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LookingForEric

Patronize me again and I'll destroy you 😖

Country: Northern Ireland
This is just wrong I’m sorry.

Historically they usually cut after things have gone wrong (gfc, Covid) to fix them. Lowering rates does the opposite of harming the economy, the risk is it overheats it.

A huge part of why the real estate sector is in trouble is because rates are too high. Lowering them will be a life line.

As for the rest of it, that’s opinion I guess and you’re entitled to it. Crazier things have happened anyway.

I think you’re mixing up the raising of rates with cutting. They raised rates because covid etc caused major inflation.

When the fed starts cutting rates the markets usually tumble. This is historically what happens when rates get cut.

You’re right with what you’re saying with higher interest rates causing issues. But it isn’t as easy as cutting rates = good news, not straight away anyway. That’s why we’ve rallied quite hard in markets recently.

82DC6C0A-E984-4BBD-914D-A224BB932D15.jpeg
 

db10_therza

🎵 Edu getting rickrolled 🎵
Trusted ⭐

Country: Bangladesh

Player:Martinelli
I think you’re mixing up the raising of rates with cutting. They raised rates because covid etc caused major inflation.

When the fed starts cutting rates the markets usually tumble. This is historically what happens when rates get cut.

You’re right with what you’re saying with higher interest rates causing issues. But it isn’t as easy as cutting rates = good news, not straight away anyway. That’s why we’ve rallied quite hard in markets recently.

Sigh. No. Just… no.

They lowered rates to zero / subzero on Covid. They’ve been at historically low levels since the GFC anyway. They raised them to current levels because of inflation after the Ukraine war caused a supply side shock which triggered an inflationary spiral in the extremely accommodative environment with excess liquidity from the Covid era.

What your chart actually shows is that when rates are at zero stocks go on a tear. Anyway fk the charts just use your common sense. If people can borrow money for free you think they spend more or less? And is that good or bad for the economy?

I’m not gonna beat around the bush here, I do this for a living so I’m not going to explain myself more than this, you can take it or leave it.
 

LookingForEric

Patronize me again and I'll destroy you 😖

Country: Northern Ireland
Sigh. No. Just… no.

They lowered rates to zero / subzero on Covid. They’ve been at historically low levels since the GFC anyway. They raised them to current levels because of inflation after the Ukraine war caused a supply side shock which triggered an inflationary spiral in the extremely accommodative environment with excess liquidity from the Covid era.

What your chart actually shows is that when rates are at zero stocks go on a tear. Anyway fk the charts just use your common sense. If people can borrow money for free you think they spend more or less? And is that good or bad for the economy?

I’m not gonna beat around the bush here, I do this for a living so I’m not going to explain myself more than this, you can take it or leave it.

I also do this for a living and have a degree in economics…

You’re correct they lowered rates during covid. Inflation wasn’t just down to the Ukraine war, the amount of stimulus pumped into the economy was also a massive factor as you mentioned.

After a rate raising campaign like we’ve had (one of the biggest ever) you can ultimately expect recession after rates start getting cut.

I’m quite shocked this is what you do for a living, yet you believe FREE MONEY on top of 1 trillion+ credit card debt in America is a positive thing?

If you believe anything other than recession/boom cycle isn’t coming this year then you cannot do this for a living, sorry dude.
 

db10_therza

🎵 Edu getting rickrolled 🎵
Trusted ⭐

Country: Bangladesh

Player:Martinelli
I also do this for a living and have a degree in economics…

You’re correct they lowered rates during covid. Inflation wasn’t just down to the Ukraine war, the amount of stimulus pumped into the economy was also a massive factor as you mentioned.

After a rate raising campaign like we’ve had (one of the biggest ever) you can ultimately expect recession after rates start getting cut.

I’m quite shocked this is what you do for a living, yet you believe FREE MONEY on top of 1 trillion+ credit card debt in America is a positive thing?

If you believe anything other than recession/boom cycle isn’t coming this year then you cannot do this for a living, sorry dude.

Clearly being able to read and comprehend a post is not what you do for a living anyways…
 

field442

Hates Journalists Named James
Trusted ⭐
I also do this for a living and have a degree in economics…

You’re correct they lowered rates during covid. Inflation wasn’t just down to the Ukraine war, the amount of stimulus pumped into the economy was also a massive factor as you mentioned.

After a rate raising campaign like we’ve had (one of the biggest ever) you can ultimately expect recession after rates start getting cut.

I’m quite shocked this is what you do for a living, yet you believe FREE MONEY on top of 1 trillion+ credit card debt in America is a positive thing?

If you believe anything other than recession/boom cycle isn’t coming this year then you cannot do this for a living, sorry dude.

Is it a decent school and classification though? Getting a Desmond or a third might prove his point.
 

LookingForEric

Patronize me again and I'll destroy you 😖

Country: Northern Ireland
Is it a decent school and classification though? Getting a Desmond or a third might prove his point.

Took me long enough. 3 years through the OU and I got a first.

Look there’s a lot of opinion based stuff when it comes to this sort of convo. History tends to repeat itself. And “this time it’ll be different” never happens.

I mix my knowledge with my opinions based off historical context. Granted I shouldn’t just expect people to accept that and other points of view are appreciated @db10_therza
 

lomekian

Essays are my thing
A few of us with Economics degrees, eh? Worked in vaguely related fields for a bit before I ran away to the circus.

Ultimately, economics in action (at least at a policy level) is as much political as any sort of scientific. We all know that they put interest rates up to curb inflation, but whether that is a good idea or bloody stupid depends on what's causing the inflation and what those behind it want to achieve, the latter seldom being the wellbeing of the multitudes.

Reflecting the debate in question, whether an action is good or not depends on what you want. But then my personal stance is that neo-con style free-market economics is absolutely insane in terms of the majority's well-being, and Milton Friedman should have been locked up before he could find ways to justify the rich convincing everyone else to be their ***** as a sort of revenge for greater mass democracy.

My instinct that there will be a collapse of sorts, but it won't really affect football because it is both an opiate of the masses and a plaything of the super rich. Even when trouble comes, it will be propped up by those who would wish to dress as saviours while knowingly doing the opposite behind closed doors.
 

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