Fed says growth pause temporary, keeps up stimulus

Originally posted by unityemissions
reply to post by 1nquisitive

 

So basically, too simple of a mind to make the connections.

Check.

The stock market doesn't drive consumer prices. There are other factors too.

If what you assert is correct then you'll be able to explain why a drop in market indexes will drive up the price of, let's say, a can of coke.

Originally posted by unityemissions
reply to post by 1nquisitive

 

I would, but the futures market killed her long ago.

Such a tragedy

edit on 30-1-2013 by unityemissions because: (no reason given)

Stocks and futures are different instruments.

Originally posted by 1nquisitive

The stock market doesn't drive consumer prices. There are other factors too.

I never said they "drive" consumer prices. I said the two can't be entirely separated. If you manipulate the stock market, you influence the consumer prices.

If what you assert is correct then you'll be able to explain why a drop in market indexes will drive up the price of, let's say, a can of coke.

edit on 30-1-2013 by 1nquisitive because: typo

You prove my point.

Originally posted by 1nquisitive

Originally posted by Aloysius the Gaul
your headline is not thesame as the article you have linked to - the article makes no metnion of any "artificial" interest rate levels at all.

How would higher interest rates be of benefit?

Refer to my post above.

ther is nothing of substance in yuor posts - they are repeats of articles that explain the Banks thinking and why this is actually a good thing.

A higher rate would encoursge more savings deposits.

Indeed - insofar as that is a good thing.

However it is not a cure on its own in an ailing economy - a good level of savings is a sign of a healthy economy, and the US also requires investment in productive industry at least as much, or probably moreso, than simply savings.

There aer already billions in retirement accounts, for example.

Originally posted by Aloysius the Gaul

Originally posted by 1nquisitive

Originally posted by Aloysius the Gaul
your headline is not thesame as the article you have linked to - the article makes no metnion of any "artificial" interest rate levels at all.

How would higher interest rates be of benefit?

Refer to my post above.

ther is nothing of substance in yuor posts - they are repeats of articles that explain the Banks thinking and why this is actually a good thing.

A higher rate would encoursge more savings deposits.

Indeed - insofar as that is a good thing.

However it is not a cure on its own in an ailing economy - a good level of savings is a sign of a healthy economy, and the US also requires investment in productive industry at least as much, or probably moreso, than simply savings.

There aer already billions in retirement accounts, for example.

If nobody saves then the banks have no money to lend to firms to invest in capital goods, will they?

But, alas, I repeat for the n'th time, I don't care if rates are either high or low, I only care that they are a true market rate, not an artificially created rate.

reply to post by 1nquisitive


Investing in banks simply puts a middleman between you and productive indsutry - there is this thing called the sharemarket - if you want to invest in productive industry then that is where you should be, not looking for term deposits at your local bank!

US depositers ahve put over $2 Trillion more into banks than Banks have actually loaned out - if they put that into productive activies it would be better than higher interest rates!

Bank deposits only help bankers!

Originally posted by Aloysius the Gaul
reply to post by 1nquisitive

 

Investing in banks simply puts a middleman between you and productive indsutry - there is this thing called the sharemarket - if you want to invest in productive industry then that is where you should be, not looking for term deposits at your local bank!

US depositers ahve put over $2 Trillion more into banks than Banks have actually loaned out - if they put that into productive activies it would be better than higher interest rates!

Bank deposits only help bankers!

When you buy a share on the stock market the said firm received no money, is. It doesn't benefit directly.

I think you're confused with the bond market.

smoke and mirrors can be dangerous when the house is on fire, don't you all think?


leave it up to the fed to issue even more fairy tales.