Obama just got re-elected

#26
#26
How's this going to cause the cash on the sidelines to come into the game?
The cash on the sidelines came in yesterday when people realized that they would get about a zero percent return in the bond market since interest rates will not go up for the next two years. Today, all of that money is being wiped out. Unless the market has a wild rally in it, the sidelines are nearing empty except for the handful of multinationals that are cash heavy, like Apple and Exxon.
 
#27
#27
The cash on the sidelines came in yesterday when people realized that they would get about a zero percent return in the bond market since interest rates will not go up for the next two years. Today, all of that money is being wiped out. Unless the market has a wild rally in it, the sidelines are nearing empty except for the handful of multinationals that are cash heavy, like Apple and Exxon.

Oh, I wasn't expecting an actual response to my answer.....

:ermm:
 
#28
#28
I thought all was going to be sunshine and lollipops since the announcement yesterday. Obama gonna be pizzed
 
#31
#31
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#32
#32
have we had an interest rate hike since 2008?

nope.

what LG fails to not realize is that the fed saying they wont raise rates for 2 years is basically admitting the economy will be in the crapper for the rest of obama's term.
 
#33
#33
nope.

what LG fails to not realize is that the fed saying they wont raise rates for 2 years is basically admitting the economy will be in the crapper for the rest of obama's term.


I completely realize that. But by guaranteeing such low rates, they've assured people and businesses of borrowing opportunities that should allow for both an increase in demand and an increase in capacity.

Seems like normally we are trying to juggle both, tweaking one against the other. But this move seems designed to prime the pump for both.

Should lead to rapid acceleration in GDP. May not be in full swing until second or third quarter next year, but that's perfect for Obama.
 
#34
#34
as joe said. we've had rates low for years now. why is this going to make a difference? pushing on a string.
 
#35
#35
I completely realize that. But by guaranteeing such low rates, they've assured people and businesses of borrowing opportunities that should allow for both an increase in demand and an increase in capacity.

Seems like normally we are trying to juggle both, tweaking one against the other. But this move seems designed to prime the pump for both.

Should lead to rapid acceleration in GDP. May not be in full swing until second or third quarter next year, but that's perfect for Obama.

it doesn't matter how low or for how long the rates are, the regulatory maze created by Dodd-Frank is still going to have a wet blanket effect on small business lending and thus job creation.
 
#36
#36
it doesn't matter how low or for how long the rates are, the regulatory maze created by Dodd-Frank is still going to have a wet blanket effect on small business lending and thus job creation.

dimon said the exact same thing on cnbc today.
 
#37
#37
as joe said. we've had rates low for years now. why is this going to make a difference? pushing on a string.


Aren't you guys the ones saying that what is really needed is confidence in how the future of finance is going to play out?

This is a fairly dramatic step in the direction of stability, it would seem.



it doesn't matter how low or for how long the rates are, the regulatory maze created by Dodd-Frank is still going to have a wet blanket effect on small business lending and thus job creation.

dimon said the exact same thing on cnbc today.

You are both right, and of course I would expect the business community and the reporters that cover them to say so. However, it is rather apparent at this point in time that the interest of many commentators in trying to oust a person they don't like politically -- Obama -- is trumping their role to report on what's going on out there in the real world.

Rick Santelli is a perfect example. His schtick is getting old.
 
#38
#38
Aren't you guys the ones saying that what is really needed is confidence in how the future of finance is going to play out?

This is a fairly dramatic step in the direction of stability, it would seem.

You are both right, and of course I would expect the business community and the reporters that cover them to say so. However, it is rather apparent at this point in time that the interest of many commentators in trying to oust a person they don't like politically -- Obama -- is trumping their role to report on what's going on out there in the real world.

Rick Santelli is a perfect example. His schtick is getting old.

Wha???
 
#39
#39
Aren't you guys the ones saying that what is really needed is confidence in how the future of finance is going to play out?

This is a fairly dramatic step in the direction of stability, it would seem.

You are both right, and of course I would expect the business community and the reporters that cover them to say so. However, it is rather apparent at this point in time that the interest of many commentators in trying to oust a person they don't like politically -- Obama -- is trumping their role to report on what's going on out there in the real world.

Rick Santelli is a perfect example. His schtick is getting old.

i don't think anyone would think that the fed wouldn't keep rates low if the economy was lousy.

dimon not only is a flaming democrat, but he campaigned for obama. you couldn't be more off base.
 
#40
#40
i don't think anyone would think that the fed wouldn't keep rates low if the economy was lousy.

dimon not only is a flaming democrat, but he campaigned for obama. you couldn't be more off base.

Imagine that. LG is off base.
 
#41
#41
i don't think anyone would think that the fed wouldn't keep rates low if the economy was lousy.

dimon not only is a flaming democrat, but he campaigned for obama. you couldn't be more off base.


You are full of crap.

How Obama and Dimon Drifted Apart - NYTimes.com

Dimon and Obama long ago split on this issue. Dimon is pissed because Obama won't let his bank get away with the shenanigans anymore.

Cry me a friggin river.
 
#42
#42
wait so obama's policies made him dislike an administration that he formally supported with time and money and you say his opposition is politically motivated? whaa?
 
#44
#44
nope.

what LG fails to not realize is that the fed saying they wont raise rates for 2 years is basically admitting the economy will be in the crapper for the rest of obama's term.


Just caught that. I failed to not realize it.
 
#47
#47
LG, you have yet to address the liquidity issues that are being driven by bank equity problems and the FDIC killing community banks when they lend.
Posted via VolNation Mobile
 
#48
#48
Gallup: Obama job rating sinks below 40% for first time - latimes.com

President Obama's summer woes have dragged his approval rating to an all-time low, sinking below 40% for the first time in Gallup's daily tracking poll.

New data posted Sunday shows that 39% of Americans approve of Obama's job performance, while 54% disapprove.
Both are the worst numbers of his presidency.

It makes you wonder how smart Obama really is.
 
#49
#49
I completely realize that. But by guaranteeing such low rates, they've assured people and businesses of borrowing opportunities that should allow for both an increase in demand and an increase in capacity.

Seems like normally we are trying to juggle both, tweaking one against the other. But this move seems designed to prime the pump for both.

Should lead to rapid acceleration in GDP. May not be in full swing until second or third quarter next year, but that's perfect for Obama.

FRB: H.3 Release--Aggregate Reserves of Depository Institutions--August 11, 2011

Current bank reserves are off the chart. Remember, the Fed rate is what banks have to pay to get money. Why do they need to get more money from the Fed in order to lend? Simply put, they don't. They are sitting on their reserves and have been and will continue to. There are many reasons for this, but one big reason is that banks are now receiving interest on money held in reserve from the govt. (FAQs about Interest on Reserves and the Implementation of Monetary Policy - Federal Reserve Bank of New York)

Most major corporations are also sitting on capital. The uncertainty created by various new laws and regulations are causing companies to hold onto their cash or convert it into a more 'real' form.

If banks have tremendous capacity to be loaning before this announcement, what part of this announcement will lead them to loan more? Since the prime rate is determined by the fed rate, if the fed rate is too low, then banks can make a better return by using their reserves on options other than lending. Since the best borrowers (large corps) are money flush right now, that only leaves the less credit-worthy, and therefore more risky, borrowers in the market. The risk of lending to these customers is not enough to compensate for the low rate of return. Again, it is safer to keep reserves in other investment vehicles.

Just my two cents.
 
#50
#50
No rate increase for two years. Economy Is going to take off.

LOL! The Fed announced that it was holding rates where they are for 2 years because the Fed knows that the economy is swirling around the toilet bowl and is about to get flushed.
 

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