by Ace
The Fed raised interest rates by 0.75% again. This is the third time they’ve raised it by three quarters of a point.
The Dow fell 522 points by the close.
The Atlanta Fednow tracker for GDP projection has reduced its forecast for the third quarter to almost zero — 0.3%.
They’re trying to avoid the psychological shock of a full one point hike.
The media is offering headlines suggesting it’s the Fed who is “taking the economy off the side of a cliff.”
No, it was Joe Biden and the Democrat Congress who did that. They caused this runaway inflation. When you set a fire, the next thing that happens is that the fire department comes to put it out — and you can’t complain when they spray water everywhere and ruin all your furniture by soaking it.
But that’s how the media is playing it. It’s The Fed’s fault!
Why is The Fed ruining Joe Biden’s wonderful economy?!!SMALL BUSINESS PLAYBOOKThe Fed just raised interest rates by another 0.75%, putting Main Street economy ‘dangerously close’ to edge of lending cliff
That’s the unfortunate intention. Biden pumped a trillion plus dollars of excess dollar bills into the economy. And then, just a month ago, he pumped in another $740 billion.
The only way the Fed knows how to correct for this is to raise interest rates so high so as to make it hard to borrow money. This makes it hard for banks to inject new money into the economy — borrowed money is basically money taken from the future and put into circulation in the present. By reducing the amount of money that can be “borrowed from the future,” the Fed hopes to offset the trillions of extra dollars Biden has already flooded the economy with right now.
This is a painful process. It’s ugly. It’s miserable.
Which is why governments usually attempt to not unleash toxic hyperinflation upon their country.
But your leftwing propaganda lugenpresse is here to tell you: It’s all the Fed’s fault. They’re the ones doing this!Small business owners have not faced lending costs reaching into the double-digit percentages in decades.Small Business Administration loans could rise to above 9% by year-end if the Federal Reserve continues to raise rates in its battle against inflation.
Rates should never be the sole determinant of business growth strategy and a decision to source new capital, but lending costs are nearing a point where monthly cash flow may not be enough to cover debt repayment in a softer economy.
…
If the Federal Reserve’s FOMC next moves match the market’s expectation for two more interest rate hikes by the end of the year, small business loans will reach at least 9%, maybe higher, and that will bring business owners to a difficult set of decisions. Businesses are healthy today, especially those in the rebounding services sector, and credit performance remains good throughout the small business community, according to lenders, but the Fed’s more aggressive turn against inflation will lead more business owners to think twice about taking out new debt for expansion.
Partly, it is psychological: with many business owners never having operated in anything but a low interest rate environment, the sticker shock on debt stands out more even if their business cash flow remains healthy enough to cover the monthly repayment. But there will also be more businesses finding it harder to make cash flow match monthly repayment at a time of high inflation across all of their other business costs, including goods, labor, and transportation.
“Demand for lending hasn’t changed yet, but we’re getting dangerously close to where people will start to second guess,” said Chris Hurn, the founder and CEO of Fountainhead, which specializes in small business lending.
“We’re not there yet,” he said. “But we’re closer.”Businesses which are struggling will find that they can only get loans at high interest rates. They will have to choose between borrowing at high interest rates — which may be unprofitable — or just shutting down.
Businesses which are looking to expand will face the same choice: Borrow at a cost which will make expansion unprofitable, or forgo expansion? Many will chose not to expand in this borrowing climate.
People thinking about starting up a business face the same choice, but with an even tougher bite: Starting up a business is always tough. Many businesses do not turn profitable for the first couple of years, and many business owners do not pay themselves a salary during this period. They live on borrowed money.
But the cost of borrowed money is high, and going up still further. So the costs of starting up a business is very high.
Many people thinking about starting a business will therefore choose not to do so, and those who choose to give it a go will find it even more painful than they expected.
But, again:
The Atlanta Fed came out today with a prediction that the third quarter GDP will be negative again pushing us into a deep recession.
Damnit, right when I am trying to sell my house. This lying, corrupt shitbag is causing interest rates to spike.
Remember Greg used to constantly claim Trump was “overheating” the economy, which would result in recession. No, all Trump did was get the government out of the way of an economy still suffering from a residual recession due to Obama’s taxes and regulations. There was no “overheating”, just growth.
But idiot Biden couldn’t let anything Trump had done remain. All he had to do was get out of the way and take credit for the massive rebound from the shut-down. Instead, Pelosi had to spend trillions and trillions to feed the greed of Democrats who buy votes and line their pockets with taxpayer money, paying people not to work, paying people not to pay their rent. Added to a supply side that cannot catch up with demand (thanks to so many people being paid not to work, people fired for vaccine mandates and not wearing masks).
But, no one could tell these socialists anything; throwing money at problems is their default reaction. Democrats should not be allowed any decisive power over an economy anyone wishes to survive.
I said he would guarantee a bust by keeping emergency stimulus measures in place to induce a binge, and that’s precisely what he did. He cut taxes while spending like a drunken sailor, sending deficits through the roof; he pressured the Federal Reserve to keep interest rates near zero long after they should have begun a slow and steady increase, encouraging irrational levels of consumer debt.
We predictably got the biggest run-up of national debt in history and run-away inflation, but it enabled another MASSIVE upward transfer of wealth. The top 1 percent now literally own 1/3 of the entire wealth of the nation.
You’ve been scammed by the guy who was already known as “The King of Debt” before he every walked into the White House. He ALWAYS walks away leaving others holding an empty bag.
Now New York is going to indict him for tax and bank fraud. Everybody knew, but nobody could touch him while he was in office. They couldn’t even examine his tax records. His political appointees helped him with that.
He’ll predictably claim political persecution, but the fact is that lying about the value of his properties for tax and loan purposes has been his standard operating procedure for years.
He’ll predictably claim political persecution, but the fact is that lying about the value of his properties for tax and loan purposes has been his standard operating procedure for years.
What party got injured ?
Where will this 1/4 billion go?
This is a civil suit, NY must prove damages. There were no Bank auditors? There were no Tax auditors?
Property values change with economic conditions.
Your assertions are below moronic.
In Trump’s case they changed depending upon who he was reporting them to, and for what purpose.
The injured parties were New York residents who don’t cheat on their taxes. People like Trump assume that everybody lies and everybody cheats, and that those who don’t are suckers—like people who go into the military.
My, how you love to say that. Over and over and over. Yet never once do you mention that out of the 10 wealthiest people in the U.S., six of them are Democrats. How did that happen? And who did Zuckerburg and Bezos encourage to shut down mom and pop businesses during the Kung flu while Amazon raked in so much money it should have been illegal.
And since you fancy yourself such a Legal Eagle, perhaps you can provide the federal statute that says lying about your personal wealth is illegal. You clearly don’t understand how the business world works when it comes to using properties as collateral. Good gracious, Comrade Greggie, must you prove your stupidity with such frequency?
Trump is being sued for fraud by the State of New York, not by the federal government.
Fine, give the State of NY statute?
You whine about all those Super rich democrats How in just 3 years did a ditzy bartender get nearly 30 million in wealth on 175K salary?
The Obamas from 1.7 million in 2007 to well over 100 million while purchasing 3 mansions?
How should I know? I’m not a lawyer. The acts of fraud and misrepresentation are explained in great detail in the 222 page Civil Fraud Lawsuit. New York wants the estimated $250 million the defendants benefited by fraud, wants them barred from holding corporate office in New York, and wants them barred from conducting further real estate transactions in the state for a period of 5 years. Florida can look out for itself.
In other news, the 11th US Circuit Court of Appeals just unanimously ruled that the DoJ can continue to examine classified documents removed from Mar-a-Logo. Two of the three presiding judges are Trump appointees.
This isn’t partisan politics. It’s an entirely legitimate investigation of a serious matter of national security, and due process of the law.
Mike Davis: Letitia James’ Lawsuit Against Trump is ‘Completely Frivolous Partisanship’ (rumble.com)
FULL OF TISH: Watch Supercut of NY AG Letitia James’ Anti-Trump History
This is gregs soul mate. See wakes up every day and the first thing that comes into her mind is President Trump just like the stooge greg here.
How many times is this “the walls are closing in”? Pathetic people let other pathetic, desperate, ambitious people make fools of them.
And you were wrong. There was no inflation, no recession, no crash under Trump. His tax cuts increased revenues and, if you were to review your civics, the HOUSE does the spending and Pelosi controlled the House.
We’ve seen the largest increase in debt under Obama and idiot Biden. Idiot Biden has caused record inflation and a recession. Trump succeeded, Democrats fail. Democrats always fail.
New York has no case. If they did, they would have brought criminal charges, not civil. The politically ambition James is nothing but a publicity whore playing to her hateful base. She is behind in the polls and hopefully gets kicked out of office. The only scamming being done is by Democrats routinely scamming the most stupid among us who constantly need their obsession to hate.
What an embarrassment.