No, there is definitely no manipulation to benefit democrats

[BigDave]

http://www.politico.com/story/2015/12/e ... tes-216272

[HokieJoe]

The need and reliance on cheap money underscores how unstable our economy is. That's why I laugh when people say we're doing great. As for the article, is there any doubt that politics are tied into Fed monetary decisions? Without Fed pumping 401k's would look like crap, and Obama doesn't get reelected in 2012. Was it all politics? No, I understand the argument for priming the pump. OTOH, I understand the argument for taking the bitter pill.

[TheH2]

The need and reliance on cheap money underscores how unstable our economy is. That's why I laugh when people say we're doing great. As for the article, is there any doubt that politics are tied into Fed monetary decisions? Without Fed pumping 401k's would look like crap, and Obama doesn't get reelected in 2012. Was it all politics? No, I understand the argument for priming the pump. OTOH, I understand the argument for taking the bitter pill.

Fed policy isn't what is driving up the market. The interpretation of the Fed monetary policy by the broader public, the press, and some economists have been wrong since the beginning. Cheap money isn't being created by the Fed.

[BigDave]

The need and reliance on cheap money underscores how unstable our economy is. That's why I laugh when people say we're doing great. As for the article, is there any doubt that politics are tied into Fed monetary decisions? Without Fed pumping 401k's would look like crap, and Obama doesn't get reelected in 2012. Was it all politics? No, I understand the argument for priming the pump. OTOH, I understand the argument for taking the bitter pill.

Fed policy isn't what is driving up the market. The interpretation of the Fed monetary policy by the broader public, the press, and some economists have been wrong since the beginning. Cheap money isn't being created by the Fed.

Isn't that kinda like saying that if someone punches you, they didn't give you a bruise, rather, your body's reaction to the punch gave you the bruise?

[TheH2]

The need and reliance on cheap money underscores how unstable our economy is. That's why I laugh when people say we're doing great. As for the article, is there any doubt that politics are tied into Fed monetary decisions? Without Fed pumping 401k's would look like crap, and Obama doesn't get reelected in 2012. Was it all politics? No, I understand the argument for priming the pump. OTOH, I understand the argument for taking the bitter pill.

Fed policy isn't what is driving up the market. The interpretation of the Fed monetary policy by the broader public, the press, and some economists have been wrong since the beginning. Cheap money isn't being created by the Fed.

Isn't that kinda like saying that if someone punches you, they didn't give you a bruise, rather, your body's reaction to the punch gave you the bruise?

Not at all. Rates are low because of supply and demand. You see low rates in places that did not have QE/before QE, and you see low rates in Japan during the lost decades, before and after loose monetary policy. You can also look at U.S. treasury rates which fell after QE ends. The Fed is in a tough spot right now.

[USN_Hokie]

The need and reliance on cheap money underscores how unstable our economy is. That's why I laugh when people say we're doing great. As for the article, is there any doubt that politics are tied into Fed monetary decisions? Without Fed pumping 401k's would look like crap, and Obama doesn't get reelected in 2012. Was it all politics? No, I understand the argument for priming the pump. OTOH, I understand the argument for taking the bitter pill.

Fed policy isn't what is driving up the market. The interpretation of the Fed monetary policy by the broader public, the press, and some economists have been wrong since the beginning. Cheap money isn't being created by the Fed.

Isn't that kinda like saying that if someone punches you, they didn't give you a bruise, rather, your body's reaction to the punch gave you the bruise?

Another analogy might be: someone tells you that you're training your dog to run and hide from you, and responding that you're just teaching him to sit by kicking him each time he does...and then complaining that the stupid dog just doesn't understand your commands.

[awesome guy]

The need and reliance on cheap money underscores how unstable our economy is. That's why I laugh when people say we're doing great. As for the article, is there any doubt that politics are tied into Fed monetary decisions? Without Fed pumping 401k's would look like crap, and Obama doesn't get reelected in 2012. Was it all politics? No, I understand the argument for priming the pump. OTOH, I understand the argument for taking the bitter pill.

Yep.

[cwtcr hokie]

http://www.politico.com/story/2015/12/e ... tes-216272

maybe TH2 can explain it but the unemployment rate is about 5%, which is due to people that are not counted anymore since they are not on unemployment anymore, exhausted all benefits. How is that good? The labor participation rate has not moved much and eyeballing the job opportunities the second half of this year has been much less voluminous then it has been prior to that (unless you want a very low wage, low skill job, lots of those for employers to fill). And our gdp continues to hover around 2%, not anything close to robust.

But yes, things are great! Believe and it will be true

[HokieJoe]

The need and reliance on cheap money underscores how unstable our economy is. That's why I laugh when people say we're doing great. As for the article, is there any doubt that politics are tied into Fed monetary decisions? Without Fed pumping 401k's would look like crap, and Obama doesn't get reelected in 2012. Was it all politics? No, I understand the argument for priming the pump. OTOH, I understand the argument for taking the bitter pill.

Fed policy isn't what is driving up the market. The interpretation of the Fed monetary policy by the broader public, the press, and some economists have been wrong since the beginning. Cheap money isn't being created by the Fed.

So historically low prime rates don't help create cheap money?

[TheH2]

The need and reliance on cheap money underscores how unstable our economy is. That's why I laugh when people say we're doing great. As for the article, is there any doubt that politics are tied into Fed monetary decisions? Without Fed pumping 401k's would look like crap, and Obama doesn't get reelected in 2012. Was it all politics? No, I understand the argument for priming the pump. OTOH, I understand the argument for taking the bitter pill.

Fed policy isn't what is driving up the market. The interpretation of the Fed monetary policy by the broader public, the press, and some economists have been wrong since the beginning. Cheap money isn't being created by the Fed.

So historically low prime rates don't help create cheap money?

Historically low rates aren't a result of the Fed.

[TheH2]

http://www.politico.com/story/2015/12/e ... tes-216272

maybe TH2 can explain it but the unemployment rate is about 5%, which is due to people that are not counted anymore since they are not on unemployment anymore, exhausted all benefits. How is that good? The labor participation rate has not moved much and eyeballing the job opportunities the second half of this year has been much less voluminous then it has been prior to that (unless you want a very low wage, low skill job, lots of those for employers to fill). And our gdp continues to hover around 2%, not anything close to robust.

But yes, things are great! Believe and it will be true

I don't recall every claiming that a low participation rate is good. Not sure why you think I would.

[cwtcr hokie]

http://www.politico.com/story/2015/12/e ... tes-216272

maybe TH2 can explain it but the unemployment rate is about 5%, which is due to people that are not counted anymore since they are not on unemployment anymore, exhausted all benefits. How is that good? The labor participation rate has not moved much and eyeballing the job opportunities the second half of this year has been much less voluminous then it has been prior to that (unless you want a very low wage, low skill job, lots of those for employers to fill). And our gdp continues to hover around 2%, not anything close to robust.

But yes, things are great! Believe and it will be true

I don't recall every claiming that a low participation rate is good. Not sure why you think I would.

hey we agree, that is awesome. Do you agree the unemployment rate is a total balogney figure these days as the folks that were downsized and businesses that folded after the recession are now well out of benefits and no longer count in the figures? Thus why the participation rate becomes a much better barometer of our situation.

[TheH2]

http://www.politico.com/story/2015/12/e ... tes-216272

maybe TH2 can explain it but the unemployment rate is about 5%, which is due to people that are not counted anymore since they are not on unemployment anymore, exhausted all benefits. How is that good? The labor participation rate has not moved much and eyeballing the job opportunities the second half of this year has been much less voluminous then it has been prior to that (unless you want a very low wage, low skill job, lots of those for employers to fill). And our gdp continues to hover around 2%, not anything close to robust.

But yes, things are great! Believe and it will be true

I don't recall every claiming that a low participation rate is good. Not sure why you think I would.

hey we agree, that is awesome. Do you agree the unemployment rate is a total balogney figure these days as the folks that were downsized and businesses that folded after the recession are now well out of benefits and no longer count in the figures? Thus why the participation rate becomes a much better barometer of our situation.

No, I think the unemployment figure is relevant but I also think you need to look a the labor force overall. The slack in the labor force is part of the reason I believe we aren't close to having inflation.