Essential Economics for Politicians

What do you think lowering the interest rate is? It’s a “parlor trick” to incentivize more borrowing to bring more money into the economy...and more debt.
With a year and a half before election and the economy plateauing...what a surprise.
The President has no control over what the fed does with interest rates.
DT wanted a bigger cut, and so did the market.

The market was at 18,000 when DT was elected.
Perspective.
 

messy

PREMIER
The President has no control over what the fed does with interest rates.
DT wanted a bigger cut, and so did the market.

The market was at 18,000 when DT was elected.
Perspective.
My statement was correct and the market rose much more, percentage wise, under Obama.
Learn.
 
What do you think lowering the interest rate is? It’s a “parlor trick” to incentivize more borrowing to bring more money into the economy...and more debt.
With a year and a half before election and the economy plateauing...what a surprise.
Actually, itʻs the other way around. More money in the system, drives down interest rates , incentivizes borrowing, and drives up cost when more dollars are competing for the same amount of goods and services pre-rate cut.
 

messy

PREMIER
Actually, itʻs the other way around. More money in the system, drives down interest rates , incentivizes borrowing, and drives up cost when more dollars are competing for the same amount of goods and services pre-rate cut.
It’s both. The more money will be flying around because it’s cheaper to borrow. Rates were lowered today not by “more money in the system,” but by fiat, so people will borrow more.
 
Incorrect. Higher stock market, low inflation. QE had nothing to do with anything except the first couple of years it saved our economy from crashing.
Sucker. When you save the bond market with 6 straight years of QE, guess what that does for the stock marketʻs lenders? Low inflation- when you bail out the banks and then pay them interest on their reserves, guess what they do? They donʻt lend as much. No lend, no inflation. In fact, the largest banks held 3 to 7 times more life insurance than real estate according to FDIC balance sheets. Learn
 

messy

PREMIER
Sucker. When you save the bond market with 6 straight years of QE, guess what that does for the stock marketʻs lenders? Low inflation- when you bail out the banks and then pay them interest on their reserves, guess what they do? They donʻt lend as much. No lend, no inflation. In fact, the largest banks held 3 to 7 times more life insurance than real estate according to FDIC balance sheets. Learn
Do you have every single thing backwards about economics? Is that why you’re poor? By “poor” I mean you don’t make much money. Because you don’t understand how it works. Banks have been lending just fine, now people will borrow even more.
 
Do you have every single thing backwards about economics? Is that why you’re poor? By “poor” I mean you don’t make much money. Because you don’t understand how it works. Banks have been lending just fine, now people will borrow even more.
I donʻt expect you to understand banking when you donʻt understand simple finance terms like CLTV, ROA and ROE. Run along poser.
 
Banks have been lending just fine, now people will borrow even more.
Yes they have. But they make more and safer money on their reserves when they lend less to the public because the Fed incentivize$ them to do so to hold down inflation. The Fed has been targeting inflation for at least the last 10 years. But the uneducated look at the CPI to explain price inflation and find none because the asset classes that cause financial crisis are not a part of the basket of goods that generates CPI. Yes, people will borrow more as a result of rate cuts and no doubt theyʻll need to, to compete with other borrowers who will drive up prices in a bid war. But make no mistake, the Fed is still sitting on 4 trillion in bonds.
 
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