2024 Trading Thread - Page 13 - Business, Finances and Investing Forum

Inflation keeps going down .
Having a high real interest rates for no reason while government makes huge deficit isnt a good idea usually .

I’m not saying it’s a good decision on both stance but that is what’s happening .

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09-19-2024 , 03:08 PM

#303

pocket_zeros

Pooh-Bah

Join Date: Jun 2008 Posts: 4,642

Quote:

Originally Posted by jefkve

Interesting tweet, and good point from the former head of PIMCO. If the economy is in such a good spot, why lower rates by 50bps???

Because the Fed is supposed to be targeting where the ball will be, not where the ball currently is. The stats and leading indicators show the economy is doing well but heading in the wrong direction, esp the current trend in employment and overdue balances / late payments on consumer debt.

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09-20-2024 , 06:48 AM

#304

phantom_lord

veteran

Join Date: Apr 2006 Posts: 2,614

A bit surprised by IBKR's strength. Is their growth overshadowing the rate cuts?

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09-21-2024 , 01:16 AM

#305

roymunson888

adept

Join Date: Jul 2017 Posts: 993

Quote:

Originally Posted by Maximus122

The debt keeps maturing and we can't afford to pay 5% on it all.

The US debt is 35 trillion and 4.9 trillion is collected in taxes.

If you were you were to pay 5% interest on the whole 35 trillion you would be paying 1.7 trillion in interest on bonds, without paying down the principle which would be 34% of total US tax revenue.

Of course the risk is cuts are a stimulus and they risk inflation re rearing it's ugly head.

Forget stocks, its prolly time to become a bond trader. How long would that take for me to gets good at?

Wonder if that ol vampire Soros is betting against US. Some people might think..... we have 0 intention of paying that all back.

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09-21-2024 , 10:45 AM

#306

Maximus122

adept

Join Date: Jul 2013 Posts: 1,075

Yeah the debt won't be repaid another bond will be sold as another one matures.

And if people don't want to buy bonds issued by the United States then the Fed can print money to buy them all.

That's why Buffett is always bullish on the stock market. He knows that if worse comes to worst it's the dollar that's going to zero not stocks.

https://www.youtube.com/watch?v=Q2om...st=LL&index=28

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09-22-2024 , 12:37 AM

#307

roymunson888

adept

Join Date: Jul 2017 Posts: 993

Nice video, I like the boomer laugh at the end, our credit is good. Sure buddy... One day people will say no thx to lending 20-30 yrs to the ol USA for 5 percent. I try and ignore the news, but the radio in the car got me listening. There were a number of those loafers in congress that said whoever next Pres will be, the debt crisis Will raise its head in the next 4 years. So people are aware, this is a problem now, not later. Bond market will prolly swing around.

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09-22-2024 , 12:50 AM

#308

smartDFS

veteran

Join Date: Feb 2015 Posts: 2,213

Quote:

Originally Posted by roymunson888

Forget stocks, its prolly time to become a bond trader. How long would that take for me to gets good at?.

Quote:

Originally Posted by roymunson888

One day people will say no thx to lending 20-30 yrs to the ol USA for 5 percent. I try and ignore the news, but the radio in the car got me listening. There were a number of those loafers in congress that said whoever next Pres will be, the debt crisis Will raise its head in the next 4 years. So people are aware, this is a problem now, not later. Bond market will prolly swing around.

Spoiler:

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