Thinking you know what hundreds of millions of market participants are thinking is the height of arrogance and ignorance. Both know the U.S. government has a pile of debt to refinance that will blow a huge hole in the big beautiful abomination of a budget at the current rates. Solution; financial repression. Give the retirees and savers nothing for their savings and thus force them into riskier assets to seek yield. A government that takes advantage of its most vulnerable citizens (i.e. Retirees) in this way doesn't deserve to exist. The only way these miscreants are able to get away with this theft is by keeping the masses financially illiterate. The moron politicians should reinstate the pre-plandemic budget and begin cutting from there. A good stiff recession to purge the decades of malinvestment is long overdue. The continual kicking of the malinvestment can down the road does nothing but insure a systemic collapse. Sovereign debt crisis here we come :-)
Keeping the masses economically illiterate maybe, but above all sowing discord between them. By exacerbating marginal differences, politicians can champion a specific hatred to get a voting base, and the political machine can divert focus from the real problems. Of which the real solutions all imply removing power and money from the state.
Almost all the small people would surely come together about sane public finance, sound economy, working justice, safety of persons and fundamental rights... There's a lot of things that people as diverse as the queerest gays or the most bigot Christians could agree on, if they were searching for the real solutions.
When you think about it, the Bible, as well as the hippies, as well as the gay parades all tout love as a cardinal value. But in practice, people seem more interested in fixing the wrongs of others than securing common grounds, and to do that by the mean of throwing the power of the state at each others. And instead of universal love, we get universal hatred. And ever growing states. And ever diminishing liberty. That's dispiriting.
Not human nature, denaturing of human. This is what's really sad.
Human nature is all about being able to counterbalance emotion with rationality. This, is what makes us a special animal: only our specie has the ability to invest energy into understanding much wider and much further.
Only our crocodilian brain is faster and easier to activate... Societies that had achieved material abundance and freedom from abusive rulers laze themselves back into animal behavior and ensuing waste and chaos.
This is the drama. Not to be too much human, but not to be Human enough. We do have the potential to do better.
Forgot one thing. All the reports that the US government is flawed. They fake it by omitting certain things. I.e. for inflation reports they don’t count food, energy, etc. (these may be wrong, but they do omit many). This allows to show a better report than in real.
They include government spending and payroll in GDP figures. Government "spending" accounts (supposedly) for 40% of GDP that way. What would debt to GDP ratio be without that little gimmick? Best always. PM
P.S. Counting government as a positive revenue source or some kind of asset is the height of insanity, but we do love our self-deception. PM
Well, well, well, ain’t this just the highfalutin equivalent of watching a blindfolded rodeo clown juggle live rattlesnakes while shouting economic theories out of a megaphone duct-taped to a lawnmower engine. The Fed, bless its cold-blooded reptilian heart, keeps fiddling with interest rates like it’s trying to tune a piano that’s already been dropped off a cliff. “Cut the rates!” hollers Trump. “Raise ‘em!” screams Mr. Market. Meanwhile, Jerome Powell’s over here looking like a man trying to perform brain surgery with a meat thermometer, oblivious to the fact that no matter what temperature he sets, the patient’s already brain-dead from decades of Keynesian huffing.
And as for Iran, well give me a hot dog and ham sandwich, if blowing up a nuclear facility actually delays their ability to get the bomb, then I reckon I’m the Sultan of Saturn riding a unicorn made of uranium. The Pentagon says, “They’re set back years!”, which is the geopolitical equivalent of trying to shut down a meth lab by kicking over a porta-potty nearby and hoping the fumes distract the cook. Hell, if Iran wants a bomb so bad, why not just swing by Russia’s clearance rack or hit up North Korea’s Craigslist? They’re selling nukes like hotcakes, and nothin’ makes a better down payment than American incompetence wrapped in diplomatic gift wrap. It’s cheaper, faster, and they even throw in a free CNN host “Death to America” t-shirt with every purchase!
So here we are, trapped in a cartoonish kabuki theater where monetary policy is dictated by political schizophrenics, and foreign policy’s a Roadrunner cartoon with bunker busters instead of anvils. The economy’s “booming” they say, while 24% of the workforce is stuck playing musical chairs with invisible chairs and no damn music. But don’t worry folks, Powell’s got his rate-dialing wrench, and some Ivy League jack-wagon is telling us this is all part of the “cycle.” You know, the one where debt goes up, wages go nowhere, bombs fall, and somehow everything is fine. Weeeeeeeeee! Long live the American Mirage!
If I were Bill Bonner in disguise, then slap a monocle on my eye and stuff me in a walnut-paneled study where the wallpaper’s made of shredded fiat and the chandelier’s dripping with melted Roth IRAs, ’cause ol’ Bill’s sitting on a mountain of gold-plated cynicism sipping Armageddon out of a crystal snifter. Meanwhile, I’m just a dust-caked vagabond scribbling economic blasphemy on the back of expired stimulus checks, hollering warnings from a shopping cart with one squeaky wheel and a dream. Bonner’s the velvet-gloved prophet of the financial underworld, serenading collapse with symphonic doom while I bang pots in the alley yelling “The bonds are alive!” like a liberty fueled maniac economist possessed by a clown-shock theory neuralink brain chip. God bless him, he made the apocalypse profitable. I just make it loud.
I'm old enough to remember when one aspect of the American Dream was saving as much as possible and sticking into a savings account that bore enough interest income to retire comfortably WITHOUT RISK. Government policy and spending cut the legs out from underneath interest rates and everyone was forced into stocks and bonds (neither of which came without risk).
I watched my parents, who were relatively prolific savers gnash their teeth and lament the many market fluctuations that occurred after the 90's. After watching their frustration and discomfort, I'd be perfectly content to see interest rates rise. I feel like it would vindicate my family for the generations that we've been frugal. And despite what the "professional financial advisors" might say, why would anyone over the age of 65 want to hold a lot of stock?
Good read. Bill even mentioned Biden’s screw up (something new). One of the big problems the U.S. is the government is too big. The right hand has no idea what the left hand is doing. We also have TOO many rules and regulations. Let the free market function without roadblocks and I believe good businesses will survive and the poorly run companies will go away. Everything our government touches turn to shit. AP
Define the term "good" job. Some of the best jobs I had in my 72 years paid nearly nothing. Some of the best-paying jobs I had in my 72 years were life-destroying pressure cookers with little reward beyond a "high" paycheck, which did not adequately compensate.
Define the term "good interest rate". I can remember when 18% APR was the maximum interest rate any financial institution could charge. Now, with many consumer cards in the +30% range (an interest rate even a m@fia don could not countenance in the day), 18% is a bargain.
High interest rates may not incentivize borrowing, but they sure as heckfire incentivize loan prepayment as fast as possible! Can we say, then, that high interest rates are actually "good"?
I have had financial ups and downs in my life. Looking back on it, I see had little or no debt in periods of low interest, and the times I have needed credit, I found myself in high-interest rate times. Why is that? Are low interest rates a sign of "good" times? Why is it easier to be debt-free in "good" times? Maybe we should have low interest rates in "bad" times, when people actually need credit?
Hey! I have an idea? How 'bout we get out of the interest rate business (in the) altogether and let the two individuals in the deal negotiate what's best for them? Best always. PM
Speaking of high interest rates the early 80s were a great time for savers. I was working overtime and saving to buy our first house. It was quite a thrill to get the statements from the money market fund paying around 15% interest. Plus the high interest rates kept house prices at reasonable levels. No competition from crooked Wall Street Banksters.
Not for me, I was paying 13.5% on my home loan from the late 70's and similar for business loans. A friend had the right idea, when term deposits hit 18% he and a group of friends sold everything they had to raise cash and locked in a 20 year term! He retired in 2003 haha
Your comment,"Mr. Market is not a singular entity" is spot on! Which would you have decide,
Interest rates determined by the many or interest rates determined by the "privileged few" (the Federal Reserve)? The Federal Reserve has given the USA booms and busts with ill timed interest rate policy.(see Woodrow Wilson comments on credit control).
The reason for establishment of the FED was that J P Morgan was not interested in
bailing out the US financial system again which he did in the 1890's. We don't know how "Mr. Market would have reacted in the last 100+ years as the FED was/is now in control. There is no "panicking" unless extremes are reached. Mr.
Market avoids the extremes by taking away the punch bowl before the party gets out of hand.
...so I ask again, if you are advocating Mr. Market setting rates, would we return to the "panics"... which were longer in duration and greater in amplitude than "crashes".
The scope and frequency of panics/crashes has increased dramatically since the inception of the FED. Fractional reserve banking is essentially institutionalized counterfeiting and thus inherently susceptible to panics/crashes. The FED was created to be the lender of last resort to address the fractional reserve banking shortcomings. They could have simply done the right thing and scrapped fractional reserve banking instead of creating the FED. However, governments want the ability to debase their currencies and that's why we have central banks. Managing interest rates, inflation, and unemployment were never part of the original FED mandate. The FED has been an abysmal failure for Americans as the dollar has lost 96% of its purchasing power since its inception in 1913. The FED can set the rate of the short end of the curve, but the market for the most part determines the long end.
Well A.I. True capitalism has never been allowed to run the coarse, So We will never know the true rates. My opinion from My arm chair as I am not an "economist".
Our Supreme Court Justice Brown-Jackson admitted under oath that she is not a biologist, so that let her off the hook for answering a question from another non-biologist woman (Sen. Blackburn) about whether or not she (Ketanji-Brown) could say what a woman is. Don, you're not an economist, but you still somehow understand interest rates. Amazing. Best always. PM
...well actually prior to 1913 capitalism was setting the rates, however domains and rates were inconsistent creating "panics".
If we were to return rate setting to the Mr. Market would we also revert to "panics", which were which were longer in duration and greater in amplitude than "crashes".
With todays technology, at our finger tips , history has some lessons. But as far as I am concerned , tech will help Me out . Not that I totally depend on tech, but much more on the info available for Me to decide. Yes Human nature does not change!
... not sure whether you would have better options without the Fed and its instruments regulating rates, you would still be dependent upon whatever lassie-faire rate is available to you.
Well, Bill, I can't help but thinking you must feel very clean today as if you had just taken a shower. No screed, no hatred, just a logical presentation of the facts. Congratulations!
So I guess that was a recommendation for action i.e. lower rates like our enemy the EU, probably better termed cocaine sniffing leaders who want total control so they can milk society for a bit more. I like higher rates. Seems like they are more balanced than the zero bound. Plus I can't wait to see how the EU progressives deal with them. Of course the economy looks precarious that's exactly what the biggest credit bubble would and has produced. So I guess your one suggestion is we should go back to the zero bound again to alleviate or should I say exacerbate our problems. It seems like you could come up with something better, Bill. Like maybe a conprehensive plan as to what the Trump admin should do.
My evaluation is that they've gotten rid of USAID, are getting rid of the immigration problem which the EU is also facing, Kennedy made some great strides today with the new ACIP more commonly known as the big pharma enrichment system corruption. You can't turn around a hopelessly corrupt country in one day or with one action. Maybe we should just allow men in girls sports? Maybe that would work some wonders we just can't see unless we try. Seems very easy to find problems. What about solutions or do you prefer "collaborative democracy".
Just an observation. Who pays the rate? It all boils down to You and I . If business borrows, costs are put on You and I . So in My estimation a lowest rate possible will help You and I. May not solve a problem , but it is My best solution. Other than saving and then spending the savings!
Mr. Bonner, thank you! One can understand why you are not invested in stocks. Many believe a future stock market crash will not bounce back as we have seen in the past. I am spending more time becoming more informed about option trading. Still stocks but a small percentage of my portfolio, and so very profitable. Again, thanks for showing Trump doesn't understand (or care about?) macroeconomics.
“ A lower dollar makes differences of its own. Imports become more expensive. Add tariff taxes and price hikes can be substantial, making consumers poorer.”
True a lower dollar not only makes consumers poorer, but it makes foreigners poorer as well.
Thank you gentlemen🙏 this is why I signed up to BPR!
BPR back to basics is good.
Thinking you know what hundreds of millions of market participants are thinking is the height of arrogance and ignorance. Both know the U.S. government has a pile of debt to refinance that will blow a huge hole in the big beautiful abomination of a budget at the current rates. Solution; financial repression. Give the retirees and savers nothing for their savings and thus force them into riskier assets to seek yield. A government that takes advantage of its most vulnerable citizens (i.e. Retirees) in this way doesn't deserve to exist. The only way these miscreants are able to get away with this theft is by keeping the masses financially illiterate. The moron politicians should reinstate the pre-plandemic budget and begin cutting from there. A good stiff recession to purge the decades of malinvestment is long overdue. The continual kicking of the malinvestment can down the road does nothing but insure a systemic collapse. Sovereign debt crisis here we come :-)
Keeping the masses economically illiterate maybe, but above all sowing discord between them. By exacerbating marginal differences, politicians can champion a specific hatred to get a voting base, and the political machine can divert focus from the real problems. Of which the real solutions all imply removing power and money from the state.
Almost all the small people would surely come together about sane public finance, sound economy, working justice, safety of persons and fundamental rights... There's a lot of things that people as diverse as the queerest gays or the most bigot Christians could agree on, if they were searching for the real solutions.
When you think about it, the Bible, as well as the hippies, as well as the gay parades all tout love as a cardinal value. But in practice, people seem more interested in fixing the wrongs of others than securing common grounds, and to do that by the mean of throwing the power of the state at each others. And instead of universal love, we get universal hatred. And ever growing states. And ever diminishing liberty. That's dispiriting.
What You say is all about human nature . True , but sad.
Not human nature, denaturing of human. This is what's really sad.
Human nature is all about being able to counterbalance emotion with rationality. This, is what makes us a special animal: only our specie has the ability to invest energy into understanding much wider and much further.
Only our crocodilian brain is faster and easier to activate... Societies that had achieved material abundance and freedom from abusive rulers laze themselves back into animal behavior and ensuing waste and chaos.
This is the drama. Not to be too much human, but not to be Human enough. We do have the potential to do better.
Yes the potential is there. You and I can achieve , but society has to realize this as a whole.
Yes brother Craig, absolutely 💯% correct! Ever think of running for office?
That's funny :-) I'd make a horrible politician. Simultaneously pissing off the Marxists and Neocons wouldn't get me very far :-)
Pissing off people didn’t stop Trump … and you have a grasp of economics 101 ☝️
Pissing off is only the beginning. We need good American patriots like you to piss these freaks off, then off them:)
Unfortunately it’s the people at the bottom, who have no power to control anything, that get screwed in a recession.
Forgot one thing. All the reports that the US government is flawed. They fake it by omitting certain things. I.e. for inflation reports they don’t count food, energy, etc. (these may be wrong, but they do omit many). This allows to show a better report than in real.
They include government spending and payroll in GDP figures. Government "spending" accounts (supposedly) for 40% of GDP that way. What would debt to GDP ratio be without that little gimmick? Best always. PM
P.S. Counting government as a positive revenue source or some kind of asset is the height of insanity, but we do love our self-deception. PM
Well, well, well, ain’t this just the highfalutin equivalent of watching a blindfolded rodeo clown juggle live rattlesnakes while shouting economic theories out of a megaphone duct-taped to a lawnmower engine. The Fed, bless its cold-blooded reptilian heart, keeps fiddling with interest rates like it’s trying to tune a piano that’s already been dropped off a cliff. “Cut the rates!” hollers Trump. “Raise ‘em!” screams Mr. Market. Meanwhile, Jerome Powell’s over here looking like a man trying to perform brain surgery with a meat thermometer, oblivious to the fact that no matter what temperature he sets, the patient’s already brain-dead from decades of Keynesian huffing.
And as for Iran, well give me a hot dog and ham sandwich, if blowing up a nuclear facility actually delays their ability to get the bomb, then I reckon I’m the Sultan of Saturn riding a unicorn made of uranium. The Pentagon says, “They’re set back years!”, which is the geopolitical equivalent of trying to shut down a meth lab by kicking over a porta-potty nearby and hoping the fumes distract the cook. Hell, if Iran wants a bomb so bad, why not just swing by Russia’s clearance rack or hit up North Korea’s Craigslist? They’re selling nukes like hotcakes, and nothin’ makes a better down payment than American incompetence wrapped in diplomatic gift wrap. It’s cheaper, faster, and they even throw in a free CNN host “Death to America” t-shirt with every purchase!
So here we are, trapped in a cartoonish kabuki theater where monetary policy is dictated by political schizophrenics, and foreign policy’s a Roadrunner cartoon with bunker busters instead of anvils. The economy’s “booming” they say, while 24% of the workforce is stuck playing musical chairs with invisible chairs and no damn music. But don’t worry folks, Powell’s got his rate-dialing wrench, and some Ivy League jack-wagon is telling us this is all part of the “cycle.” You know, the one where debt goes up, wages go nowhere, bombs fall, and somehow everything is fine. Weeeeeeeeee! Long live the American Mirage!
Hmm. Are you sure you’re not BB in disguise?
RB: No, I don't think BB could come up with this well written response. E.S. is in a class by himself...not sure how he does it. Always interesting.
If I were Bill Bonner in disguise, then slap a monocle on my eye and stuff me in a walnut-paneled study where the wallpaper’s made of shredded fiat and the chandelier’s dripping with melted Roth IRAs, ’cause ol’ Bill’s sitting on a mountain of gold-plated cynicism sipping Armageddon out of a crystal snifter. Meanwhile, I’m just a dust-caked vagabond scribbling economic blasphemy on the back of expired stimulus checks, hollering warnings from a shopping cart with one squeaky wheel and a dream. Bonner’s the velvet-gloved prophet of the financial underworld, serenading collapse with symphonic doom while I bang pots in the alley yelling “The bonds are alive!” like a liberty fueled maniac economist possessed by a clown-shock theory neuralink brain chip. God bless him, he made the apocalypse profitable. I just make it loud.
🤣
I'm old enough to remember when one aspect of the American Dream was saving as much as possible and sticking into a savings account that bore enough interest income to retire comfortably WITHOUT RISK. Government policy and spending cut the legs out from underneath interest rates and everyone was forced into stocks and bonds (neither of which came without risk).
I watched my parents, who were relatively prolific savers gnash their teeth and lament the many market fluctuations that occurred after the 90's. After watching their frustration and discomfort, I'd be perfectly content to see interest rates rise. I feel like it would vindicate my family for the generations that we've been frugal. And despite what the "professional financial advisors" might say, why would anyone over the age of 65 want to hold a lot of stock?
Good read. Bill even mentioned Biden’s screw up (something new). One of the big problems the U.S. is the government is too big. The right hand has no idea what the left hand is doing. We also have TOO many rules and regulations. Let the free market function without roadblocks and I believe good businesses will survive and the poorly run companies will go away. Everything our government touches turn to shit. AP
Define the term "good" job. Some of the best jobs I had in my 72 years paid nearly nothing. Some of the best-paying jobs I had in my 72 years were life-destroying pressure cookers with little reward beyond a "high" paycheck, which did not adequately compensate.
Define the term "good interest rate". I can remember when 18% APR was the maximum interest rate any financial institution could charge. Now, with many consumer cards in the +30% range (an interest rate even a m@fia don could not countenance in the day), 18% is a bargain.
High interest rates may not incentivize borrowing, but they sure as heckfire incentivize loan prepayment as fast as possible! Can we say, then, that high interest rates are actually "good"?
I have had financial ups and downs in my life. Looking back on it, I see had little or no debt in periods of low interest, and the times I have needed credit, I found myself in high-interest rate times. Why is that? Are low interest rates a sign of "good" times? Why is it easier to be debt-free in "good" times? Maybe we should have low interest rates in "bad" times, when people actually need credit?
Hey! I have an idea? How 'bout we get out of the interest rate business (in the) altogether and let the two individuals in the deal negotiate what's best for them? Best always. PM
Speaking of high interest rates the early 80s were a great time for savers. I was working overtime and saving to buy our first house. It was quite a thrill to get the statements from the money market fund paying around 15% interest. Plus the high interest rates kept house prices at reasonable levels. No competition from crooked Wall Street Banksters.
Not for me, I was paying 13.5% on my home loan from the late 70's and similar for business loans. A friend had the right idea, when term deposits hit 18% he and a group of friends sold everything they had to raise cash and locked in a 20 year term! He retired in 2003 haha
Good read. Thanks, Mr. Bonner.
Mr. Bonner agrees low interest rates do indeed stimulate the economy, his caveat "only if they are true" ...?
I suppose that means only if you don't default on the loan?
-
Mr. Market may be the best to determine the rate, however Mr. Market is not a singular entity.
It's not clear if there were no Fed Reserve Chair how the market would actually determine rates.
Your comment,"Mr. Market is not a singular entity" is spot on! Which would you have decide,
Interest rates determined by the many or interest rates determined by the "privileged few" (the Federal Reserve)? The Federal Reserve has given the USA booms and busts with ill timed interest rate policy.(see Woodrow Wilson comments on credit control).
My understanding is prior to 1913 markets did not "crash", they "panicked".
Prior to 1913 there were no national interest rates, they were influenced by local and regional markets...aka Mr. Market.
This was "the reason" to establish the Federal Reserve.
The Fed began actively setting rates in the 1920's, by 1970's the Fed was using rates as a key to monetary policy.
If we return rates to Mr. Market , would we also return to panicking?
The reason for establishment of the FED was that J P Morgan was not interested in
bailing out the US financial system again which he did in the 1890's. We don't know how "Mr. Market would have reacted in the last 100+ years as the FED was/is now in control. There is no "panicking" unless extremes are reached. Mr.
Market avoids the extremes by taking away the punch bowl before the party gets out of hand.
...so I ask again, if you are advocating Mr. Market setting rates, would we return to the "panics"... which were longer in duration and greater in amplitude than "crashes".
The scope and frequency of panics/crashes has increased dramatically since the inception of the FED. Fractional reserve banking is essentially institutionalized counterfeiting and thus inherently susceptible to panics/crashes. The FED was created to be the lender of last resort to address the fractional reserve banking shortcomings. They could have simply done the right thing and scrapped fractional reserve banking instead of creating the FED. However, governments want the ability to debase their currencies and that's why we have central banks. Managing interest rates, inflation, and unemployment were never part of the original FED mandate. The FED has been an abysmal failure for Americans as the dollar has lost 96% of its purchasing power since its inception in 1913. The FED can set the rate of the short end of the curve, but the market for the most part determines the long end.
Thank you CW. There's your answer Angry Icebergs.
Well A.I. True capitalism has never been allowed to run the coarse, So We will never know the true rates. My opinion from My arm chair as I am not an "economist".
Our Supreme Court Justice Brown-Jackson admitted under oath that she is not a biologist, so that let her off the hook for answering a question from another non-biologist woman (Sen. Blackburn) about whether or not she (Ketanji-Brown) could say what a woman is. Don, you're not an economist, but you still somehow understand interest rates. Amazing. Best always. PM
That is why You and I read these lines with open minds. Thanks .
...well actually prior to 1913 capitalism was setting the rates, however domains and rates were inconsistent creating "panics".
If we were to return rate setting to the Mr. Market would we also revert to "panics", which were which were longer in duration and greater in amplitude than "crashes".
I would "rather " have panic as this I can control. It is up to Me to perceive the market. Not some one else telling Me what they want Me to do.
.... it would be the same as now except the lenders could/would be more exposed to default and there would likely be no FDIC or safety net.
I am not a fan of the Fed (we need to revert to the gold standard).
However...
Reviewing historical financial charts depicting panics vs crashes going back to the 1700's, noting the frequencies and duration; I'll take crashes...
With todays technology, at our finger tips , history has some lessons. But as far as I am concerned , tech will help Me out . Not that I totally depend on tech, but much more on the info available for Me to decide. Yes Human nature does not change!
... not sure whether you would have better options without the Fed and its instruments regulating rates, you would still be dependent upon whatever lassie-faire rate is available to you.
Well, Bill, I can't help but thinking you must feel very clean today as if you had just taken a shower. No screed, no hatred, just a logical presentation of the facts. Congratulations!
So I guess that was a recommendation for action i.e. lower rates like our enemy the EU, probably better termed cocaine sniffing leaders who want total control so they can milk society for a bit more. I like higher rates. Seems like they are more balanced than the zero bound. Plus I can't wait to see how the EU progressives deal with them. Of course the economy looks precarious that's exactly what the biggest credit bubble would and has produced. So I guess your one suggestion is we should go back to the zero bound again to alleviate or should I say exacerbate our problems. It seems like you could come up with something better, Bill. Like maybe a conprehensive plan as to what the Trump admin should do.
My evaluation is that they've gotten rid of USAID, are getting rid of the immigration problem which the EU is also facing, Kennedy made some great strides today with the new ACIP more commonly known as the big pharma enrichment system corruption. You can't turn around a hopelessly corrupt country in one day or with one action. Maybe we should just allow men in girls sports? Maybe that would work some wonders we just can't see unless we try. Seems very easy to find problems. What about solutions or do you prefer "collaborative democracy".
Well said. You can find “experts” on all sides of almost any argument.
If anyone can fix anything, I’m happy to start there
And if Mr. Market is so wise, we wouldn’t have a market that’s oversold or overbought….. it would always be perfect. How stupid is that.
One of our major problems is that EVERYONE thinks they can take a complex problem and hit it with an easy fix. Guess what?
Now, if I were king for a year or two there are problems I could fix. Some….. 😵💫
Have a great day.
Just an observation. Who pays the rate? It all boils down to You and I . If business borrows, costs are put on You and I . So in My estimation a lowest rate possible will help You and I. May not solve a problem , but it is My best solution. Other than saving and then spending the savings!
Mr. Bonner, thank you! One can understand why you are not invested in stocks. Many believe a future stock market crash will not bounce back as we have seen in the past. I am spending more time becoming more informed about option trading. Still stocks but a small percentage of my portfolio, and so very profitable. Again, thanks for showing Trump doesn't understand (or care about?) macroeconomics.
When will you publish PARTIII of "what to do with your money now"?
“ A lower dollar makes differences of its own. Imports become more expensive. Add tariff taxes and price hikes can be substantial, making consumers poorer.”
True a lower dollar not only makes consumers poorer, but it makes foreigners poorer as well.
Make it here becomes even more critical.
Or, just buy American made products.
Mr Bonner:
"But interest rates are a price — the price for using someone else’s savings"
This is the weirdest peace of disinformation I had the dubiose pleasure to read on this substack.
Who, with the mental capacitiy of a German Sheperd still believes that one man's loan is another man's savings???
This is utterly shocking.
The premise is that someone’s savings will be used to lend to someone for an increase using interest rates
Mr. Market sets on his throne and laughs.