"People are fed up with zero interest rates"

Discussion in 'Wall St. News' started by ASusilovic, Jan 5, 2012.

  1. Near-zero interest rates aimed at pushing investors out of bonds and into stocks appeared to gain some traction as 2011 drew to a close, raising hopes that investors are ready to take on more risk.

    http://www.cnbc.com/id/45887488
     
  2. I see a cause and effect but I don't like use of the word "aimed".

    Seems like there were plenty of reasons for the fed to reduce rates and I'm not sure that stocks were even a major one.
     
  3. MKTrader

    MKTrader

    It wasn't stated at first, but Bernanke was bragging about how well small-caps were performing a year ago. It's certainly in their interest to keep stocks propped up as much as possible.
     
  4. The Fed can increase the money supply, I don't believe they have a clue where it will end up.
     
  5. zdreg

    zdreg

    there were plenty of reasons and none of them were for the average hard working joe, but for the bailout of old line banking interests and the politicians.
     
  6. ?..... Duh! In the hands of banks doing the "carry trade". :eek: :( :mad:
     
  7. Butterball

    Butterball

    In other news: "People are fed up with weather"
     
  8. if you just bought a house with a 30 year fixed mortgage you won't be fed up when it's paid off

    don't worry, rates will go up if anybody can ever think of a good reason to borrow money

    why not just borrow money and use it to buy stocks?

    The value of your home probably isn't going anywhere for a while, take out a home equity loan and buy the market

    after all rates are zero
     
  9. I did just that some years ago.I took out a home equity loan to buy another piece of property. Then I thought to arrange the terms of that mortgage with a balloon payment after five years and put the "balloon" payment amount in the market. Sheesh was my wife pissed when I did that. "Balls said the queen, if I had them I'd be King."
     
  10. MKTrader

    MKTrader

    Despite what the global warming cult thinks, no one controls the weather...not even the Fed (though I'm sure they'd love to).

    And we can't fire the weather or send a hurricane to prison for wrecking the nation.
     
    #10     Jan 5, 2012