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Bernanke's prediction on %
Old 02-27-2013, 02:27 PM   #1
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Bernanke's prediction on %

Said today, when asked for a prediction on where interest rates are heading, that they could be at 6% by 2016. Not clear if he's talking short term or long term rates.

(see the 9:36 am entry)

bernankes-second-day-of-testimony
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Old 02-27-2013, 02:35 PM   #2
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Reader notes that I was incorrect in my report on the interest rate question. Rep. Mike Fitzpatrick, Republican of Pennsylvania, had asked Bernanke when the unemployment rate would fall to 6%. Bernanke said 2016. He wasn't talking interest rates.
...
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Old 02-27-2013, 02:39 PM   #3
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Originally Posted by ronin View Post
Said today, when asked for a prediction on where interest rates are heading, that they could be at 6% by 2016. Not clear if he's talking short term or long term rates.

(see the 9:36 am entry)

bernankes-second-day-of-testimony
The 9:36 entry has apparently been deleted...
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Old 02-27-2013, 02:40 PM   #4
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Originally Posted by hsv_climber View Post
...
hsv, who are you quoting in your post #2 above?
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Old 02-27-2013, 02:41 PM   #5
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hsv, who are you quoting in your post #2 above?
Quote was from the actual article (i.e. from the OP's link).
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Old 02-27-2013, 02:42 PM   #6
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Originally Posted by ronin View Post
Said today, when asked for a prediction on where interest rates are heading, that they could be at 6% by 2016. Not clear if he's talking short term or long term rates.

(see the 9:36 am entry)

bernankes-second-day-of-testimony
Never mind.
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Old 02-27-2013, 03:24 PM   #7
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If unemployment rate will really drop to 6% in 2016, the voluminous additions of liquidity with so many QEs will likely have a rather large impact on inflation and interest rates at that time.
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Old 02-28-2013, 02:32 AM   #8
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If unemployment rate will really drop to 6% in 2016, the voluminous additions of liquidity with so many QEs will likely have a rather large impact on inflation and interest rates at that time.
Ben said this won't happen. When he starts to increase int rates, he will do it slowly so inflation won't occur.
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Old 02-28-2013, 03:48 AM   #9
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Why would we trust or even pay attention to what the Federal Reserve Bank says ?
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Old 02-28-2013, 04:49 AM   #10
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Why would we trust or even pay attention to what the Federal Reserve Bank says ?

Because it impacts our investments. Not everyone stays curled up in a fetal position.
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Old 02-28-2013, 05:07 AM   #11
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For years, until 2008 of course, they said there was no real estate bubble. Should we have followed their advice then ?

"We run the risk, by laying out the pros and cons of a particular argument, of inducing people to join in on the debate, and in this regard it is possible to lose control of a process that only we fully understand," Greenspan said about the housing bubble, according to the transcripts of a March 2004 meeting.

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Because it impacts our investments. Not everyone stays curled up in a fetal position.
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Old 02-28-2013, 05:14 AM   #12
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The reason people listen to Chairman Bernanke is that, as investors, they are looking for an edge, and even though he's not going to give them one, hope springs eternal.
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Old 02-28-2013, 05:19 AM   #13
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The reason people listen to Chairman Bernanke is that, as investors, they are looking for an edge, and even though he's not going to give them one, hope springs eternal.
You got that right. Enough said!
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Old 02-28-2013, 05:19 AM   #14
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The reason people listen to Chairman Bernanke is that, as investors, they are looking for an edge, and even though he's not going to give them one, hope springs eternal.
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Old 02-28-2013, 06:23 AM   #15
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If Bernanke would be as clear and concise as Greenspan was, could really get an edge.
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Old 03-01-2013, 10:01 PM   #16
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If unemployment rate will really drop to 6% in 2016, the voluminous additions of liquidity with so many QEs will likely have a rather large impact on inflation and interest rates at that time.
Ignoring the fact that all the QEs so far have had zero effect on inflation. But, next time for sure, because it must happen, right?
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Old 03-02-2013, 08:40 AM   #17
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IMHO, no matter if you are a conservative or an aggressive investor, and no matter if you agree or disagree with Bernanke, I think you should probably at least listen to what he is saying/doing so you can make better informed decisions on your own financial strategy.
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Old 03-02-2013, 09:27 AM   #18
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IMHO, no matter if you are a conservative or an aggressive investor, and no matter if you agree or disagree with Bernanke, I think you should probably at least listen to what he is saying/doing so you can make better informed decisions on your own financial strategy.
+1. It's not about getting an edge on anything, but getting in sync with what the FED is doing. As Marty Zweig said "Don't fight the FED".
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Old 03-02-2013, 04:55 PM   #19
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Ignoring the fact that all the QEs so far have had zero effect on inflation. But, next time for sure, because it must happen, right?
There is no inflation? My trips to the grocery stores and gas stations every week say otherwise. Airfares have gone up a fair bit. The recent pop up of housing prices will exert upward pressure on cost of living as well.
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Old 03-02-2013, 05:50 PM   #20
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There is no inflation? My trips to the grocery stores and gas stations every week say otherwise. Airfares have gone up a fair bit. The recent pop up of housing prices will exert upward pressure on cost of living as well.
There's no inflation if you take advantage of the rebates being offered by the Administration. Just send receipts marked up to show higher fuel, food or other prices to Washington and they'll gladly send you a check to offset the increases you are seeing.

It isn't as convenient as having prices stay level, as advertised, but as long as you can handle the 2 - 3 week turn-around time to get your check, it works out OK.
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