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economy

USA Debt Interest Falls Below 2%

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Economy
31 minutes ago, Spanish Eyes said:

confused question mark GIF by Preity G  Zinta

It's self explanatory lol

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FABian

2020 recession was true 

Time to start buying 

Edited by FABian
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Economy
7 minutes ago, FABian said:

2020 recession was true 

Time to start buying 

Honestly I think we need one anyway

 

If we have one now it will be more mild than if it's later but it will show just in time for those fools that Trump is no economic genius

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Spanish Eyes
43 minutes ago, Economy said:

It's self explanatory lol

I was a Spanish major, sis. lol This is not self-explanatory to me. What is the significance of the debt interest going below 2%?

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Economy
5 minutes ago, Spanish Eyes said:

I was a Spanish major, sis. lol This is not self-explanatory to me. What is the significance of the debt interest going below 2%?

It shows extreme pessimism for economic growth among investors

 

If investors and institutions are investing money in bonds that much (pushing yields way down) it's because they lack confidence in stocks and other riskier Investments right now

 

It also suggests they expect interest rates to drop and are locking fixed income as it is now before it drops further

 

Here in Canada 10 year bonds are at 1.5%.... in Germany they are at -0.28% :duck:

 

Several things influence a Countries interest rates:

 

- Size of debt and deficits. If government needs to borrow more than interest must go up in order to attract enough investors to cover shortfall

- Credit Rating. Countries with a good credit rating can borrow cheaper cuz they are seen as less risky

- The rate the Central Banks of each Country set as they try to keep economic growth sustainable and inflation stable. That rate has some influence on the general cost of credit on the entire system including private debt not just government

- inflation is a factor. If inflation is higher investors may demand higher rates to cover it

- Good or bad economy. Generally when economy is stronger rates go up because Central Bank tends to raise rates plus more money goes to stocks and government has to compete with higher rates to attract money. When economy is weak and investors was a safe investment, government bond interest rates tend to drop

Edited by Economy
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Economy

@Spanish Eyes I see u reacted to my comment before I finished editing it

 

I explained in more detail how rates change

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PartySick
1 hour ago, Economy said:

Honestly I think we need one anyway

 

If we have one now it will be more mild than if it's later but it will show just in time for those fools that Trump is no economic genius

Yes. Sooner rather than later so Trump is to blame, not whatever Democrat beats him in 2020.

Not sure what anyone expected, Dumpty did the same crap that Bush and other GOP presidents/leaders did that ended up ruining our economy.

Thank god for people like Bill Clinton and Barack Obama :pray:

I don't need you to respect me, I respect me. I don't need you to love me, I love me.
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FABian
1 hour ago, Economy said:

Honestly I think we need one anyway

 

If we have one now it will be more mild than if it's later but it will show just in time for those fools that Trump is no economic genius

Lol. I feel like its gonna be part of his campaign. Mark my words there will be promises....

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FABian
6 minutes ago, PartySick said:

Yes. Sooner rather than later so Trump is to blame, not whatever Democrat beats him in 2020.

Not sure what anyone expected, Dumpty did the same crap that Bush and other GOP presidents/leaders did that ended up ruining our economy.

Thank god for people like Bill Clinton and Barack Obama :pray:

Girl this coming recession has been coming since 2008. Way before trump's time. He just got the but end of it. Lmao. 

Recessions dont happen after just 2-3 years 

Edited by FABian

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Economy
2 minutes ago, PartySick said:

Yes. Sooner rather than later so Trump is to blame, not whatever Democrat beats him in 2020.

Not sure what anyone expected, Dumpty did the same crap that Bush and other GOP presidents/leaders did that ended up ruining our economy.

Thank god for people like Bill Clinton and Barack Obama :pray:

What did bush do???? Besides the push for fanae Mae and Freddie Mac I mean?

 

Also Obama really didn't do anything that significant for the economy other than the bailouts tbh

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Economy
Just now, FABian said:

Girl this coming recession has been coming since 2008. Way before trump's time. He just got the but end of it. Lmao. 

Recessions dont happen after just 2-3 years 

No but he's done stuff to create uncertainty and reduce investment

 

His trade wars are having a measurable impact on the cost of certain things impoverishing consumers and raising costs of home builders and things like shale crackers

 

He's not that smart with the economy

 

Then he has the nerve to call it the best economy ever but keeps criticizing the fed for keeping rates "too high"...

 

Like if the economy was so perfect it wouldn't need still historically low rates of 2.5% to sustain it. He sounds like a fool to anyone that understands economics even a little bit

 

 

 

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