Submitted by uslvdslv t3_1267vz6 in wallstreetbets
thawingSumTendies t1_je82a2m wrote
Low interest rates only helps people and corporations spend money that they don’t have.
Growth should come organically and not be fuelled by debt.
Interest rates should remain high even if inflation subsides.
TedMerTed t1_je86n8i wrote
The Fed will cut rates only when they realize they have done too much. How will this be good for the stock market?
H0lland0ats t1_je8gyfh wrote
This will come as a big surprise to you but the Feds mandate isn't "pump the stock market with cheap debt so WSB user TedMerTed can get free money".
The Feds only real job is manage inflation and employment from a macroeconomic level. Everything else should be coming from congress.
The vast majority of the "growth" the past decade has been finacialization. Companies have borrowed like never before in history to buy back shares, and take advantage of QE to its max. Very few companies are truly innovating and the ones that are, are doing it so incredibly inefficiently.
Bring back the evolutionary pressure of high rates. Last time they actually started making decent American cars again!
[deleted] t1_je8j8t0 wrote
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GreedyGuard2660 t1_je8s9np wrote
I don't know for a fact, but i suspect this is why IPOs often take a massive shit shortly after. Seed/angels are like the shoddy house flippers of the so called innovation world. This is why the GameStop thing got the police baton so quickly. They don't want it a lot of visibility on the extent to which human civilization is a pump and dump scheme
I once had the opportunity to meet a bunch of actual angel investors. They obviously weren't unintelligent, but they seemed like dunces. They barely, barely cared about the actual pitches. They cared about "we are a blabla bullshit buzzword company, here is an financial modeling excel template up & right." It was fucking eye opening.
[deleted] t1_jea5fie wrote
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The_Other_Neo t1_je8yi6a wrote
Maybe (but not holding my breath for this) the Fed has finally learned its lesson about low interest rates: A Fed Study Shows Loose Monetary Policy Leads to Disaster and Financial Crisis
>A Fed study shows the obvious. But Fed presidents never believe the few studies that ever make any sense.
rjsheine t1_je8pslg wrote
Good for the stock market? Lmao that’s not the Fed’s job
TedMerTed t1_jea6c3m wrote
The comment was towards people that think a fed pivot is a good thing. Not a comment as to the purpose of the Fed.
Duckboy_Flaccidpus t1_jeectdn wrote
Isn't a terminal rate of 5.5% peanuts compared to what it's been historically the last 50 years? I see this as a stabalizing rate, no more free money circulating and should weed out non-robust businesses.
SteveG199 t1_je8x8ya wrote
Furthermore, Interest rates should just be negotiated by markets. But now humans are back on the wheel. And you can't complain they turn that weel to steer away from the saw that would saw off their own branch. The things take the turn any fiat system in history took and you can't blame anybody in charge for not doing the right thing, because that would mean a ruined career. Anybody who does that on stages like this is just instantly replaced by somebody pretending again that they did nothing wrong and people return to standing ovations. The US constitution basically had it right but the system found it's way around it and now you pay. Inb4 murica im from europe
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