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Fed about to raise rates 75 basis points :giggle:

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šŸ˜±

Expected to go upĀ  3.5 before the end of 2023.

Ā 

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On 7/25/2022 at 9:28 AM, lickin_starfish said:

Is this why stocks are so green today? I can't keep up with all the great economic news.

Down bigly since I posted thisĀ  VERY BIGLY

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https://www.yahoo.com/finance/news/federal-reserve-interest-rates-fomc-monetary-policy-decision-july-2022-140540265.html

The Federal Reserve on Wednesday raised interest rates by 0.75% as the central bankĀ attempts to avoid a deep recession.

The decision to move by 0.75% matched the magnitude of theĀ Fedā€™s last move in June, which was its largest single-meeting rate increase since 1994. Wednesday's decision was unanimously agreed upon by voting members of the Federal Open Market Committee.

The Fed has now moved in four consecutive meetings to increase borrowing costs in America, extending its effort to dampen household and business spending. The goal: to wrangle inflation running at rates unseen since the early 1980s.

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4 minutes ago, posty said:

https://www.yahoo.com/finance/news/federal-reserve-interest-rates-fomc-monetary-policy-decision-july-2022-140540265.html

The Federal Reserve on Wednesday raised interest rates by 0.75% as the central bankĀ attempts to avoid a deep recession.

The decision to move by 0.75% matched the magnitude of theĀ Fedā€™s last move in June, which was its largest single-meeting rate increase since 1994. Wednesday's decision was unanimously agreed upon by voting members of the Federal Open Market Committee.

The Fed has now moved in four consecutive meetings to increase borrowing costs in America, extending its effort to dampen household and business spending. The goal: to wrangle inflation running at rates unseen since the early 1980s.

They should try increasing manufacturing to meet demand.Ā 

This current government sucks. Glad I don't have to borrow for anything.Ā 

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3 hours ago, edjr said:

Down bigly since I posted thisĀ  VERY BIGLY

Up bigly with the anoucment, weird.

Ā 

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10 minutes ago, Cdub100 said:

Up bigly with the anoucment, weird.

Ā 

Down more Friday thenĀ up today.Ā 

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34 minutes ago, Cdub100 said:

Up bigly with the anoucment, weird.

Ā 

NASDAQ is going wild to the upside. My gut tells me it's just a bear market rally. Would probably be a good day to sell covered calls.

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2 hours ago, Cdub100 said:

Up bigly with the anoucment, weird.

Ā 

the market hates uncertainty.Ā  once they announced it, uncertainty was removed and the market rallied as investorsĀ thinkĀ the hike is good for economy.

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55 minutes ago, JustinCharge said:

the market hates uncertainty.Ā  once they announced it, uncertainty was removed and the market rallied as investorsĀ thinkĀ the hike is good for economy.

And 75ps was already priced in, that's what was expected for weeks.Ā  Ā 

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everything is going to crash

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4 hours ago, easilyscan said:

NASDAQ is going wild to the upside. My gut tells me it's just a bear market rally. Would probably be a good day to sell covered calls.

NCMI up big league.Ā Ā :shocking:

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18 minutes ago, edjr said:

everything is going to crash

How about helping out your fellow geeksĀ by letting themĀ know when that's going to happen ?

Ā 

Ā 

Ā 

Ā 

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8 minutes ago, RaiderHaters Revenge said:

I truly donā€™t get how raising interest rates helps the economyĀ 

It cools inflation

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13 minutes ago, RaiderHaters Revenge said:

I truly donā€™t get how raising interest rates helps the economyĀ 

It squashes demand. Prices come downĀ 

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11 minutes ago, GutterBoy said:

It cools inflation

This guy knows. Phd in economicsĀ 

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They have to do this because a lot of us have been overspending and wasteful with money.Ā  This should rain that in by slowing down borrowing which I think is what causes inflation.

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46 minutes ago, shorepatrol said:

It squashes demand. Prices come downĀ 

I still donā€™t see how. Prices come down on houses but your payment is still high

2.5 on a 600k house is better than 6.5 on 500k house

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7 hours ago, RaiderHaters Revenge said:

I still donā€™t see how. Prices come down on houses but your payment is still high

2.5 on a 600k house is better than 6.5 on 500k house

Its more than just housing.

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Its an art.Ā  Economic policy is not easy.Ā  There are no right or wrong answers.Ā  We lowered rates for years to spur growth.Ā  It was inevitable we had to raise them once inflation proved to be non transitory.Ā  Is it going to "fix" everything? No.Ā  There is no "fix everything" button, but it is needed right now.Ā  The art is raising rates enough to lower inflation yet not too much where it stifles growth.

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You think this sucks? Wait til that tax and spending on green energy bill that Manchin agreed to takes hold. Liberals can't run anything properly. Get used to socialism. Venezuela here we come.

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11 minutes ago, GutterBoy said:

Its an art.Ā  Economic policy is not easy.Ā  There are no right or wrong answers.Ā  We lowered rates for years to spur growth.Ā  It was inevitable we had to raise them once inflation proved to be non transitory.Ā  Is it going to "fix" everything? No.Ā  There is no "fix everything" button, but it is needed right now.Ā  The art is raising rates enough to lower inflation yet not too much where it stifles growth.

You call it art, I call it theft.

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29 minutes ago, GutterBoy said:

Its an art.Ā  Economic policy is not easy.Ā  There are no right or wrong answers.Ā  We lowered rates for years to spur growth.Ā  It was inevitable we had to raise them once inflation proved to be non transitory.Ā  Is it going to "fix" everything? No.Ā  There is no "fix everything" button, but it is needed right now.Ā  The art is raising rates enough to lower inflation yet not too much where it stifles growth.

The housing market needed a major correction and the rate hikes have helped, no doubts there. We will see what the fyootah holds...

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2 hours ago, GutterBoy said:

Its an art.Ā  Economic policy is not easy.Ā  There are no right or wrong answers.Ā  We lowered rates for years to spur growth.Ā  It was inevitable we had to raise them once inflation proved to be non transitory.Ā  Is it going to "fix" everything? No.Ā  There is no "fix everything" button, but it is needed right now.Ā  The art is raising rates enough to lower inflation yet not too much where it stifles growth.

the scary truth is they know exactly how to fix it but refuse to do it.

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6 minutes ago, JustinCharge said:

the scary truth is they know exactly how to fix it but refuse to do it.

Who knows?Ā  What is the fix?

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2 minutes ago, JustinCharge said:

already said on this board.

So you want me to read every post until I find it, or can you just say it again?

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6 minutes ago, GutterBoy said:

So you want me to read every post until I find it, or can you just say it again?

just do what they did to fix the 1970s inflation.

1.Ā  massive rate hike to kill the immediate inflation problem.Ā  that isnt enough tho because when the economy rebounds, inflation will just return.

2.Ā  they also created the 401k and discount brokerages to break consumers inflation mindset of buy buy buy. people with disposable income started putting it into the stock market instead of wild spending because of the lucrative deals of the 401k and ease of access of discount brokerages.

Ā 

we fix it by crashing the economy again and alsoĀ offering some NEW lucrative investment vehicle that modern consumers care about.Ā  im not saying it has to be another 401k.Ā  could be anything.Ā  it just has to divert the consumer from intense demand for goods and services.Ā  break the inflation mindset.

Ā 

but instead of wading into the weeds, its probably better to say "we obviously fixed the 1970s inflation and we can fix our current inflation problem doing the exact same things.Ā  we simply are not doing it, which is scary."

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I feel like mine is a 201k as it's been cut in half it feels like

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13 hours ago, edjr said:

everything is going to crash

Right after we rocket to new highs. They will have to reverse course on rates.

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in discussing inflation and how to fix it with people, i found i actually had to add the bit where it doesnt have to be a second 401k, because everyone seemed to assume that was what i meant lol.Ā  it could be any investment vehicle you can imagine.Ā  but sometimes people interrupt me to jump in and say "oh you mean a secondĀ 401k!"Ā  its really strange.Ā  the more you talk with people, the more they all seem to think exactly the same.

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4 hours ago, JustinCharge said:

offering some NEW lucrative investment vehicle that modern consumers care about.Ā  im not saying it has to be another 401k.Ā  could be anything.Ā  it just has to divert the consumer from intense demand for goods and services.Ā  break the inflation mindset.

Ā 

You're talking about Bitcoin and other cryptos....

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1 minute ago, Cdub100 said:

You're talking about Bitcoin and other cryptos....

I think he's talking about investments, not swindles where people lose all their money.

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On 7/27/2022 at 3:31 PM, easilyscan said:

NASDAQ is going wild to the upside. My gut tells me it's just a bear market rally. Would probably be a good day to sell covered calls.

The fed removed guidance for future hikes.Ā  That's why we rallied

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experts predict that we're in for another three rate hikes by early 2023

Ooof...Ā Ā 

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