What is?

[YourNameHere 10+ year member]

 

[YourNameHere 10+ year member]

 

[ThxOne Premium Member]

Who was POTUS when the economy tanked?

If Biden is at fault for inflation recovery following the recession that occurred during the previous administration, then the previous administration must be at fault for the recession.

Can you tell us who was the POTUS in said previous administration?
I'll give you a hint: His last name starts with "T" and ends with "rump".

Right out of the playbook. You are preeeeeeedicktable.

 

[Jimi77 Premium Member]

I wasn't aware that I work and earn money to make the central banks happy... I thought it was to sustain my existence, pay for the things I need to live at a reasonable cost. My bad.

I'd say to certain degree, we're all working to make the central banks happy. If you benefit from economic growth, credit markets, etc, then you benefit from inflation.

 

[Jimi77 Premium Member]

Interest rates do typically fall during a recession but even with covid going on, I wouldn’t call that a recession. The GDP never declined, spending never stopped. The interest rates are high due to the fact of inflation being so high. They are trying to calm that down. Now why did they really get lower during the trump years? It started from not many people buying houses and many investing in the bond market which causes the fed to lower interest rates. Banks can now borrow at lower rates and this allows us to borrow at lower rates. We have been through recessions before and the rates never got that low. They typically on the low end would be in the 4% range.

Let’s all be aware that covid and how the government handled everything is what caused the mess we are in. We can’t really blame trump or Biden alone.

There wasn't a recession, but the Central Banks basically made a pre-emptive strike against the inevitable recession that the pandemic was going to cause. In addition to the gov't, the Fed went way overboard as well. The silly part is the recession was inevitable, there's no way the global economy "shuts down" and there isn't a recession. All the Fed, Trump and Biden did was delay the inevitable and make it worse than it had to be.

 

[ThxOne Premium Member]

I'd say to certain degree, we're all working to make the central banks happy. If you benefit from economic growth, credit markets, etc, then you benefit from inflation.

They profit from my sweat... what do they give in return?

 

[djdilliodon!]

They profit from my sweat... what do they give in return?

They give you this

 

[ThxOne Premium Member]

They give you this

 

[Jimi77 Premium Member]

They profit from my sweat... what do they give in return?

They create a very liquid credit market, they manage inflation & interest rates, they dumped money into the economy(s) during Covid, they buy a shitload of US Treasury debt.

 

[Jimi77 Premium Member]

It’s exactly why you can’t really point the finger. There are policy decisions that may have some affect on certain things but they normally aren’t going to make tremendous differences . The rates being so high now is a must cause you have to calm inflation. Can’t really blame that on Biden and can’t really blame trump as it was a pandemic.

You research you will find multiple different reasons why rates went so low. There is no doubt the bond market is tied to interest rates. When you have people buying up bonds like crazy, the fed drops rates cause it can screw them in the end. That rate drop directly correlates with bank rates as they get those rates too. This did indeed happen during covid. So if a bank can borrow at .25% and make 2% that is a nice profit. Plus you have tons of banks competing that limits them on how much they can make cause these days it’s so easy to shop around for the best deal.

I owned a mortgage company for years. The internet has not made rate shopping better, it's made it worse. There is an illusion of banks fighting for your business, but you really only have a few players in the secondary market, so all our loans up in the hands of the same few aggregators even if we all got our loans from different companies to begin with. And banks don't really make their profit by borrowing at the Fed Funds rate and charging a premium - that takes way too long to make their money and not nearly profitable enough for the banks. The banks make their money by just printing it. When the bank borrows money at .25% from the Fed it's all printed money, then they lend you that printed money at 2%. In essence their gross profit is almost infinity because it's all printed money. Then the mortgage is securitized and sold off, which is where they actually make their money. So our IRA's (etc) buy these mortgage bonds and collect 2% over 30 years, where as the banking system collected ~5-6% upfront over the course of a few months.

 

[Jimi77 Premium Member]

The more I get to know DeSantis, the more I like anybody but DeSantis.

https://www.thestreet.com/investing/bud-light-just-made-new-powerful-enemy#:~:text=Florida%20Governor%20and%20presidential%20candidate,derivative%20lawsuit%20against%20the%20company.

 

[ThxOne Premium Member]

They create a very liquid credit market, they manage inflation & interest rates, they dumped money into the economy(s) during Covid, they buy a shitload of US Treasury debt.

So nothing that really affects me in a wholly positive way.

 

[RobGMN Premium Member]

Right out of the playbook. You are preeeeeeedicktable.

And…you can’t answer the questions without wrecking your own narrative.
Talk about predictable!

 

[ThxOne Premium Member]

And…you can’t answer the questions without wrecking your own narrative.
Talk about predictable!

Well all I can say is you are entitle to FEEL any way you like.

 

[RobGMN Premium Member]

Well all I can say is you are entitle to FEEL any way you like.

It’s not an opinion. You didn’t answer the question. Your narrative is wrecked.