Drive-By Media Hell-Bent on Talking Us Into a Recession (Nothing but sickening speculations!!!)

Rush Limbaugh.com ^ | August 14, 2019 | Rush Limbaugh

[Pelham]

That’s some dialing. You must be an expert or something.

“A BS statement, particularly in light of the near 0% during the Obama administration. “

Everyone who knows recent economic history is aware that post 2008 rates were done in response to the collapse of the mortgage bubble. Bernanke said it himself. The group that has been paying attention quite obviously doesn’t include you.

“And Greenspan just came out saying there’s nothing preventing a negative yield.”

Well Greenspan no longer gets a vote, and thank God for that considering the Greenspan Put and other bad ideas he implemented. Negative interest rates are harder to implement than having the ability to lower positive rates. Which is why the Fed has a sweet spot for their discount rate, despite your belief that it is BS.

“Whatever metrics supported 2.5%-5% prime rate are clearly not in play anymore and haven’t been for over 10 years. “

Ten years ago was the collapse of the mortgage bubble. We had TARP and Quantitative Easing and near zero rates. That’s over now. Try to stay current.

“It’s not the US rate in a vacuum. It’s the US rate in comparison to the REST OF THE WORLD (ROW).

I never said it was. I don’t address red herring arguments that you choose to make.

” That’s why the ‘recession signal’ inverted yield curve is BS and manufactured by FED high rates vs ROW. “

I’ve posted that inverted curves don’t guarantee a recession and that it probably doesn’t mean one in this instance. So are you agreeing with that? Or does your convoluted sentence have some other meaning? Clarity isn’t your strong point.

The Fed took their rate to 2.5% because they want their primary recession fighting tool back, a discount rate in a range where they have the ability to drop it. And 2.5% is the very bottom of that range.

They have no control over long bond rates. If there’s heavy demand for Treasuries then long rates fall, and currently they are below the discount rate. It makes as much sense to claim that the market “manufactured” the inverted curve.

“This is ripping off the US courtesy of the FED-set bond yields. Got it now?”

Yeah, what I’ve gotten through all of your posts is that you don’t know what you’re talking about, but you make up for it with bad attitude.