Originally Posted by almost there
A bit off topic...
But I do not believe interest rates have much to do with inflation these days. More to do with Gov. debt and the stock market.
According to the powers we had a recovery 6 years ago. And 6 additional years of almost zero % interest? Now for 2 years they keep stalling a .25% rate increase. .25? Just not sure they could service there debt if we had normal / real interest rates that tracks actual/real inflation.
The Fed is afraid real interest rates will crash a stock market that was fueled for years by crazy low interest rates, stock buy backs and investors piling in to avoid safe/lousy interest rates. The Gov has more dependence than ever on the stock market as its own retirement plans are now more linked to the stock market.
Am sure someone will correct me on this. But that's how it looks to me.
You are not going to be corrected by me. I know the local town drunk's opinion carries as much weight as mine but.... I threw in the towel last year on the "inevitable interest rate rise" thing. Heck I even made a profit selling a 10 year brokered CD yielding 3.4% after holding only a few months and cashed in all my IBonds. I went long on safe higher yielding preferred stocks and clipping 6-7 % coupons. If CDs go back to 6% I certainly wont have the last laugh, but I am not losing sleep over the prospects that this happens anytime soon.
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