dow 27000

Brownslave688

You want a toe? I can get you a toe.
We are using the market as an indicator of the overall economy. The question is if the next downturn is going to be a market correction or another bubble burst. I'm worried the GOP doesn't have another answer having already cut taxes.
The plan should only be to let it run its course.

Should of been the same answer bush and Obama had but government can't seem to get out of its own way.

Bear markets are natural as our recessions.
 

Ms.PacMan

Well-Known Member
What's the move when the market turns down? Already did tax cuts. We're currently riding the longest growth streak in market history, it won't go up forever.

When the economy is in a recession the Federal Reserve lowers interest rates to juice the economy. Lower interest rates make it easier for businesses to borrow money and expand. Lower interest rates make people want to buy houses and use credit to buy stuff.

The Federal Reserve then slowly starts raising interest rates again so they will have have room to cut rates if they need to in the future. The byproduct of raising interest rates is inflation or a slowing of the economy because people will spend less when money costs more to borrow and the things you buy cost more.

Some inflation is okay and their current target is 2%.

So right now the Fed is slowly raising interest rates until the economy cools off a little and they use inflation (the cost of goods and services) as a guide to tell them when to quit.

The Fed is taking time in between each interest rate hike to make sure that they have a correct gauge on inflation. If they misjudge and raise the interest rates too fast causing inflation to spike then the economy will suffer - people will start tightening their belts, businesses will suffer which causes lay-offs, stocks will drop because business profits are down, etc. and the Fed then lowers interest rates and the cycle repeats.

So right now the Fed needs to keep raising interest rates, without causing too much inflation and hurting the economy.
 

Jkloc420

Do you need an air compressor or tire gauge
We are using the market as an indicator of the overall economy. The question is if the next downturn is going to be a market correction or another bubble burst. I'm worried the GOP doesn't have another answer having already cut taxes.
if the market drops 3000 points it is still up 5000 points, markets go up and markets go down.
 

vantexan

Well-Known Member
just like the temperature does in climate change.......
Saw where scientists are now saying due to magnetic waves, solar flare activity, and some such, we are likely entering a "mini ice age" that'll last 30 years. Due to global warming it won't cool us off too much, just give us a 30 year break until the warming resumes. Yep, they moved the goalposts. We have 30 years to implement socialist policies that'll save us before the impending doom.
 
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