Thread: Fed Raises Rate 1/4 pt.

I'm glad this happened

I am & I'm not. I'm buying next year .

Oh well, it's a good sign for the country.

C'mon DG,

You can't expect them to admit "W" policies are working.

Eating crow tastes real bad.

Originally Posted by milliman

C'mon DG,

You can't expect them to admit "W" policies are working.

Eating crow tastes real bad.

Two words: Hoover President.

It's all about net jobs

BTW, how's the deficit going these days?

Originally Posted by redspy

BTW, how's the deficit going these days?

Ouch !

Should come down once the companies start roaring again & profits increase.

Unless W goes on a spending spree, he is part Democrat you know.

I never said everything he did was good. Just better than the alternative.

The U.S. trade deficit is $51.6 billion and the dollar has declined to near a record against the euro.

Lots more work to do....

Here's a quote from the Washington Post:-

The steady worsening in the trade data this year has rekindled fears that the United States is becoming dangerously dependent on foreign investors to the point that it is risking a financial crisis. The hundreds of billions of dollars that Americans spend on imported cars, electronics, clothing and other goods from overseas is effectively borrowed from foreigners, who invest the dollars they receive in U.S. Treasury bonds and other securities. As U.S. indebtedness has risen, so have worries that foreigners might suddenly unload their holdings of U.S. stocks and bonds, sending the dollar -- and financial markets generally -- into a tailspin.

http://www.washingtonpost.com/wp-dyn...2004Nov10.html

Originally Posted by redspy

The U.S. trade deficit is $51.6 billion and the dollar has declined to near a record against the euro.

Lots more work to do....

one step at a time

Originally Posted by busyLivin

one step at a time

Originally Posted by dg806

The latest hike follows Friday's Labor Department report, which showed a surprisingly large increase of 337,000 jobs last month, a reassuring indication of the economy's vigor.
Liberals Please chime in..................

you do release that those numbers are based primarily on the amount of new unemployment claims ? those numbers are meaningless...

Originally Posted by dg806

The latest hike follows Friday's Labor Department report, which showed a surprisingly large increase of 337,000 jobs last month, a reassuring indication of the economy's vigor.
Liberals Please chime in..................

dg308,

I like your posts, but I think the term "liberal" is not very relevant of a term to describe people today. The same goes for "conservative."

These labels are outdates.

Jobs are being added and that's good. The dollars may continue to drop and the Fed may raise rates *more* than 1/4, although I think this additional hike may come in the next meeting, not this one.

China and other countries are storing less greenbacks in their reserves.

Why?

Deficits ---> cause borrowing.

Great, the rate has dropped, what, something like four full points in recents years (I'm guessing)? So they raise it 1/4 of a point. YAY. That's like having a $1600 credit card bill and getting excited about sending in a check for $100.

That said, I'm glad I got my mortgage when I did.

BTW, I am not a liberal.

*Whew* Just got a mortgage at 5.5 I'm seriouly doubting Bush's economic policies given the track record of the last 4 years, but now that we're stuck with him I sure hope I'm wrong.

Quote:
The steady worsening in the trade data this year has rekindled fears that the United States is becoming dangerously dependent on foreign investors to the point that it is risking a financial crisis. The hundreds of billions of dollars that Americans spend on imported cars, electronics, clothing and other goods from overseas is effectively borrowed from foreigners, who invest the dollars they receive in U.S. Treasury bonds and other securities. As U.S. indebtedness has risen, so have worries that foreigners might suddenly unload their holdings of U.S. stocks and bonds, sending the dollar -- and financial markets generally -- into a tailspin.


I fail to see how this is Bush's fault?

Originally Posted by LAM

you do release that those numbers are based primarily on the amount of new unemployment claims ? those numbers are meaningless...

If you have 337,000 less claims than last month, how is this not good news and relevent? Where did they go??

Originally Posted by redspy

The U.S. trade deficit is $51.6 billion and the dollar has declined to near a record against the euro.

Lots more work to do....

This has been true under every administration. Carter, Reagan, Bush I, Clinton . . .

It is not a function of the administration, but the fact that we the consumer can buy stuff from overseas real cheap due to low cost of labor. Look how much stuff you have that says "Made In China". Labor somewhere around $1 per day.

Issue of our dollars going out of this country is true. But foreigners will continue to invest here since we have one of the most stable economies and investment climates in the world. Where else can they invest their cash ?

But how all of this works is way over my head. I remember this argument/concern coming up back in college economics (1981). I got real worried then too. But nothing has happened at all.

Originally Posted by milliman

This has been true under every administration. Carter, Reagan, Bush I, Clinton . . .

It is not a function of the administration, but the fact that we the consumer can buy stuff from overseas real cheap due to low cost of labor. Look how much stuff you have that says "Made In China". Labor somewhere around $1 per day.

Issue of our dollars going out of this country is true. But foreigners will continue to invest here since we have one of the most stable economies and investment climates in the world. Where else can they invest their cash ?

But how all of this works is way over my head. I remember this argument/concern coming up back in college economics (1981). I got real worried then too. But nothing has happened at all.

Where else can they invest their cash? Try looking in the business pages and checking out direct foreign investment in China, India and the Pacific-Rim these days. Europe is a rising economic power with new members joining each year. There are many options in the global economy. A key milestone will be when the oil currency is officially converted to Euro's.

It will still not rival the USA though..............

The British Empire used to feel the same way. Only time will tell.

Originally Posted by dg806

If you have 337,000 less claims than last month, how is this not good news and relevent? Where did they go??

After 6 months you can no longer claim, I imagine that is where some of the claims went.

I have no idea if that is where the data came from or if this means that 337,000 less new claims were made. Either way, measuring job growth this way is statistically retarded.

You can draw for 26 weeks and then re-up and draw another 26 weeks for a year total.

Originally Posted by redspy

Where else can they invest their cash? Try looking in the business pages and checking out direct foreign investment in China, India and the Pacific-Rim these days. Europe is a rising economic power with new members joining each year. There are many options in the global economy. A key milestone will be when the oil currency is officially converted to Euro's.

Red, you are right. Time will tell.

But remember, you are talking about investing an additional 50 Billion or so each month. On top of that, you have expiring treasuries each month or so. All of that needs to be reinvested or parked in a safe secure currrency. Most countries do not even have bond issues that could qualify for this amount of an investment.

Originally Posted by dg806

You can draw for 26 weeks and then re-up and draw another 26 weeks for a year total.

Not if the unemployment rate reaches a certain level, which I believe it has. My buddy went back to school and collected unemployment but he had to drop out after 6 months because the unemployment rate reached 5.5%, at which point they do not allow you to continue your benefit. IMO that is a good thing.

How many of those are temporary reconstruction jobs in Florida? How many are Christmas holiday retail temps?

Originally Posted by redspy

Two words: Hoover President.

It's all about net jobs

BTW, how's the deficit going these days?

Red you are looking at this wrongheaded. This deficit is an investment in foreign interests that will pay handsomely when the Iraqi Oil starts to flow and the rest of the middle east has to drop their prices to keep competitive. It is going to save us trillions over the next 4 years.

OD

Originally Posted by OceanDude

Red you are looking at this wrongheaded. This deficit is an investment in foreign interests that will pay handsomely when the Iraqi Oil starts to flow and the rest of the middle east has to drop their prices to keep competitive. It is going to save us trillions over the next 4 years.

OD

How many lives will it cost? How many barrels will be lost to sabotage? How many licks does it take to get to the tootsie roll center of a tootsie pop?

Glad I locked in my ARM at 1.9%. That 1/4 point rise could have caused an increase of .025% in by base rate had I waited 1 more day and cost me a whopping $6 on my monthly payment. But since I get to write of the interest anyway it's quite nearly a wash and I can go celebrate a good business decision at my next annual meeting that my wife and I hold each year the the Vale Ski Resort and write that off too. And since all my income can be reduced by the carry forward expenses from the loss of business when the economy tanked 4 years ago I will have essentially zero income. Which is cool since I have not bothered to work in 4 years. I love this unemployment stuff. Never had such a grand lifestyle and no bosses to report to nor rode around in such nice cars. Wish I had quit corporate America long ago...

OD

Originally Posted by dg806

If you have 337,000 less claims than last month, how is this not good news and relevent? Where did they go??

it could mean that 337,000 unemployment claims expired last month. it surely doesn't prove or disprove that 337,000 jobs were created or that there are 337,000 less unemployed people as the month before....