The Dow is down nearly 500 points

[DemocratSinceBirth]

https://www.democraticunderground.com/?com=forum&id=1002

[WeekiWater]

1. You link back to GD.

Is that a witty way of saying "and now back to your regularly scheduled program"?

Pretty clever if it is.

[Iliyah]

2. I wonder why?

I've read on the DU that these interest hikes will improve the chances of "no" recession.

?????????

Personally, I see the opposite effect from what I just wrote above. I mean my credit card interest monthly will go up, ugh. The cost of living is raising, including car prices and homes.

[still_one]

3. Interest rates were at 0% being artificially kept there because of the economic implosion

caused by the policies of George W Bush. After 8 years of artificially low interest rates to help stimulate the economy and supply liquidity to the system, it is time for interest rates to slowly go up, since all indicators say the economy is doing well

[SWBTATTReg]

4. Usual reason to hike the interest rates is to slow an overheating economy, and keep ...

inflation down. I don't know about this particular fed. guy in control of the fed now, but seems to be continuing fed policy of using interest rates (and thus money supply) to rein in inflation.

However, w/ the extra unneeded boost that the 2018 tax cut and jobs bill gave to the economy, it'll tend to overheat the economy just as the last economic cycle (since 2007) is winding down (10 years so far, all ushered in by Obama actions at tail end of Bush year). Going to be tricky in fine tuning since you have extra jazzing of the economy when it didn't need it.

Unfortunately, the bad thing about this is the higher interest rates paid for credit cards, mortgages (adj) etc. The other side of the coin is that perhaps lots more interest will be paid to all of the retirees and others 401K and so forth in interest income. Returns on CDs has been crappy.

[still_one]

7. Exactly. The interest rates were being artificially kept low because of the economic implosion

but that becomes inflationary after the recovery if they continue to keep interest rates too low

Problem is the asshole in the WH started a trade war so that complicates the whole situation, and prices increase because of that

[SWBTATTReg]

9. You make another good point that I didn't think of. Good catch w/ neg. impacts of tariffs...nt

[still_one]

10. What you brought up SWBTATT is there are a lot of factors involved

[Renew Deal]

5. Again?

[Adrahil]

6. I think this market found its top some time ago.

We're in a bear market now, I think.

Thank goodness I moved my daughter's college savings out of the market earlier this year. It would be taking a beating otherwise!

My 401K will be fine... dollar cost averaging and I'm still 15 years from retirement.

[yortsed snacilbuper]

11. 15 years from now donald junior will be serving his second term!

[Adrahil]

12. You take that back! ;) NT

[marble falls]

8. Even more winning!!!

[Yo_Mama_Been_Loggin]

13. 351 points at present

What Trump would call a big beautiful correction.