Stock market decline

Smurfs are blue

 

https://www.cnbc.com/2017/06/27/yel...ancial-crisis-not-likely-in-our-lifetime.html

Says the 72 year old former fed chairman

 

Its truly poor Fed policy to encourage businesses (or individuals) to sit on cash. Because inflation was so low for most of the last 10 years, there is little to no opportunity cost to sitting on cash, as it is not devalued by inflation. Also because interest rates were so low, you couldn't make much money from interest, affecting the bond (and to a lesser extent) the equity markets. It becomes more profitable in a period of low interest rates to buy back stock, and use other techniques to hoard cash or their equivalents, which leads to lower investment in things that add to productivity and GDP.

I have no doubt that many companies and people have been sitting on cash, and will temporarily move to cash in a time of increased uncertainty. However, for the Fed to encourage this by keeping interest rates too low results in lower GDP and less growth. Both are not good for the long term health of the economy.

 

Opportunity cost always happen when you sit on cash. It never goes away. Opportunity cost and inflation are two separate items.
Again, I know low interest rates can not continue indefinitely. You keep stating the given. But to honestly think that the recent fed hikes haven’t been overly aggressive is ignoring reality. Obviously those in the market think it’s been to aggressive as whitnesed by the recent declines. A simple google search pretty much shows all the market experts in agreement with this.

 

I'm not whitey you're whitey.

 

Meh...Fed this....equity that......What you all forget is its all ball bearings these days


And of course we are heading to a decade long Depression....I finally have a matching 401K again, so of course the market will tank...Sorry 'bout that.

 

Best time to be buying is during the recession .You just can't retire until later .

 

Watch Repubs ruin the economy, wait for the Dems to fix it? Rinse, repeat. Sixty years of this shit. Never changes.

 

Socialism fixes zero.

 

Superdino bringing the ghost of casby back for Christmas!

 

My 401k has taken a whuge shit (thousands) the past few months. I've been debating making a move on it since it's one of the accounts I no longer contribute to. It continues to go down but I'm not sure if I should just let it ride or cut my losses and move the month elsewhere. It's a retirement account I never rolled over into any of my new ones.

 

Ah yes, the Fox Fear Monger series.

 

yes, yes...lets go full bore into socialism....that ALWAYS ends well.

 

It seems to work well for Finland, Norway, Sweden, the Netherlands, etc.

 

Did you forget an emogi? like

 

Because the US is exactly like those countries.

 

wives tales......

 

Lies

Don’t soften language. It’s lies.

 

That article brings up one (of thousands) thing that is utterly disgusting that the anti-American left loves to fight and wants to completely destroy - freedom of choice, particularly in schools.
One way to save our republic is to free ourselves from government intrusion and control of education, which is ruining the future of the American people.