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Dan A
The Real News Network
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Comments by "Dan A" (@DanA-nl5uo) on "Fed Comes to its Senses, Lowers Interest Rate" video.
All that will be achieved with the fed lowering interest rates to address uncertainty caused by the trade wars is to make a credit bubble which will make the inevitable crash worse.
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@Martial-Mat it was caused by home equity loans and the fed keeping interest rates artificially low. That is what caused the housing bubble. If sub prime morgans where not offered the value or houses wouldn't have continued to climb causing the crash. The problem with the current credit crisis is that businesses are taking out loans at low rates and using the money for stock buybacks which is just profiteering on the part of management and the share holders. But the business is left with the loan to payback and no additional value in the company to pay it back with. Unlike when Tesla takes loans to build new factories which will return value to the company in new capacity.
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@Martial-Mat where you sleeping thought the 2008 crash?
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@Martial-Mat they inflate the value of the stock. This making money for anyone who owns stock and sells after the buyback artificially inflates the stock value. It was considered illegal stock manipulation before Ronald Reagan deregulate that part of the market.
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