This is problem, because the last times rates were this low, banks were borrowing money in order to invest in the market...not loan out. With removing any ratios on the banks, the potential for an anything goes approach is very real.
I remember being in a conference in NYC and a banker predicting the markets would hit 18k. When queried based on what fundamentals was the prediction being made, he basically shrugged and said that’s the trajectory. There was no reason for the market to reach 18k, let alone 27k. But when the savings accounts pay next to nothing, it’s better to make something on it, so people went to stocks.
I just see bigger problems on the horizons with this move.
This is problem, because the last times rates were this low, banks were borrowing money in order to invest in the market...not loan out. With removing any ratios on the banks, the potential for an anything goes approach is very real.
Exactly. Shut down the markets for a couple weeks and let the Wu Flu blow through the country. No reason to give the banksters free money when they will just use it to manipulate the markets.
I think the “Stock market prices” we’ve seen ARE the Inflation..
Half are crowing that the Fed has lost all control and we're in for a Great Depression, a couple have noticed that the heads of the top backs announced that effective immediately they were going to cease their share buy-backs and start lending.
Little noticed is that Mnuchin and Trump suggested restructuring the entire 22 T Federal deficit into 100-year bonds at 1%.
I remember being in a conference in NYC and a banker predicting the markets would hit 18k. When queried based on what fundamentals was the prediction being made, he basically shrugged and said that’s the trajectory. There was no reason for the market to reach 18k, let alone 27k. But when the savings accounts pay next to nothing, it’s better to make something on it, so people went to stocks.