Results of FED indecision

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bumper
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Results of FED indecision

Post by bumper » September 20, 2015, 4:16 pm

http://www.bloomberg.com/news/articles/ ... fed-policy

It's like they have to take us to cliff. The U.S. FED is not the IMF. The truth is a .25% raise ain't going to break the bank. But, here we sit playing the D FED game again. What could happen with this the money leaving the Market back into emerging markets. Dollar being driven down again, none of this helps me.

If money comes back here I see the bubble getting bigger here and I don't believe that benefits Thailand either


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parrot
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Results of FED indecision

Post by parrot » September 21, 2015, 10:58 pm

Paul Krugman weighs in on the Fed decision.......and why it was the right thing to do.

There have been howls of fiscal calamity, collapse of the dollar, hyper inflation, and demise of the stock market for years.......because of low interest rates. So far, there's no supportive evidence that that's the case.......unless you believe the pundits and extremists.
http://www.nytimes.com/2015/09/21/opini ... nkers.html

bumper
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Results of FED indecision

Post by bumper » September 22, 2015, 4:50 pm

My thoughts ,25 % won'l change the world. But, it might have given some much needed confidence. All the financial institution's have factored this is for some time now. I would agree the world is a mess. Nothing the FED does will change that.

Are the banks back to lending I have no idea. Are the Stock Market's in bubble territory you bet all around the world.

China weak I don't think so, the rest of the world will kill for 7%

Will we have another recession of course we always do.

Anyway they could have raised it ,25% and from what I can pretty much in split on the vote.

Sometimes inaction can be bad.
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waanjai
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Results of FED indecision

Post by waanjai » September 22, 2015, 5:58 pm

I don't agree with Krugman. As he forgets a still growing segment in many Western countries: Those that have to save money for their old age retirement. Many pensions and related systems are not paying enough due to periods of unemployment during their occupatonal life time. They need to save and do not want to speculate.

But banks all over the world are ony giving lousy interest rates to these people. These are no bankers, these are common people. Krugman seems to believe that people approaching their 60ies should make a debt and don't pay back but declare bankrupty when finishing to work. Just like the Greeks intended to do which he advised.

A steadily growing older population in many nations needs reliable and sustainable interest rates again!

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Results of FED indecision

Post by Jing Jing » September 22, 2015, 7:00 pm

According to some economist the Fed is now taking into consideration global economics. The have expanded their analysis from US monetary policy to what impact their decisions will have on the global econmy. Raising rates would affect loans in EM coutries that are denominated in USD. EM economies would further contract and USD would strengthen. A strong dollar would adversely affect the US and other DM countries. So one of the supposed new goals of the Fed rate increase is the effect on FX.

It seems the Fed is now unable to extricate the US monetary policy from the adverse affects of a global banking system. Due to its inability to restore the system to a more normal state the bubble gets bigger.

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Results of FED indecision

Post by bumper » September 23, 2015, 12:09 pm

That is the crux of the problem to me. They are not mandated to control the world economy We have the IMF for that sort of thing.

If you look at today you will see all the markets in the RED the baht at 36.14. So was their inaction correct I don't think so. They sent the wrong message and that is what we are really talking about. .25% that's not even a bump in the road.

China's PMI down yep, still better then the rest of the world.

Would a message of confidence made a difference I guess we will never know now. There so much emotion involved in economies, facts are easily distorted.

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