferably inflation adjusted? i'm currently searching around.
Edit: found this one https://inflationdata.com/articles/wp-content/uploads/2013/06/Inflation-Adj-Housing-Prices.jpg
Get rid of paper currency, and move to negative interest rates. Totally globalist thing to do.