Here It Comes: New York Fed President Says "If Economy Weakens Further, Would Consider Negative Rates"
Remember when the Fed's dots - less than a month ago - suggested there would be 4 rate hikes in 2016? Ah, the memories. Well, you can not only forget that (now that the market is estimating the next rate hike will come in October if ever), but it appears that the Fed will follow Kocherlakota's advice after all and not only cut rates (the possibility of a January rate cut now is 10%), but will pass go, and collect negative rates:
- DUDLEY: IF ECONOMY WEAKENED, WOULD CONSIDER NEGATIVE RATES
After today's atrocious, recessionary data, one can be certain that the Fed is furiously considering negative rates.
While the comment came from the Dudley Q&A, his full speech can be found here.
And just to add confusion, here is a spurious Bloomberg headline which will hardly aid matters:
- YELLEN SAID IN 2010 JAPAN-STYLE DEFLATION `WORST-CASE SCENARIO'
So both NIRP and more QE, just as anyone who is not a tenured economist or drama major predicted.
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Negative rates on credit cards and mortgages! Now that will fix it!
why is Ptolemy_newit banned?
i only chat movie ideas?
why is the fed so negative? lol
long Sealy
ain't going to happen, there'll be lots of very confused people when the Fed hikes again soon
Didn't Obama tell the American people that the recovery was doing great?
why is the fed so negative? lol
ZH always going into 'maintenance mode' when market panics..haha. rock on tylers
The FED is the cause, the disease and the they expect us to believe the answer?
Retarded... how can ANYONE take them serious.. at all?
ZH always going into 'maintenance mode' when market panics..haha. rock on tylers
why is the fed so negative? lol
why is the fed so negative? lol
why is the fed so negative? lol
why is the fed so negative? lol
why is the fed so negative? lol
why is the fed so negative? lol
why is the fed so negative? lol
why is the fed so negative? lol
I can tell that A LOT of people hit the submit button 7-8 times, ALL at the same moment in time...LOL. That's what took the servers down... ;-)
if rates go negative... mandate all fed salaries and pensions go negative too...
Obama at SOTU "I'm BULLSHIT on economy!".
Well Mr. Dudley, it's obvious you never worked for a commercial bank, because commercial banks cannot function in a negative interest rate environment. Just another Goldman Sachs crook and Group of Thirty apparatchik, right tovarisch?
Everything was going so so sweetly and then RUSSIA went to SYRIA and exposed US !
Iranian aggression!
http://www.mintpressnews.com/212707-2/212707/
I write down my loans to oil e&p AND I have to pay my clients who borrow money? Weeee
Tax the Fed.
hey man, what the fuck? no one told me "Interstellar" was a movie about the US Fed Reserve and US economy.
The Fed fucks must have been abandoned by their masters, they don't know what to do. One says oil is going up, the other says negative interest rates, Yellen says rising interest rates. Obama says everything is lovely, the army is close to mutiny and the see-aye-eh has gone rogue while ISIS tries to stay alive by stealing Libyan oil. This is the point where the code word SNAFU applies: Situation normal, all fucked up.
This is just like the part in The WALL where the fat pig tears it down trying to escape the slaughter. Whatever. Hope they burn in hell.
"One and Done."
Mr. Peter Schiff
Because if what we've done so far hasn't worked, it must mean we didn't do enough of it. It can't possibly be that our simplistic economic theory and the models built upon it, fed with manipulated data, are wrong.
Insanity due to theory induced blindness.
"The mystery is how a conception that is vulnerable to such obvious counterexamples survived for so long. I can explain it only by a weakness of the scholarly mind that I have often observed in myself. I call it theory-induced blindness: Once you have accepted a theory, it is extraordinarily difficult to notice its flaws. As the psychologist Daniel Gilbert has observed, disbelieving is hard work." -- Daniel Kahneman who shared the 2002 Nobel Memorial Prize in Economic Sciences with Vernon L. Smith.
If the useless fucking paper-pushers want to commit suicide by killing the only thing that they control (paper fiat), by all means, LET THEM!
Central planners are nothing if not predictable, are they...
They've pretty much confiscated most of our 2015 "growth" already, and that's not good enough for them. They want more than just the meat, they're going for the bone now.
Thank you Democrats for caving in on the Fed audit, you corrupt fucking scumbags.
Have you EVER blamed anything on a Republican? Fucking one-sided ideologues. Use your brain, man.
There are no Republicans or Democrats, silly. Just politicians with a label. Of course we can blame the Republicans for all kinds of stuff. But you are being very dodgey here. The Democrats in this case are clearly to blame on preventing an audit of the Fed. Open your eyes, look at the vote! Do you want to shift blame because you are a democrat? If so, then you are just another captured pansey. He called the shot correctly. The Dems screwed us. Just like Bush screwed the US by setting up Homeland Security that now spies on every US citizen. I do not myself deny that the Republicans are squarely to blame for that and plenty of other things. But hey, call it the way it happens. Call it truthfully. We know since five years back there is no "left or right". Only liberty or tyranny.
Peter Schiff to be named special prosecutor for upcoming Fed trial and sentencing.
Who gets to be the executioner?
Not sure, but there will be a long line of applicants...
gotta run - time to buy some more ag...
Another round of wealth re-distribution is at hand.
Assets at firesale prices and MV w/ buttloads of cash!
In the immortal words of Chevy Chase:
I LIKE IT!
https://www.youtube.com/watch?v=x5eGsAvXzP0
Deflation and bust either this year or '17
https://www.youtube.com/watch?v=X04QjMUmmYQ
NIRP is coming. It slouches towards us rapidly now.
They can only "NIRP" money they have in their possession.
And they're not getting mine.
Wait! Didn't they just put rates up to 1/4 of 1 percent?
Negative rates are in fact a back door to a totalitarian state. For negative rates to work all stores of value must be liberated from private ownership, and absolutely all productive labor will be backed only by debt. It's the death of everything we hold dear.
We are so fucked, and there is nothing gonna stop it. Pull at your "hope" in one hand, and the Fed's shit in the other...see which one fills up faster.
The only way to fix this is to raise rates to 6% or so and just shake out all the deadwood once and for all. It will be an absolute storm, but it's coming anyway. Then, the government must cut spending and try to at least freeze the national debt where it stands. Yes, you have to nuke this mess from space. Unpleasant for sure, but it's the only way.
Completely agree with you, it's the medicine the Fed refuses to take.