Fed: rate to 0.25 percent!

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Fed: rate to 0.25 percent!




by Christophe » 17/12/08, 20:36

J'hallucine, the main policy rate of the FED lowered to 0.25% max (fluctuating between 0.0 and 0.25%) ... I think it's a first in the history of finance!

Ah yes I confirm (after research):

The Fed had never lowered its key rate to such a level: the rate of 1%, applied since October, as well as from June 2003 to June 2004, was already the lowest ever applied.


It means that the situation is very very bad ... Positive point: the bankers will earn less! It will make their feet, as a punishment for having broken their toy is still quite light I think ...

Here is the evolution of the key rate between 1954 and 2004:

Image

http://fr.wikipedia.org/wiki/R%C3%A9ser ... 9tats-Unis

Analysis : http://www.trends.be/fr/economie/politi ... ches-.html

Question: if we ask for a credit of $ 1 at 000% in the USA to put them at 000% in France do you think it works? : Evil:
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by Hydraxon » 17/12/08, 20:51

Policy rate. This is not the one that applies to individuals.

More generally, for the actors of the finance: the variations of exchange rates take care to make this maneuver without interest.
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by Christophe » 17/12/08, 20:53

Ah yes ... indirectly this is it ...

Otherwise ok for the credit scam but I'm sure some banksters do it or did it ... : Evil:
Cf: https://www.econologie.com/forums/pieces-a-c ... t6750.html
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by bham » 17/12/08, 21:09

Of course it does, but not at the individual level, if you know what I mean.
I read not so long ago that investors were playing in different countries, Japan being the most profitable country for me; so you just need to borrow money where it is cheapest (low key rate) and place it, ie lend it (since it is the banks that do this) where it is most expensive (key rate high).
The difference goes into the poor banker's pocket : Mrgreen:
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by Lietseu » 17/12/08, 22:06

Bankster octopus : Cheesy:

They will lose more "very precious"!

They will soon be able to do that! : Arrowd:

Image
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by crispus » 17/12/08, 22:15

Japan is precisely the country whose central bank has lowered its rates the most, following the bursting of a speculative bubble around 1990. They never really recovered.

Many investment funds have rushed on a 0% yen to place it elsewhere at 10%: jackpot guaranteed! (Madoff inside : Mrgreen:). This kind of scheming has also undoubtedly contributed to the boom in the economic machine at the global level, flooding the markets with "free" money.

On the local level, however, it didn't work: a 0% loan is great, but even in the absence of interest, at each due date, you still have to pay back the capital!
And given the recession, most Japanese people weren't even able to do it anymore : Lol:

In short, such a measure in a context of euphoria where households get richer, it can work. But in the event of a recession we only impoverish the country: in your opinion, what is the potential of a country whose currency ... is worth nothing? : Mrgreen:
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by I Citro » 17/12/08, 23:09

: Arrow: When Japan proposed ultra low rates to revive its economy, this money ended up in the hands of foreigners. Incidentally, it helped lower rates in Europe and the USA. I learned this when I took out my home loan. I was amazed at the very small differential between the tau I had obtained and the key rates in France (which did not leave a sufficient margin for the bank). :?: The reason was that the money had been bought elsewhere at an ultra competitive tau ... :?
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by bham » 18/12/08, 09:48

Ah thank you guys for correcting me on Japan, it looks like I was wrong.
:|
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by Remundo » 18/12/08, 09:59

Image
It is partly because of the easy money at low rates in the USA that subprimes originated, under the direction of Greenspan it seems to me ...

it smells again of chronic and glassy over-indebtedness in the USA ...

Image

Subprimes II, Back to the Future : Idea:
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by crispus » 18/12/08, 11:02

Remundo wrote:Image

The Japanese crisis dates back to 1990, with global repercussions (see "Balladur years" in France).

The Fed mainly offered discount rates after September 11, 2001, flooding the world with its monkey money to restore investor confidence. After the crash of "new technologies" and the collapse of the Twin Towers, they were seriously hungover ...

The difference between the US and Japan is that in 1990 the Japanese did not want to take on more debt by buying "free" yen. In the absence of "solvent" buyers, the local trade had to adapt by pulling its prices down. This has had repercussions globally on the cost of high-tech products, one of the few areas where Japan has been able to remain competitive.

Conversely, the American - and world - economy has lived at least 6 years of full euphoria, each economic actor gorging itself in passing, inflating its prices at all costs.

Now that the crash has been proven, the Japanese scenario is reproducing worldwide. The borrowers who have not finished repaying the loans in progress, having no prospect of increasing their purchasing power (unemployment), do not want - can - no longer take out other loans, even at zero rate. .. They must be content to live day by day, not with the money that they were promised for tomorrow!

But the current economic system being pyramidal by nature, borrowing must continue at all costs to maintain the illusion. It is impossible to repay outstanding loans, except by taking out new credits.

Consumers no longer want to follow: we must force them! The state now becomes the only borrower, and it is each of us who will have to repay his debt through our taxes ...

But for this scenario to remain valid, it will be necessary to postpone the retirement age ... to at least 500 years! : Lol:

The months and years to come will be exciting to follow ... for the survivors. : Mrgreen:
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