Trump Domestic Policy - Budgets, etc

[QMany]

If our economy is in great shape, why is the Federal Reserve cutting rates?
 

Quote

 

The last time the Fed cut rates was in December 2008, when unemployment was over 7 percent (and rising quickly), the stock market had lost a third of its value, and a major financial institution, Lehman Brothers, had just declared bankruptcy, rocking the financial system.

 

 

 

 

EDIT: Ohhh...

 

[Danny Bateman]

1 hour ago, QMany said:

If our economy is in great shape, why is the Federal Reserve cutting rates?
 

 

EDIT: Ohhh...

 

 

Can someone who understands economics better than me help me understand this - I'm a bit of a novice here.

 

Typically the Fed raises interest rates to prevent a good economy from "overheating" and to try to curb inflation. They slash rates to help stimulate a sluggish economy.

 

That's pretty simplistic, but is that right?

[BigRedBuster]

1 hour ago, Danny Bateman said:

 

Can someone who understands economics better than me help me understand this - I'm a bit of a novice here.

 

Typically the Fed raises interest rates to prevent a good economy from "overheating" and to try to curb inflation. They slash rates to help stimulate a sluggish economy.

 

That's pretty simplistic, but is that right?

As you said, it's very simplistic.  But, in general, you are correct.  There are lots of other factors that play into it also though.  I haven't read enough about this rate cut to fully understand where they are coming from.  However, this economy hasn't been as advertised for quite some time.  I believe the feds are just now starting to see that in their data (which is always delayed).  There's a chance they are more concerned than what they are letting on publicly.

The interesting thing is that Trump has ridiculed the feds for their rate hikes...claiming that's why the stock market has struggled the last 20 or so months.  So....now they lowered rates and the market went down quiet a bit yesterday.  Today it rebounded.....till he announced more tariffs and now its down again.

 

Gee....wonder what is having a bigger factor on the piss poor stock market.

 

During good times, the feds should raise interest rates to do what you said "prevent a good economy from "overheating" and to try to curb inflation."  But, they also should do it to be prepared for when they need to lower them in a bad time.  

There's a chance that the economy has ended it's long bull market/economy by simply having a soft landing and mellowing out for a bit.  If that's the case....that's a good thing and it will eventually take off again.  Hopefully that's the case. But...you know.....I thought we were supposed to have 5% growth by now.

 

Sorry for the rambling answer.

[knapplc]

 

[commando]

guess we lost the trade war

 

 

[TGHusker]

57 minutes ago, commando said:

guess we lost the trade war

 

 

what an idiot  

[QMany]

On 7/26/2019 at 8:50 AM, BigRedBuster said:

This is exactly right.

 

From the CNN article above:

 

"I think the bottom-line takeaway is we are appreciative of this, but farmers have borne a significant price in this trade war," Brian Duncan, vice president of the Illinois Farm Bureau, told CNN. 

 "No matter what the payments are here, they are not going to make up for the generational damage that's being done. Once trade routes get changed, they don't change back -- that's the real rub here," Duncan added.

 

" 'I never thought leopards would eat MY face,' sobs woman who voted for the Leopards Eating People's Faces Party."

[Moiraine]

18 hours ago, commando said:

guess we lost the trade war

 

 

 

 

 

No Donald, we wouldn’t. It’s great that the president still doesn’t understand the basics of trade.

[BigRedBuster]

 

[RedDenver]

 

[BigRedBuster]

2 hours ago, RedDenver said:

 

I really don’t like how some are trying to pit large farmers against small farmers. 

 

I have friends who are pretty big farmers. I manage relatively a very small amount of farm land. I would have lost money last year if it weren’t for this payment. That’s not a devastating issue because farming is not my main job. 

 

Contrast that with my friends who also would have lost money and it’s their livelihood. 

 

The issue needs to be about Trumps pathetic trade wars that cause the need for this...... Not pitting farmers against each other. 

 

Oh.....and getting farmers to realize They should not vote for Trump no matter how big they are. 

[knapplc]

Nobody is trying to pit farmers against each other. Not sure why that would be a takeaway from that tweet.

 

¯\_(ツ)_/¯

[BigRedBuster]

1 hour ago, knapplc said:

Nobody is trying to pit farmers against each other. Not sure why that would be a takeaway from that tweet.

 

¯\_(ツ)_/¯

Maybe my wording is a little strong. 

 

But, the point obviously is to split up farms based on size with no context behind the info. 

 

My post is to point out that there is a lot more to that than farm size. I could be a very small farm and the trade crap has much less affect on me than a very large farm. 

 

With no context....it’s nothing more than political fodder. 

[knapplc]

4 hours ago, BigRedBuster said:

Maybe my wording is a little strong. 

 

But, the point obviously is to split up farms based on size with no context behind the info.  

 

My post is to point out that there is a lot more to that than farm size. I could be a very small farm and the trade crap has much less affect on me than a very large farm. 

 

With no context....it’s nothing more than political fodder. 

 

For sure. Farms with higher base income would need more "aid" to stay afloat.

 

But with Trump's track record, a heaping dose of skepticism is appropriate.

[BigRedBuster]