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re: Feds Raise Rates a Quarter Point
Posted on 9/16/26 at 2:06 pm to Rip Torner
Posted on 9/16/26 at 2:06 pm to Rip Torner
quote:
Lol we pay over 1 trillion dollars in interest on the debt every year to bond holders. Bonds determined by interest rates, good Lord see yourself out
Holly frick
You are completely clueless.
“Bonds are determined by interest rates” doesn’t mean the Fed sets the interest rate on Treasury bonds.
Yes, when the Fed raises rates, it can influence yields. Nobody said otherwise. But “influence” and “directly sets” are two completely different things.
The reason the Fed raises rates is to control private spending.
If investors think inflation is going to stay high, they’re not going to lend the government money for 10 years at a low rate. Treasury yields move with what investors think. Not what the Fed decides.
Posted on 9/16/26 at 2:07 pm to JimEverett
quote:
Of course it is distinct. The federal reserve does not pass the federal budget.
Rip Torner is in over his head in this thread
Posted on 9/16/26 at 2:08 pm to Fat Bastard
quote:
the issue is during biden's regime and the huge increase for certain goods and services of which many have not went down post covid with supply chain issues amongt other issues.
trump has to get inflation down to where he had it first term. biden exploded it and left a shitshow.
How many trillions of dollars above our normal spending was negotiated for and approved by Trump in 2020?
Why are you leaving this out of the equation?
Posted on 9/16/26 at 2:08 pm to JimEverett
quote:THere's a saying: "when you owe the bank $10,000 the bank tells you what to do, when you owe the bank $10,000,000 you tell the bank what to do".
Fiscal policy is and should be distinct from monetary policy
quote:It's not a good comparable, because the government didn't have perpetual $2 trillion annual deficits, $40Trillion in debt to service, and mandatory spending was a MUCH smaller portion of the federal budget.
But the 70s are definitely relevant.
This post was edited on 9/16/26 at 2:11 pm
Posted on 9/16/26 at 2:08 pm to Lsut81
Why are they raising rates?
Wasn't Powell cutting interest rates in September 2024 when inflation levels were around the same as now?
Wasn't Powell cutting interest rates in September 2024 when inflation levels were around the same as now?
Posted on 9/16/26 at 2:10 pm to JohnnyKilroy
You mean something like this?
The average for 1973 shows in that US census doc as 1,660, bringing it to $166sqft.
Since you brought up the point about home sizes in 1973, I also went back and re-checked home sizes for today using government stats for that as well (so that, again, it's as close to apples-to-apples as possible). FRED says the average home today is 2,367, so that brings today's average to ~$168sqft.
Both are less expensive than my original numbers, but pulling from the same source(ish) for both, the difference shrank from $5sqft to $2sqft.
The average for 1973 shows in that US census doc as 1,660, bringing it to $166sqft.
Since you brought up the point about home sizes in 1973, I also went back and re-checked home sizes for today using government stats for that as well (so that, again, it's as close to apples-to-apples as possible). FRED says the average home today is 2,367, so that brings today's average to ~$168sqft.
Both are less expensive than my original numbers, but pulling from the same source(ish) for both, the difference shrank from $5sqft to $2sqft.
This post was edited on 9/16/26 at 2:14 pm
Posted on 9/16/26 at 2:10 pm to BBONDS25
Who is we?
Posted on 9/16/26 at 2:12 pm to JohnnyKilroy
We should be at 10% , when it was at near 0 so much money was printed and handed out like candy on Halloween. It’s been doled out ever since and except for the 2008 ( because of government policies) housing mortgage & derivatives from giving bad loans to bad risk borrowers we haven’t had a real correction. The next real correction may be when printing money is useless
Posted on 9/16/26 at 2:13 pm to Lsut81
They raise rates and now the 10YY is immediately shooting back up
Posted on 9/16/26 at 2:13 pm to Taxing Authority
quote:
Holy smokes. Why not just make counterfeiting legal?
Thanks for your detailed explanation on how rairing interest rates help lower supply side inflation. I never claimed to be an expert on economics, but you're helping me get there.
Posted on 9/16/26 at 2:14 pm to Robcrzy
quote:
They raise rates and now the 10YY is immediately shooting back up
The markets apparently don't think this will curb inflation at all
Posted on 9/16/26 at 2:15 pm to JohnnyKilroy
quote:
Nearly 30% higher on a per square footage basis in real terms is fine? You must be a fricking democrat.
Should we go state by state? You trying to paint it like Trump ruined housing is the height of ignorance. Let’s start with housing in California.
Posted on 9/16/26 at 2:19 pm to Rip Torner
quote:
You can’t be serious? Lol we pay over 1 trillion dollars in interest on the debt every year to bond holders. Bonds determined by interest rates, good Lord see yourself out
There are fixed rate bonds and variable rate bonds, only ~2% of the debt is on variable-rate bonds. The rest of it is fixed-rate, meaning they don't change based on what the Fed is doing.
Posted on 9/16/26 at 2:21 pm to SlowFlowPro
quote:
Why are you leaving this out of the equation?
You know why. It’s what he and SDVCuck do. They blame Biden when it’s Trump that started the damn fire. Biden just poured more gasoline on it.
Posted on 9/16/26 at 2:26 pm to 3down10
quote:
Inflation is fought with higher interest rates.
If its 2.4% what else do you want
10yr over 5%
Bond market imploding
Congrats to all the retards
Posted on 9/16/26 at 2:27 pm to Bard
Are you under the impression that new bonds that treasury bonds aren’t issued weekly?
Posted on 9/16/26 at 2:30 pm to CubsFanBudMan
quote:Think through the fact that we import tons of things that greatly affect the COGS of damn near everytihg we produce domestically. (including petroleum).
Thanks for your detailed explanation on how rairing interest rates help lower supply side inflation.
quote:It's not your fault man. It's mine. I just too lazy to try and explain it. If you don't understand why it's wrong, I'm not going to be able to teach it well enough. My failing , not yours.
I never claimed to be an expert on economics, but you're helping me get there.
Posted on 9/16/26 at 2:31 pm to SDVTiger
quote:
If its 2.4% what else do you want
10yr over 5%
Bond market imploding
Congrats to all the retards
0%
Yes I realize the federal reserve thinks it should be able to steal 2%.
And you ignore that part of the reason for lower inflation numbers were rates that were even higher a few years ago.
This is what happens when you increase spending. There is no such thing as an unbalanced budget. We either pay for it in taxes or debt/inflation.
This is how we are going to pay for the increase in government spending. Inflation and higher interest rates.
This is why real conservatives are against this crap and why they voted against the BBB.
Posted on 9/16/26 at 2:31 pm to Lsut81
This will trip up the stock market
Posted on 9/16/26 at 2:32 pm to Rip Torner
quote:
Are you under the impression that new bonds that treasury bonds aren’t issued weekly?
My man... you really need to look up how treasury bonds actually work. The Fed does not control long-term bond rates. In fact, when the Fed raises interest rates to fight inflation, it can actually cause long-term bond rates to drop if the maket views it as the Fed is fighting inflation.
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