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Dow 26,000:


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  • Platinum Contributing Member
16 hours ago, revkevsdi said:

So the market was being helped along by quantitive easing in both Obama and Trump’s time. Yet it appears to have stopped working.  Record high deficits and the market is losing steam. 

Wrong.   They changed course to quantitative tightening at the end of Obama's term.   They also started bumping interest rates then but just at the end.   The enthusiasm for Trump's win (and more so good economic numbers and earnings releases)  caused a surge for a little over a year.   Now the market is settling into those FED actions.   Question is what is the bottom.  

Do some research if you don't know the details of QE before commenting.  

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39 minutes ago, Highmark said:

Wrong.   They changed course to quantitative tightening at the end of Obama's term.   They also started bumping interest rates then but just at the end.   The enthusiasm for Trump's win (and more so good economic numbers and earnings releases)  caused a surge for a little over a year.   Now the market is settling into those FED actions.   Question is what is the bottom.  

Do some research if you don't know the details of QE before commenting.  

I’ve always considered artificially low interest rates to be part and parcel of quantitative easing. Granted they aren’t  still buying up bonds and printing money but low interest rates still stimulate the stock market and economy. 

I guess it depends on what you call normal interest rates. I think it’s difficult to know what a normal rate is but I think they are still low  

 IMO if the rates hit 6-7% housing and stocks are fucked. In the late 70’s /early 80’s people bragged about  mortgages at those rates. 

It’s difficult to imagine what would happen if those rates came back let alone 10%

What with government debt at all levels being so high, I doubt the politicians would let it happen.  

 

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8 minutes ago, revkevsdi said:

I’ve always considered artificially low interest rates to be part and parcel of quantitative easing. Granted they aren’t  still buying up bonds and printing money but low interest rates still stimulate the stock market and economy. 

I guess it depends on what you call normal interest rates. I think it’s difficult to know what a normal rate is but I think they are still low  

 IMO if the rates hit 6-7% housing and stocks are fucked. In the late 70’s /early 80’s people bragged about  mortgages at those rates. 

It’s difficult to imagine what would happen if those rates came back let alone 10%

What with government debt at all levels being so high, I doubt the politicians would let it happen.  

 

Paper route money was good in a gic @20%.  Sorry but there won't be any repeats anytime soon.

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  • Platinum Contributing Member
15 minutes ago, revkevsdi said:

I’ve always considered artificially low interest rates to be part and parcel of quantitative easing. Granted they aren’t  still buying up bonds and printing money but low interest rates still stimulate the stock market and economy. 

I guess it depends on what you call normal interest rates. I think it’s difficult to know what a normal rate is but I think they are still low  

 IMO if the rates hit 6-7% housing and stocks are fucked. In the late 70’s /early 80’s people bragged about  mortgages at those rates. 

It’s difficult to imagine what would happen if those rates came back let alone 10%

What with government debt at all levels being so high, I doubt the politicians would let it happen.  

 

Rates were at least double 6-7% in the late 70's early 80's.   I purchased my first home in 1994 and got 6.875% on a 15 year.   My banker told me it was the first loan he'd ever written under 7% and he had been banking for a long time.

My business sweep account use to draw 5-6%+ in the early 2000's.  

We've had strong economic times in the past with interest rates much higher than they are now.   

If rates hit 6-7% there will be some temporary pain no doubt.   Not a chance that happening now.   With QT going on rates will be cut if we see 3 quarters in a row of negative growth.   

I agree govt debt contributes to keeping rates low. 

Part of me yearns for 18% interest on loans because it means strong double digits for savings accounts and/or CD's.  Yes chances are inflation is sky high but sit back a few years and only purchase what you need and let your cash do the rest.  

Edited by Highmark
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6 minutes ago, Highmark said:

Rates were at least double 6-7% in the late 70's early 80's.   I purchased my first home in 1994 and got 6.875% on a 15 year.   My banker told me it was the first loan he'd ever written under 7% and he had been banking for a long time.

My business sweep account use to draw 5-6%+ in the early 2000's.  

We've had strong economic times in the past with interest rates much higher than they are now.   

If rates hit 6-7% there will be some temporary pain no doubt.   Not a chance that happening now.   With QT going on rates will be cut if we see 3 quarters in a row of negative growth.   

I agree govt debt contributes to keeping rates low. 

Part of me yearns for 18% interest on loans because it means strong double digits for savings accounts and/or CD's.  Yes chances are inflation is sky high but sit back a few years and only purchase what you need and let your cash do the rest.  

How much longer can RevBeta sit back and let his money do nothing?  

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1 hour ago, Highmark said:

Wrong.   They changed course to quantitative tightening at the end of Obama's term.   They also started bumping interest rates then but just at the end.   The enthusiasm for Trump's win (and more so good economic numbers and earnings releases)  caused a surge for a little over a year.   Now the market is settling into those FED actions.   Question is what is the bottom.  

Do some research if you don't know the details of QE before commenting.  

The bottom is 14,000

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8 hours ago, Highmark said:

Rates were at least double 6-7% in the late 70's early 80's.   I purchased my first home in 1994 and got 6.875% on a 15 year.   My banker told me it was the first loan he'd ever written under 7% and he had been banking for a long time.

My business sweep account use to draw 5-6%+ in the early 2000's.  

We've had strong economic times in the past with interest rates much higher than they are now.   

If rates hit 6-7% there will be some temporary pain no doubt.   Not a chance that happening now.   With QT going on rates will be cut if we see 3 quarters in a row of negative growth.   

I agree govt debt contributes to keeping rates low. 

Part of me yearns for 18% interest on loans because it means strong double digits for savings accounts and/or CD's.  Yes chances are inflation is sky high but sit back a few years and only purchase what you need and let your cash do the rest.  

What meant is the 6-7% rates that were left on 25 year mortgages from the 60’s were sought after in the early 80’s

I wonder how many people could afford to pay 6% on their mortgages now. 

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37 minutes ago, revkevsdi said:

What meant is the 6-7% rates that were left on 25 year mortgages from the 60’s were sought after in the early 80’s

I wonder how many people could afford to pay 6% on their mortgages now. 

People will always find a way to royally screw themselves over, no matter.

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12 hours ago, ArcticCrusher said:

People will always find a way to royally screw themselves over, no matter.

Like buying into stock market bubbles, real estate bubbles and voting Republican?

Edited by revkevsdi
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17 minutes ago, Polaris 550 said:

This is not a correction, this is not a sell-off, this is basically the market tanking. 

It's a bear market and will be for a couple years......it happens

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3 minutes ago, f7ben said:

It's a bear market and will be for a couple years......it happens

Yup, I saw this before in 2007. Disaster. No other way to put it. I'm too fukken old to wait out another 10 years.

Thank God, I live like a street bum, and have more shit than I can ever use. ( hunting, fishing, tools, equipments, truck, plows, cars, etc. )    

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