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Hey guys. Negative Interest rates are coming!

Posted: Tue Mar 08, 2016 7:16 pm
by Namrok
I'm actually not sure if they are coming to the US or not. But I imagine we'll get locked into a currency war where the Fed feels it has to resort to them at some point. Shit, even without a currency war, we might get dragged into it from other countries begging the Fed to join them in misery, to try to lift the world out of an economic depression. Unless there is some serious regime change at the Fed that is.

Anybody actually think it will happen here? Doing anything to prepare for it?

Re: Hey guys. Negative Interest rates are coming!

Posted: Tue Mar 08, 2016 11:00 pm
by TheDeamon
I think most people who are concerned about such things have already long since done something.

About all you can do is sink your money into things you can reasonably expect to "float" above the problem(certain stocks), or put it into tangible assets that are unlikely to lose value although most of those seem to be in a bubble(because of everyone seeking financial shelter under their proverbial umbrella) of their own currently which can make them rather hazardous too.

Edit to add: I'm just hoping to see a Republican President + Republican Congress happen so that a lot of the accumulated liquidity so many people and businesses are setting on sitting on currently gets released back into the market. Obama has been positively toxic in that regard, he creates too much uncertainty in the market for most businesses to feel comfortable throwing money around for fear he'll do something to them.

Re: Hey guys. Negative Interest rates are coming!

Posted: Wed Mar 09, 2016 9:50 am
by Rotten
Namrok wrote:I'm actually not sure if they are coming to the US or not. But I imagine we'll get locked into a currency war where the Fed feels it has to resort to them at some point. Shit, even without a currency war, we might get dragged into it from other countries begging the Fed to join them in misery, to try to lift the world out of an economic depression. Unless there is some serious regime change at the Fed that is.

Anybody actually think it will happen here? Doing anything to prepare for it?
Don't see why. The last job reports was relatively good.

Re: Hey guys. Negative Interest rates are coming!

Posted: Wed Mar 09, 2016 2:22 pm
by Namrok
Rotten wrote:
Namrok wrote:I'm actually not sure if they are coming to the US or not. But I imagine we'll get locked into a currency war where the Fed feels it has to resort to them at some point. Shit, even without a currency war, we might get dragged into it from other countries begging the Fed to join them in misery, to try to lift the world out of an economic depression. Unless there is some serious regime change at the Fed that is.

Anybody actually think it will happen here? Doing anything to prepare for it?
Don't see why. The last job reports was relatively good.
Yeah, if you like minimum wage, part time, survive off food stamps jobs.

Re: Hey guys. Negative Interest rates are coming!

Posted: Thu Mar 10, 2016 11:59 am
by Rotten
Namrok wrote:
Rotten wrote:
Namrok wrote:I'm actually not sure if they are coming to the US or not. But I imagine we'll get locked into a currency war where the Fed feels it has to resort to them at some point. Shit, even without a currency war, we might get dragged into it from other countries begging the Fed to join them in misery, to try to lift the world out of an economic depression. Unless there is some serious regime change at the Fed that is.

Anybody actually think it will happen here? Doing anything to prepare for it?
Don't see why. The last job reports was relatively good.
Yeah, if you like minimum wage, part time, survive off food stamps jobs.
Maybe, but the Fed won't see it that way. Not unless the economy craters.

Re: Hey guys. Negative Interest rates are coming!

Posted: Thu Mar 10, 2016 4:57 pm
by TheDeamon
Correct, Fed only cares about the macro level economic factors, micro can goto hell, so long as the macro numbers look good.

Re: Hey guys. Negative Interest rates are coming!

Posted: Thu Mar 10, 2016 5:12 pm
by Namrok
I keep hearing several stories.

Story 1: The fed raises rates because their macro level measures look good, and the economy shits the bed, because it's not ready.

Story 2: The fed ignores their states macro level measures, and instead acts purely to try to boost the stock market, and cuts rates.

Story 3: A combination of the two. The fed sticks to their guns, raises rates, realizes they fucked up, and over reacts.