re: rate cut by Feds just announced

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What you need to know is the fed is supposed to ensure the fed funds rate is in line with economic output.

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If I were Russian and had to read this collection of words in response to my prior post I would legit have an aneurysm

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What you need to know is the fed is supposed to ensure the fed funds rate is in line with economic output.

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I think I just had an aneurysm...

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You my friend are writing out of your arse

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Lawricks33

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Just FYI.
It is generally good idea to know the background of posters you're addressing before issuing a "writing out of your arse" invective.

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Hence the response from today.

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The "response" today may have to do with other issues:
(1) A tepid, useless statement in behalf of the G-7 / Central Banks this morning, followed by (2) Powell's proclamation of Fed "uncertainty" on the heels of its 50BP emergency cut, and (3) Powell's intimation that there were no plans for further cuts despite the repo situation and markets having built in 75-100BPs, or (4) inevitability.

I am not a Powell hater.
However he inexplicably undercut any effect of the Fed's actions today.
IMO it was among his poorest days as Fed Chair.

Dude, you have been told you are wrong by several people and you still continue to spew your drivel.

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I'm not smart enough to understand this shite looks to me like the fed might run out of ammo.

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They will. We've kept rates too low for far too long. If we had a recession right now we'd be looking at negative rates. Paying a bank for them to lend your money

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They will. We've kept rates too low for far too long. If we had a recession right now we'd be looking at negative rates. Paying a bank for them to lend your money

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Central banks run out of ammo when their debt (or equity, however you consider their currency) becomes worthless. Just like a regular bank, when nobody trusts their paper, they're done. In the case of the Fed, they have ammo until nobody wants to hold the US dollar. Until then, they can buy treasuries, mortgages, equities, old boots, or anything else that they can drum up an acceptable excuse to buy. They can definitely drive "the markets" up, in dollar terms, but that's not the same as improving the economy.

Bernanke bought long duration US govt debt and even mortgages, which many thought exceeded his commission, so I'm not sure why Powell can't buy the S&P 500. Some of his peers around the world are buying stocks, BOJ, SNB, probably more. The ECB buys private debt. If Powell decides it's worthwhile, I'm sure plenty of investors would wholeheartedly agree. And we know for a fact by now, that the considerations of savers are irrelevant.

Just understand that this comes with a cost. Every step in "monetary easing" is an incremental debasement of the currency. That's been true since 1913 (or 1790, or 200 AD, or however far back you'd like to look) and these things can last longer than you'd think, but they do eventually reach that point of no value. Eventually the people being stepped on feel the boot on their neck. Bernanke said that a determined central bank can always create inflation, but he never said they can always stop it. Hopefully we (and our children) have all reached John Maynard Keynes' "long run" before that happens, but I doubt it.

Um, how can I get your deal? I have great credit and two properties I’m looking to refinance.

So damn stupid by the fed