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US Fed Emergency Rate Cut 0.5% - DJIA Still Tanks


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Morons.

The emperor has no clothes!

Expect Lurch and his band of fools at the Bankrupt of England to probably try something similar.

Maybe they think that if they print enough of their toilet paper, it will kill Covid 19?

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Posted (edited)
5 minutes ago, Lord D'arcy Pew said:

Firstly lower interest rate so that people can buy more goods.

Now lower rates to buy goods that will not even be manufactured.

They can not print car parts or tins of baked beans. FAIL.

 

 

Indeed. The system is broken and has been for some time now. This would have blown up without the corona virus.

Have you also seen that the REPO scam is not working now. . . .

https://www.zerohedge.com/health/liquidity-panic-back-feds-term-repo-massively-oversubscribed-amid-market-turmoil

This all feels very 2008 like. Expect a big bank to go bust shortly. DB or HSBC are known to be in trouble.

The central banks are losing control. The US treasury yield curve is absolutely shocking.

Edited by bubbleturbo
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The lower the rates go the less many will spend, protection mode.....when/if required to stop working to protect own health and others health having no income, will spend even less..... can't go out, spend less and less......nothing to buy or worth buying..... won't be buying.?

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25 minutes ago, winkie said:

Not long now and money will be free....?

Money is super easy to get hold of, until you try to earn some by working.

Edited by Dorkins
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1 minute ago, Dorkins said:

Money is super easy to get hold of, until you try to earn some by working.

That is why much of it will not be repaid.......the risk is priced into the interest rate/fees charged for debt since money is virtually free.?

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57 minutes ago, Dorkins said:

Money is super easy to get hold of, until you try to earn some by working.

Tell me about it. I spoke to an agency couple weeks back and the tone of the conversation was a 40k salary required much experience as it was high ?

I asked if the agency Pimp had seen the cost of housing in relation to where the job is based.

The reply was salary was offered in relation to skills and living costs was irrelevant ?

 

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Guardian

Nomura: Bank of England might cut rates this week

Heads-up. Analysts at Nomura have predicted that the Bank of England will make an emergency cut to UK interest rate before the end of this week.

In a note, just released, they say cutting rates from 0.75% to 0.5% would buy the Bank time to “collect its thoughts” before its scheduled meeting later this month.

At that point the Bank could then make a further decision to lower interest rates again if deemed necessary (another 25bp, or even 35bp if it wanted to take rates down to what we think would be the lowest the Bank would be willing – i.e. 0.10%) and at the same time deliver some sort of easing targeted to addressing issues raised by the virus.

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5 minutes ago, Simhadri said:

Guardian

Nomura: Bank of England might cut rates this week

Heads-up. Analysts at Nomura have predicted that the Bank of England will make an emergency cut to UK interest rate before the end of this week.

In a note, just released, they say cutting rates from 0.75% to 0.5% would buy the Bank time to “collect its thoughts” before its scheduled meeting later this month.

At that point the Bank could then make a further decision to lower interest rates again if deemed necessary (another 25bp, or even 35bp if it wanted to take rates down to what we think would be the lowest the Bank would be willing – i.e. 0.10%) and at the same time deliver some sort of easing targeted to addressing issues raised by the virus.

Still won't make prices go up.

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I think the FOMC's cut in the federal funds rate is more to do with exchange rates than the stock market.  The dollar index was close to a 34-month high of 100 before this cut.

Edited by Will!
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2 hours ago, bubbleturbo said:

Dow currently down over 500 points, even after Fed Powell shot his load mid morning (US time).

Central banks are quickly going from omnipotent to impotent.

I expect Fed PPT to be active in the market late afternoon US time as they were on Friday buying everything to try and stop it.

 

3 hours ago, winkie said:

Not long now and money will be free....?

When does it have zero value?

Suppose if I'm willing to burn a $1 Trillion note to keep warm that might prove the case in point,

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1 hour ago, longgone said:

Tell me about it. I spoke to an agency couple weeks back and the tone of the conversation was a 40k salary required much experience as it was high ?

I asked if the agency Pimp had seen the cost of housing in relation to where the job is based.

The reply was salary was offered in relation to skills and living costs was irrelevant ?

 

Typical recruiter, tell them to get lost.

In my sector we regularly pay people in the late twenties early 30s circa £100-120k OTE.

That is the cost of living in London! 

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3 hours ago, Lord D'arcy Pew said:

Firstly lower interest rate so that people can buy more goods.

Now they lower rates to buy goods that will not be produced.

 

They can not print car parts or tins of baked beans. FAIL.

 

 

Sorry to be nerdy Pew, but you can print car parts these days, cans of baked beans are however safe at the moment, but I take your point.

Geek-Speak-3D-printing-car-parts.jpg

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4 hours ago, scottbeard said:

2020 is set to be fascinating 

And possibly 2021 because we may get Sanders and Brexit is coming too. The next couple of years are going to be among the most fascinating years.

Edited by lombardo
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1 hour ago, Mikhail Liebenstein said:

Typical recruiter, tell them to get lost.

In my sector we regularly pay people in the late twenties early 30s circa £100-120k OTE.

That is the cost of living in London! 

Indeed i know well what the living costs in London are. Point is who is bothering to do these jobs i know a lot of workers earn less and a lot more. i`m sure the high earners are in sales or in very high demand occupations but there is a line when what is the point. 

you can work as a pot man picking up glasses and get 22.5k now minimum wage.   i thought asking for a low amount i.e 45k would make reentry back to work easy but they really don`t want to pay anything someone mentioned learning security or aws azure but the pay is still awful for London.   

Seems like they are recruiting gullible young people so the parents are picking up the living costs. earning 100k  allows around 400k of mortgage debt that buys basics in london. 

 

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22 minutes ago, longgone said:

Indeed i know well what the living costs in London are. Point is who is bothering to do these jobs i know a lot of workers earn less and a lot more. i`m sure the high earners are in sales or in very high demand occupations but there is a line when what is the point. 

you can work as a pot man picking up glasses and get 22.5k now minimum wage.   i thought asking for a low amount i.e 45k would make reentry back to work easy but they really don`t want to pay anything someone mentioned learning security or aws azure but the pay is still awful for London.   

Seems like they are recruiting gullible young people so the parents are picking up the living costs. earning 100k  allows around 400k of mortgage debt that buys basics in london. 

 

Young graduates in London start on much less than that, two friends kids started last year one on £22k one on £27k (EY graduate trainee). However, the starting pay is pretty meaningless as progression is rapid if you prove yourself.  

For most the starting pay is irrelevant, the issue is does it  provide either a route to riches within the company or the skills required to move on after a year or two. Pot man doesn't really qualify on either count.

 

 

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8 hours ago, Confusion of VIs said:

Young graduates in London start on much less than that, two friends kids started last year one on £22k one on £27k (EY graduate trainee). However, the starting pay is pretty meaningless as progression is rapid if you prove yourself.  

For most the starting pay is irrelevant, the issue is does it  provide either a route to riches within the company or the skills required to move on after a year or two. Pot man doesn't really qualify on either count.

To set that in context, my starting salary was £19,500, but that was 24 years ago!  I'd also had £4k of student bursary from my employer that same year whilst still an undergrad. Salary was then put up to £23k in April the following year plus a small bonus element. 

Essentially the grad salaries have gone nowhere in 20 years, though I could say the same of the FTSE. 

Edited by Mikhail Liebenstein
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10 hours ago, Mikhail Liebenstein said:

 

When does it have zero value?

Suppose if I'm willing to burn a $1 Trillion note to keep warm that might prove the case in point,

In that case you would no longer have faith in it.......how we value money boils down to having faith in it as a means of exchange.....?

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8 hours ago, Confusion of VIs said:

Young graduates in London start on much less than that, two friends kids started last year one on £22k one on £27k (EY graduate trainee). However, the starting pay is pretty meaningless as progression is rapid if you prove yourself.  

For most the starting pay is irrelevant, the issue is does it  provide either a route to riches within the company or the skills required to move on after a year or two. Pot man doesn't really qualify on either count.

 

 

Point exactly those were the starting rates as mentioned already 20 years ago. I'm not a graduate and was on more than that.

Proving yourself is only going to give you the starting money had wages kept up with living costs today and you are still going to be way way down with HPI included.

Most jobs in the london area Are essentially Worthless time wasting exercises graduate or no graduate.

What is the draw of london when expectancy for most livings standards is dire.

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  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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