REPORT ABUSIVE REPLY
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Message Subject
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Oh Goodie, Feds say No End in sight for Interest Rate Hikes
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Poster Handle
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Anonymous Coward |
Post Content
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they say history repeats itself...
"Throughout the years preceding the 1929 Stock Market crash, the Fed did just that. The Fed set below market interest rates and low reserve requirements that all favored the big banks. The money supply actual increased by about 60% during this time. The phrase "buying on margin" entered the American vocabulary at this time as more and more Americans over-extended themselves to take advantage of the soaring stock market.
So what went wrong? It was in 1929 that the Fed realized that it could not sustain its current policy. When it started to raise interest rates, the whole house of cards collapsed. The Stock Market crashed and the bank panics began."
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