40 Burst results for "Interest Rates"

Fresh update on "interest rates" discussed on Bloomberg Best

Bloomberg Best

01:12 min | 5 hrs ago

Fresh update on "interest rates" discussed on Bloomberg Best

"He's cofounder and co chairman of oaktree capital And he had a great sit down with our romaine bostick at the milken institute global conference And marks tells romaine he's not even sure that normalization when it comes to the fed is a done deal yet Let's listen in The question is whether we will normalize and by normalize I mean will the fed and the treasury take their hands off The economy and let it run itself or will they continue to drive it I like to see I think I'd like to see an economy that did its thing uncontrolled by the fed I'd like to see what I call naturally occurring interest rates because we all believe that the free market is the best allocator of resources I'd like to see a free market What's the balance between a free market and government necessity during a pandemic during a recession Well look the actions that the fed and treasury took last year had some serious possible negative consequences The worst of which could still be a strong bout of inflation And igniting of inflationary expectations which would then become self fulfilling So that's a very negative possibility On the other hand you can't argue that those actions should not have been taken There are a lot of people who agree that what they did was certainly right There's a lot of disagreement about how long they've kept some of these measures in place Have we reckoned with the ramifications of keeping the stimulus out there too long Most people if they were knowledgeable and if a vote were held would prefer low interest rates to high Business does better People can buy stuff cheaper rates on mortgages go down the politicians can spend more money The treasury has less trouble paying the debt service The only thing is it's low rates it's kind of like ice cream It's such a thing as having too much And so not too many people want to see high rates but if we keep rates artificially low then perhaps we overstimulate perhaps we have inflation perhaps the dollar weekends perhaps the dollar loses its role as the global reserve currency So there has to be a balance You've invested through quite a few market cycles Quite a few economic cycles The one that we're in right now does that make your job or the job you used to have more difficult or easier It's tough at the time We're in an unusual circumstance First of all the cycle we've gone through in the last 18 months of the pandemic was not really a normal cycle Normal cycles in my opinion are the result of people becoming too optimistic and overshooting intrinsic value fair value And then a correction toward fair value but it carries through to underpriced and then people get too pessimistic and then a correction back toward fair value but it overshoots and heads to excessive So excess and correction excess and correction is the normal source of a cycle This cycle had nothing to do with the economy This was like a meteor hitting the earth from outer space The pandemic and then the government policies government fed policies undertaken to correct it I saw a pandemic epidemiologist from Harvard at the very beginning of the pandemic And he said we have three things We have facts analogies to prior experience and supposition But in the case of the pandemic there are no facts There are no prior experiences We have only supposition And I think that's where we have been So that has made lifetime Right Well then as an investor how do you determine intrinsic value How do you determine value at all Well you try to figure out what the cash flows will be You discount those back to the president at a fair discount rate You apply windage for uncertainty et cetera That's what you normally do Normally normally do But of course first of all we have the lowest discount lowest interest rates in history which if interest if something grows faster than the discount rate then in theory it's worth infinity So it's hard to operate in a world where things are worth infinity And by the way there are people who are willing to pay infinity for them Makes it hard on a value investor And then of course since it's not a normally occurring economic cycle it's harder to get your hands on it Normally normally when we're at the beginning of an economic upcycle and we're only a year in You're usually pretty low in terms of the market Now we have the market which is high economy is getting going So I say in the first year of the recoveries But you could say well the bad news is that the economy hasn't done much and stocks are highly valued already or you could say the good news is that stocks are highly valued but the economic recovery lies ahead And investing is full of on the one hand and on the other hand and I think this is a great example You've been listening to Howard marks cofounder and co chairman of oaktree capital with Bloomberg's romaine bostick at the milken institute global conference And.

Oaktree Capital Romaine Bostick FED Treasury Milken Institute Romaine Government Policies Government Harvard Howard Marks Bloomberg
Fresh update on "interest rates" discussed on Bloomberg Businessweek

Bloomberg Businessweek

01:19 min | 9 hrs ago

Fresh update on "interest rates" discussed on Bloomberg Businessweek

"So auto prices went up but you know it's interesting is there was one period in there I think it was in 46 or 47 We're inflation actually was at 20% But bond yields never went above two and a quarter Doesn't quite make sense does it Well I think we're living in it today So that's interesting So what's the interest rate environment Can we make a projection here Scott Longer term is there's something different about the relationships here Well you know I love the phrase that there's something different I'm a great hat I love the Ken rogoff and Carmen rhinoceros this time It's different And when I met Ken rogue I had to ask him where did this title come from It's never different To your point I don't think it's different from the standpoint of what I just talked about in the periods of time that we're talking about where you had lots of government spending lots of money printing And then you transition But there is something fundamentally different in that we now have socialized credit We have now made the Central Bank the backstop for everything This is really unusual because central banks were never designed for this The Federal Reserve was.

Scott Longer Ken Rogoff Carmen Rhinoceros Ken Rogue Central Bank Federal Reserve
Fresh update on "interest rates" discussed on Bloomberg Businessweek

Bloomberg Businessweek

00:58 min | 9 hrs ago

Fresh update on "interest rates" discussed on Bloomberg Businessweek

"Coin Okay but we're talking about something that a lot of people think is a joke Well is she a coin was a joke created to mimic Dogecoin which was a joke I mean cancel each other out Yeah well I don't know It's a second derivative Joker Cryptocurrency but it just shows you how much cash is out there how it's lifting asset prices It was asked that the Federal Reserve to do a thing on bubbles And what markets that I think were in bubbles And I went through every market I could think of And the one I said sports memorabilia is in a bubble Baseball cards are clearly in a bubble But you look at stocks Are they in a bubble Not with interest rates where they're at And is it so much of it's got kind of a bounce back from falling off a cliff and things recovering Or do you think no We've done that and then we've got a little bit more Well I think you know normally at this point in a recovery I would say oh you know we're kind of in the second or third inning Like when the Dodgers are winning the World Series But This is like we went right to the 5th inning The incredible rally that we've got coming out of the pandemic And the amount of stimulus people compare this to a war The pandemic was a war And so I've gone back and I've studied wars And when you get there is an interesting corollary When you have a major war like the First World War the Second World War right after the war is over And there's been all this stimulus from defense spending and money printing You get a spike.

Federal Reserve Baseball Dodgers
Fresh update on "interest rates" discussed on Bloomberg Radio New York Show

Bloomberg Radio New York Show

01:36 min | 13 hrs ago

Fresh update on "interest rates" discussed on Bloomberg Radio New York Show

"Return on invested capital It's extremely high You're seeing companies are 15 20 25% are return on equity And they're weighted average across the capital is really low the cost of equity because I don't have the stock market It's across equities cheap And the way they finance themselves the real rates that the treasury market trades and it's not really relevant It's where they finance themselves And today on the debt market and the equity market there's a historic bid for yield in the market that's not going away anytime soon somewhat because of the demographic Someone who's about the fed did So as long as that weighted average cost the capital stays reasonable And we think it will Rachel move up a bit from here I still think front end should end interest rates are going to move up a bit But boy as long as companies continue to end the demand continues to be what it is in the economy I'm not that concerned about small moves in real rates Listen if inflation moves dramatically higher and then nominal interest rate moves significantly higher forcing up companies cost to borrow That's significant But I think we're far far from that So Rick you invest an awful lot of money on behalf of a lot of people Give us some investment advice here I'm not going to ask you specific stocks or bonds But tell us about what we should do with all you said in terms of investment Because you are on both sides You swing both ways You're here right You handle both the fixed income and the equity side What does all that tell us about for example the balance between fixed equity and fixed income I'm sorry inequities So first of all I think you got to look at companies operating leverage and think about what this means So I want to be a lender I want to buy their bonds by their stock So what happens when you get inflation higher And if companies have pricing power in their business and they can price it through many other expenses are fixed Do you think they signed long-term leases That's a fixed expense It's not subject to inflation A number of their sensitive fix So what happens is if you get pricing power and some portion of your expense is fixed and so all you're doing is your variable costs go up You're actually benefiting Rick it's really great to talk with you always Thank you so much Thank you That is Rick reader of BlackRock who does invest an awful lot of money on behalf of an awful lot of people.

Treasury Rachel FED Rick Rick Reader Blackrock
Fresh update on "interest rates" discussed on Bloomberg Best

Bloomberg Best

02:24 min | 19 hrs ago

Fresh update on "interest rates" discussed on Bloomberg Best

"The same vaccine when getting a booster speaking to CNN Fauci noted it just makes sense to go with what you originally received but he mentioned circumstances may change for some people and mixing and matching is also fine The rate of illegal immigration at the southern border is slowing but still at record numbers Customs and border protection is out with the September numbers There was a 9% decrease in encounters compared to August about one quarter of the migrants caught had at least one prior encounter with the border patrol September is the last month of the fiscal year which ends with more than 1.7 million illegal immigration busts That's the most on record I'm Lisa Taylor A former associate of Rudy Giuliani is being found guilty on campaign finance charges Lev Parnas of Florida businessman with Ukrainian connections was found guilty of a $325,000 donation in 2018 to a super PAC supporting former president Trump and then lying about it I'm Brian schuck And I'm Charlie pellet At Bloomberg world Hank waters the Dow climbed to a record but the S&P 500 Index slumped after fed chair Jay Powell signaled some concern about inflation as for the interest rate backdrop and the Federal Reserve Evan Brown is head of multi asset strategy at UBS asset management We've seen a repricing of Central Bank policy now a couple of hikes priced in for next year a couple of eggs for 2023 So the markets are adjusting but the growth dynamic is so strong that I think we can get through that Evan Brown of UBS while a busy week for earnings is behind us we heard from major airlines including United American and Southwest so what is the broader outlook Elaine Becker is an analyst with cowan It's been over the past I would say 6 or 9 months We've seen a huge recovery in domestic air travel And we expect that to continue Business travel should come back in 2022 Helene Becker of cowan The red ink keeps flowing at the Treasury Department in Washington a gaping budget gap that story from Bloomberg's Vinnie del giudice The U.S. government posted the second largest annual budget deficit on record in fiscal 2021 $2.8 trillion pandemic relief sustain the treasury's massive borrowing At the same time historical low interest rates have kept costs down Ten year treasury note yields averaged about 1.4% below the past decades roughly 2.4% If any doubt Judas Bloomberg radio Johnson & Johnson has lost the first round in a bankruptcy spat over tau claims with a judge ruling change a talc lawsuits can proceed for now Stocks mixed S&P down four down one tenth of 1% the Dow to record up two tenths of 1% NASDAQ down 8 tenths of 1% Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries I'm Charlie pellet.

Evan Brown Lisa Taylor Lev Parnas President Trump Charlie Pellet Brian Schuck Bloomberg World Hank Fauci Jay Powell UBS FED Major Airlines Rudy Giuliani Elaine Becker CNN Helene Becker United American
Where Are the Fact Checkers on Biden's Budget Speech?

Mark Levin

01:53 min | 2 weeks ago

Where Are the Fact Checkers on Biden's Budget Speech?

"A Democrat the Republicans the media all sound alike because they do not want Slashing the federal budget And so they wrap it all up in not paying our debt defaulting on the debt because they're lying Here's Joe Biden at The White House today cut 5 go The folding on the debt which secretary Yellen said could happen at any day after October the 18th as we run out of money means that social security benefits will stop Okay so now you know he's a liar The guy can't help it It's in his DNA It's in the little bit of tissue that's left in the cranium Go ahead The service members will stop No it won't And where are the fact checkers They're in the tank Go ahead And if it's the veterans will stop No they won't Go ahead Four The failure that raises that the more undermine the safety of the United States treasury securities Not long It will require you to make priorities and slash all the other programs and personnel Within the $3 trillion budget It's more than 3 trillion really 320 billion a month for 12 months The fact it's much more than 3 trillion Go ahead Bretton reserve status of the dollar as the world currency and the world relies on Downgrade America's credit rating and result in a rise in interest rates for families talking about mortgages auto loans actually that will happen when God forbid if Your spending

Yellen Joe Biden White House United States Treasury Downgrade America
Why Democrats Love Inflation

The Charlie Kirk Show

01:25 min | 3 weeks ago

Why Democrats Love Inflation

"Have made the argument here on this program that many democrats want inflation. Inflation helps the corporate class and allows them to pay off their debts. Did you know that. Us corporations expanded their balance sheets. By barring six hundred billion dollars in the last year they knew that interest rates will never get the slow again and so every day companies and especially the fortune one hundred companies. They went on a borrowing spree. They borrowed more money. Then they have in recent memory because they knew that all of a sudden if inflation is going to kick in if inflation is going to occur. You want to have as much debt as you possibly can manage or almost more than you can manage. Because then the eight percent inflation radio or the six percent inflation rate a year will actually minimize the debt burden. You have you might as well live it up while you can. Rich people do very well when inflation comes if you own physical assets land gold silver or you're able to move money quickly especially liquid. You'll do fine in the midst of inflation. The people that inflation hurts the most our young people students and middle class workers

United States
Federal Reserve Holds Interest Rates Steady, Says Tapering of Bond Buying Coming ‘Soon’

Wall Street Breakfast

00:53 sec | Last month

Federal Reserve Holds Interest Rates Steady, Says Tapering of Bond Buying Coming ‘Soon’

"So the fed yesterday avoided a shock to equities in. What's already been a week. September but will investors remained. Comfortable with the hawkish tilt as widely expected members pulled forward rate hikes expectations on the dot plot and fed chief. Jay powell telegraphed a tapering announcement at the next meeting in november. But it's worth pointing out. He said the same thing about this meeting the tapering Once it does happen is expected to end around mid twenty. Twenty twenty two. That's according to powell's comments and a off could occur after that but it's basically not going to be until twenty twenty three. At least that looks like the most likely timing for the start of rates judging by his comments and the dot plot.

Jay Powell FED Powell
Fed foresees a potential rate hike as soon as next year

AP News Radio

00:55 sec | Last month

Fed foresees a potential rate hike as soon as next year

"The federal reserve is signaling it may start raising its benchmark interest rate sometime next year such a move would be earlier than envisioned three months ago and assign the fed is concerned that strong inflation pressures may persist for now though the central bank is keeping its benchmark interest rate at zero two a quarter percent and says it expects that target range will be appropriate until labor market conditions reach maximum employment and inflation is on track to moderately exceed two percent for some time at the same time the fed says it will likely begin slowing the pace of its monthly bond purchases later this year if the economy keeps improving the fed cites progress on could nineteen vaccinations and strong policy support as key factors in the economic recovery and strengthening job market it also notes improvement in the sectors of the economy hit hardest by the pandemic Ben Thomas Washington

FED Ben Thomas Washington
"interest rates" Discussed on Marketplace Morning Report with David Brancaccio

Marketplace Morning Report with David Brancaccio

05:25 min | Last month

"interest rates" Discussed on Marketplace Morning Report with David Brancaccio

"I am. Hollywood hosts marketplace tech a show. That helps you understand the digital economy. How a more of the country get access to better internet. What new jobs will artificial intelligence creates or destroy and what tools will help us. Survive are already changing climate. We tell the stories behind the technology in our lives and every weekday. Our podcast brings you insight. You won't hear on the radio checkout marketplace tech wherever you get your podcasts. i'm david brancaccio. The latest hurdle in the fight over president biden's three and a half trillion dollar infrastructure package involves the administration's effort to lower the cost of prescription drugs. Specifically it's about allowing medicare to negotiate drug prices. Many republicans announce democrats. Do not like this nor do drug companies. Here's marketplace's nancy marshall genzer. The biden administration wants to expand medicare. But that has to be paid for the house. Version of the three and a half trillion. Dollar bill would link. The prices medicare pays for some drugs to what they sell for in certain other countries. A recent study by the rand corporation found that. Us drug prices are about two hundred fifty percent of prices in other developed nations. This proposal could save an estimated five hundred billion dollars over a decade three democrats on a key. House committee voted against the measure. Another committee voted to keep it alive. But it's chances in the senate are unclear and drug companies which are big political. Donors really don't like this. They say allowing medicare to negotiate drug prices would lead to less money for research and development. I'm nancy marshall genzer for marketplace. When i was just a lad on the radio and jimmy carter was president the local savings bank advertised that we give you five and a quarter percent interest normal savings account now these days. Look around. maybe you'll get half of one percent from the bank. The chief ready answers to why interest rates are so low. These days is they've been engineered. Lowered provide cheaper borrowing in this pandemic emergency but really interest rates have also been quite low for years and among the new theories for this the widening gap between rich and poor here to explain his marketplace's senior economics contributor chris farrell and saint paul. Hey there hey david. The gardens of interest rates are keeping interest rates low as a stimulus to spur the economy. Okay talk about that every day but the fact that the baby boom were older is contributing to these low interest rates. You think right because interest rates have been coming down for a longer period of time than the pandemic or even the two thousand eight two thousand nine great recession. So think baby boomers right. They're saving in anticipation of needing money in their later. Years and a lot of that money goes into fixed. Income securities like bonds and money market funds so higher retirement savings rates by boomers in their peers elsewhere in the world that puts downward pressure on rates. And if this idea is essentially right david you know. We're probably not that far from the day when rates could start climbing higher as boomers spend down their savings and retirement to maintain their standard of living right because people when they get older. Take a more conservative approach. They tend to buy bonds. Demand for bonds means interest rates. Don't have to be so high to get buyers for those bonds and interest rates. Then come down. But when central bankers met late this summer not quite. In jackson hole wyoming. It was a virtual meeting. There is an interesting paper that added a new wrinkle to this. That you've been reading right. They put the onus on rising income inequality the richer getting richer and the economists estimate that the top ten percent accounted for thirty percent to forty percent of total private savings in the us over the past quarter century so much of that money went into bonds and other fixed income securities which in turn drove interest rates down and the further irony. That if you're not wealthy and you're just trying to eke by on the little that you have saved these low interest rates hurt you because you're not getting the returns you need to live right but if you are wealthy and you own real estate's equities they have been soaring in value in one of the reasons. Why is this low interest rate environment that we're in so there are a couple of implications of this david. Me one is well. Maybe we're in the low rate environment for a longer period of time than we're thinking but more importantly rising income inequality is a much bigger threat to america standard of living than aging boomers. All right the views of marketplace's senior economics contributor chris farrell. Thank you so much for helping us with this. Thanks a lot david. I'm david brancaccio. This is the marketplace morning report from. Apm american public media..

nancy marshall medicare david brancaccio president biden biden administration rand corporation House committee chris farrell Hollywood jimmy carter david saint paul senate
Global Economy Projected to Show Fastest Growth in 50 Years

UN News

01:20 min | Last month

Global Economy Projected to Show Fastest Growth in 50 Years

"The world is on course to register the fastest growth in fifty years after the pandemic induced downturn. But only the wealthiest countries stand to benefit. Human economists said on wednesday a new report from the un trade and development body unctad maintained at this partial rebound happen because wealthy countries have spent their way out of trouble but this has not been possible for poorer nations whose economies have been hit much harder by cave nineteen down the two thousand and eight to nine financial crisis said unctad secretary general rebecca greenspan. We are seeing now extremely accommodative. Monetary policies in huge fiscal packages utilized by countries with currencies reserve status in the meantime developing regions who spending packages. Where but a fraction are already having to cut back. Some of their spending and increase their interest rate in reaction to the fears of increase inflation. In chris in debt ratios and the prospect of a new adverse cycle in financial markets. The young touchy highlighted that global economic growth was likely to be highly uneven and that next year it is likely to slow significantly with incomes trailing three point seven percent below pre pandemic levels

Unctad Secretary General Rebec UN Chris
UK Posts the Biggest Jump in Annual Inflation on Record

AP News Radio

00:47 sec | Last month

UK Posts the Biggest Jump in Annual Inflation on Record

"Which is consumer prices have risen at the fastest recorded right during August you twit shortage in global supplies and higher wages the British office for national statistics said inflation accelerated to three point two percent from two percent the previous month the jump marks the biggest scam of increase month on month recorded by the consumer prices index the spike takes inflation way above the bank of England's target fifty percent and is likely to ratchet pressure on policy makers to sing consider raising interest rates from record lows the governor of the bank of England's now has to write a letter to U. K. treasury chief Chrissy C. not to explain what's going on as inflation has risen more than one percentage point about the bank of England's targets the governor Andrew Beatty is expected to blame the rise on temporary factors related to the pandemic Karen Thomas London

British Office For National St Bank Of England U. K. Treasury Chief Chrissy C Andrew Beatty Karen Thomas London
"interest rates" Discussed on Knowledge@Wharton

Knowledge@Wharton

05:26 min | Last month

"interest rates" Discussed on Knowledge@Wharton

"Wharton school at the university of pennsylvania busch chairman of the federal reserve. Drome powell is one of the most important people dealing with the issues around monetary policy right now. His recent address from the jackson hole summit gave us some more insight as his thought process. About how the fed should react to the economy during this time of the krona virus christina. Skinner is assistant professor of legal studies in business ethics with the wharton school. She has reviewed his speech again and she joins us to give us. Her thoughts christine. Thanks for a few moments today. Karen my pleasure crispy here were you. What were your takeaways from from. What Chair powell said during the speech i have to say i think the speech was very well done. The markets reacted very favorably. Even as it delivered three quite significant messages so i there was an an acknowledgement by powell that yes. We're seeing inflation above two percent for the first time in a very long time but in the feds view. This is temporary transitory as we say second team message. I think that the fed is going to start pulling back from some of its crisis. Era interventions specifically. It's likely going to slow the pace of asset purchases now in my you. This is the most significant policy decision. If you will that was revealed in this speech the fed is now clearly committing to an intent to start exiting from. Qe now this might seem very attenuated. An intent to commit to something but in fedspeak it's quite significant statement and then third. The sad isn't planning to raise rates right now and it makes sense. It would have been unusual for the fed to have both raised rates and decided to back down from asset purchases. It was probably always going to be one or the other once. We hit recovery mode with the question of sequencing which one was going to come. I one of the things. I as you mentioned he talked about is keeping asset purchases at the current until there is quote substantial further progress towards our maximum employment and price stability goals and quote Impart were we know. Were not there on maximum employment. Today's report just obviously kind of highlights that right now so for not there. What does that mean. Then for the federal reserve. I would imagine this idea of tapering continues to move back a little bit further at this point no i think how actually signaling somewhat of the opposite in his in his speech..

federal reserve wharton school Drome powell Chair powell university of pennsylvania Skinner christina christine jackson Karen powell
"interest rates" Discussed on This Week in Startups

This Week in Startups

02:32 min | Last month

"interest rates" Discussed on This Week in Startups

"I think the regulators are scared to death that this all collapses and when i brought up earlier in the program with matt what would happen if there was a contagion and the bitcoin network went down which is like okay boomer. Bitcoin can't go down so bitcoin hasn't gone down. But everything does down at some point so bitcoin. We'll go down at some point right and bitcoin. We'll get hacked at some point. I mean it's a miracle that it hasn't been and it's only been edge cases where it's been hacked but as the amount of money and bitcoin goes up and the number of participants goes up. It becomes a bigger target. People used to say this. About the mac and ios windows was the bigger target. All the hackers went there and then all the elite people went to ios. Ios is now the target and people have figured out ways to get out Hack and spoof. People's i west of isis as we saw in the recent hacks with that israeli company that was giving people a way to exploit i o estimation. So just because it hasn't happened doesn't mean it won't happen and just because it's unlikely doesn't mean improbable doesn't mean it won't happen something that's very improbable to happen today. You know for it to happen over the next ten thousand days it might go from improbable to happen on this day today. One time but a ten thousand spins the rubio might be very very common right so you have to look at the arc of time and i think that's what got the. Sec spooked here is that they're really scared. That a lot of people watching these returns and getting foam. Oh and the crypto space is pretty toxic in certain Sections of it like the bitcoin toxicity movement. Where they're like. Hey have fun being poor okay. Boomer you don't get it. Well that's kind of how they get you to join you know an mlm program or cult. So that's what's happening. I believe with regulation right now. Let's take a final question. okay richard. We'll ask for your watch accelerator. Is there an mri target for consumer sass or just the dow threshold great question so to translate into plain english. We have the launch accelerator. We give people a hundred thousand dollars for six percent of their companies. We work with them for sixteen weeks. Some two thousand investors and then most typically will co invest in the company down the road when they raise their seed rendre their series a if they're making progress and You know it's not guaranteed but it happens. I would say four out of five times that we wound up investing more money because we have the syndicate dot com which is the world's largest selection of angel investors in single syndicate. Nine thousand of them. I believe renew so For humor company. We're actually if the product.

Bitcoin matt rubio Sec richard
"interest rates" Discussed on This Week in Startups

This Week in Startups

06:34 min | Last month

"interest rates" Discussed on This Week in Startups

"Know there's radium. So there's this whole decentralized finance being built on salona as alternative teeth and then there's the gaming writers out was polish a Gaining systems new builds on salona. There's an tease now. Starting on salona writers the aurora project science to like the In the last six months obviously that the work has been going on for long at the. The momentum and growth is is incredible example of a another project or chain. That's that's being developed on so when you look at a project looking at the developers and the ecosystem around and what actual services are being built on top of it for you as an indication of success. Bitcoin doesn't have much being both. On top of it a theorem has a lot and now salona seems to be really capturing people's imagination. I think because it has less gas fees and other words. It cost less to operate on. Is that correct. Yes alana's way. Faster and cheaper transacted and so when you think about like decentralized exchanges in the growth era right think about you need a water. Boxed operate really quickly a cabin attacks on something. That's that's super slow. And so that's why or seeing like serum and mango and in another's belt on salon alternatives. So yeah i think I think the the blockchain light really depends on light. What's the use case. What are you trying to accomplish bitcoins. Much more of us were value Writes the first kroto ever created. It's you know. It's got a first mover advantage by. It's really a blockchain that's pretty slow relative to to something like salona. So do you think it's really gonna tie back to what bands the blocks operate. And then what are you trying to build on top of it that that's gonna drive kind of decision decision making another stupid question on behalf of the audience and myself if solana at or therion for that matter has all of the value of storage of you know capital like bitcoin does store of value. Plus it has. This programming language development built on top of it. Why would anybody who bitcoin instead of salona and a theorem which you have to swings at bat people can actually use those platforms to build interesting things and you have. The story value your. I think i think there's a lot to be said for one. You know it was the first mover into how much infrastructure there is around bitcoin right funds. That are willing to trade at people that are willing to hold it investment firms. That have been already allocated to. Btc right there's this scarcity elements of it as the first crypto. That's completely decentralized with cap supply. Twenty one million Tokens that psychology of the networks. Always going to be there and it's it's kind of already ingrained as rebellious watching in my mind That doesn't mean that there might not be imperative. You know For calls out there. But i don't think the bid for is going away. The of that mean. Some people have talked about this. Like at some point they might flip and watching solana race up. The charts is pretty interesting. What's the most interesting project on salona in your mind the application. What are people doing with that application. You mentioned a bunch of names. I was with all of them. I think i'm so serums really interesting series for serum yeah r. Srm is the is the ticker seer. Um is the name of the project. But it's really just a decentralized exchange that's going to be really a function or For a variety of different platforms and games in marketplaces in defy protocols. That are Going to be built on salona and then another one Is pissed which shop you probably have. Seen an ad lines where basically like a pricing oracle data oracle that provides data to to shoot a soul ecosystem that polls from a variety of different sources including some of the largest trading firms. And we're all right. So jump is is a big lead. There are jane. Street has agreed to polish. Data on genesis has agreed to their. This is super interesting. Like so when you say oracle just to translate this for folks who are neophytes are and i'll i'll use myself as the fight. This is a way for people to get a source of data and then be able to build a smart contract on it so an example of that might be. We're doing a weather forecast. And i say we're gonna make some bat on the amount of precipitation and who is the source of that precipitation in ohio that we trust. Am i correct. Yeah that's basically right right there they're really It's a good. It's it's real time on chain data. That's that's basically what it is in a variety of different. Publishers can polish data to that that are better in ninety goes system and so it's basically pulling mariah different sources acting as the source of truth the oracle for a lot of different markets than in days versus and people know that is p y t h v network. Is that on a project nonprofit and open source or company into get open source as open source theories a basically a community of different firms that have kind of agreed to polish data to piss. I named a need them. But that knee constantly expanding cap on on on those that might wanna polish tests by seeing some of the larger institutions in the space agree to that and seeing poll on the world for pricing data I think it's encouraging and ingrate. See like the actual adoption from from some of these lights firms that are more known for trading other asset classes outside of outside left out so it could be an example of an interesting data source being published path. I think even like you think about genesis world in the otc market. There's not much data out there on. Otc trades right. There's only like onyx. Shake show if there's some way. Frost publish yeah. Here's all the training data. That's a whole new trading trademark and data source. That's really not public on chain or or live anywhere today that's not published on on So that's that's one example And there's a lot there. But i think that's most relevant to be interesting is imagine if you could publish private company. Share prices to it so i could say. Hey here's what com or grand or stevie or when uber and coin based private our facebook page publishing the latest trades on secondary market. So there are people who are secondary.

kroto solana oracle Bitcoin alana bitcoin genesis jane mariah ohio Frost facebook
"interest rates" Discussed on This Week in Startups

This Week in Startups

02:37 min | Last month

"interest rates" Discussed on This Week in Startups

"The bitcoin your companies. I mean that's like when you when you think about like tail risk of the space and the asymmetric goal you know. What if scenario. That's obviously like something that's really just not likely to happen. Just given how decentral and difficult. It would be to do that at this point. So it's not really a risk that light you can measure and really prepare for. But like i would think about that. It's just a very event black swans systemic that. If it did happen you know there are be first second third consequences that that institutions have to manage Maybe that means chances halting trading bitcoin you know maybe it's looking at each asset blocking independent way of bitcoin were. Were you jeopardized in some sort of capacity when we would we just remained lending the other assets. Would we put a pause on things holistically. I mean there's a ton of things we'd have to think through but it's certainly like a very improbable event at shrimp. I mean if it was point one percent or point one percent one thousand one in ten thousand you basically have a trillion dollar hole in the economy. How many people home. Bitcoin hoax that trillion dollars. I guess would be the question and you'd have firms like yours would be wiped out or joint base would be wiped out a bunch of people who put money into it with lose that money would be gone and i think that's probably what the. Sec is thinking here is. Nobody's in charge of bitcoin and it's their job to think about the black swan events right. Which is why they have. Fdic insurance and why they have regulation. So i think that's probably their motivation here and they seem like they're being maybe too protectionist. But that's probably their motivation. Do you think they have a nefarious motivation here. Or do you think that they're trying to you. Know protect yourself. Augusta's at all. Yeah yeah. I think it's really trying to go back to protecting the retail investor. I think through more education and understanding of the space and the technology they're going to realize that lake shore firms can be regulated institutions can be regulated. There's gonna be laws that protect people from certain platforms But obviously like the focus likely is probably not going to be on on the bitcoin blockchain itself but on some of these institutions platforms. That might be a risk area for for the average investor versus like just owning bitcoin And it being like a chain problem or vertical problem when you are trying to grow a start up fast. Hiring engineers will slow you down like nothing else. Don't i know it. So many companies. I invest in are telling me. They can't get their next version because they don't have a great engineer while lemon dot. Io will find you a perfect candidate in. Just forty eight hours. It's.

Bitcoin Fdic Sec Augusta
"interest rates" Discussed on This Week in Startups

This Week in Startups

05:47 min | Last month

"interest rates" Discussed on This Week in Startups

"The director and the head of institutional lending at genesis according to lincoln page genesis is a global leader at the institutional digital asset markets and a full service digital currency prime brokerage. I heard you on Kevin roses podcast. I guess in the spring talking about these lone. So maybe you could start by just telling us what is the loan structure. You provide your my question. Who's on the other side of the loads and while programs definitely. Yeah thanks for having beyond appreciate jason Be here in terms of how how these loans are structured. So there's two sides to this market as you kind of alluded to there's the retail deposit side which is basically platforms off the ability for reach all users to yield variety of different assets. And then there's the whole institutional side of the market which is basically aware of these assets go in genesis is really focused on the institutional side of the market so we're one of the largest institutional lenders in crypto we lend roughly thirty to forty different assets out to institutional trading firms hedge funds marketmakers kwame trading firms so think Some of the largest trading institutions out in chicago. Right the junk trainings at the world. The streets the suss. Ghana's people just to summarize er who work in finance and they need money to go execute trade. Am i correct exactly right. Yeah so that the capital. Whether it's an a form of crypto like bbc or youth or dollars or stable coin like us dc genesis will act as basically the intermediary that faces these institutional counterparties that needed for training purposes were just arbitrage versus which we get into so a trip for the trading purpose. Somebody had a hedge fund. Says i wanna make a big trade today when a by a bunch of amazon. Because i think they're gonna do great because of this new product coming out. They want to buy one hundred million dollars in amazon they would borrow from people's crypto holdings in you would facilitate that so they can make the trait. Yes except in this case. It would really only pertains buying crypto right. So let's say a hedge fund said. Hey i wanna take a ten million dollar long position in bitcoin. But i wanna do it. Borrowing cash getting leverage on that on that position they borrow. Us dc or new genesis An interest industry on that too then. Basically place a bywater through trading desks to get that exposure. It's another long bitcoin. But they did it on borrowed cash and steve mcqueen and they're paying interesting that long position and what they're getting in return that they didn't have to put the cash themselves to take that position so they're getting that inherent leverage can can work is the other side if they wanted to go short. Btc or ether. They borrow the bbc or east from genesis to themselves or through the database. They generate dollars christie's so you can basically do it on either side which tries if they're borrowing dollars and stable coin or crypto like so to use the example. I was started leading up before. Somebody got really lucky. And may this great bad of buying ten bitcoin for a thousand dollars. Each it went up to fifty thousand dollars another sitting on five hundred thousand dollars. Some trader says i wanna by five hundred thousand dollars worth of bitcoin. I'm going to borrow five hundred thousand dollars. Because i'm long i by That person is going to get paid. What percent on their money. And you're gonna make what percent. Yes so generally people right are paying. Call it seven to ten percent. Annualized on the dollar component of the loan. So if you wanna borrow dollars to get long. It's pretty expensive Really because there's a lot of demand for people to get along in this market and so therefore is just expensive if you're looking to borrow. Bg see or eat to basically go short where you need it. For other trading working capital purposes the razor closer like three percent so a lot a lot cheaper just one because there's more supply in the market and to because people wanna be on the long side not the short side in a bullish market like this. So let's take this trader as an example they borrow the five hundred thousand may buy bitcoin. Bitcoin goes from fifty thousand to twenty five dollars. Which is something that happens. Every gara- to with bitcoin crashes in comes back without she didn't happen three or four times and now they've lost two hundred fifty thousand dollars. What happens does the person who loses loser Collateral comes into play here so if they're borrowing. Let's say a million dollars from jazz to go long. Bitcoin right. We're taking the bitcoin. They purchased as collateral plus excess margin from the borrower. So usually that's another fifty percent so now we hold one hundred percent of the value of the loan so they quinn falls in price there at some point gonna be underwater on their loan which is win. We're going to actually have to ask them to top up more collateral to genesis and if they don't top collateral in time we then basically have rights to sell the bitcoin collateral that we're holding plus the access margin to make ourselves hold on the loan. So that's really what our bread and butter is from a risk management perspective in. That's what we manage on. A debate says is that collateral risk and market risk as the prices move around. So how much do you have loaned out at any given point in time so right now in. Genesis is probably one of the largest lenders in the space. We have a book of roughly eleven point three billion dollars. Lend out shoe the street. And that's to roughly three hundred fifty or so kind of unique institutional borrowers so like i mentioned earlier. These are funds trading firms. It's not as it's not a retail platform so we're specifically facing a lot of the active traders that our institutional nature in space show. If translated year. You have customers who are super trustworthy. That have been around for a while and you know who they are. You know this customer very well and you don't think there's a risk of them defaulting in some major way or not being able to pay back loans in the case. Let's say there was an epa crash lost ninety nine percent of its value. You.

genesis lincoln page genesis Kevin roses bbc amazon Ghana steve mcqueen jason chicago christie bitcoin
Fed Survey Finds Growth 'Downshifted' in Summer Due to COVID

AP News Radio

00:41 sec | Last month

Fed Survey Finds Growth 'Downshifted' in Summer Due to COVID

"The federal reserve's latest survey of business conditions finds US economic activity down shifted in July and August the fed's beige book cites rising concerns about codes delta variant as well as supply chain problems in labor shortages for the slowdown Americans held back on dining out travel and tourism and the report also notes particular weakness in auto sales that's attributed to low inventories due to a shortage of computer chips there had been expectations the fed could soon announce plans to start reducing its monthly bond purchases which are being made to help lower long term interest rates however analysts say that's less likely given the disappointing August jobs report Ben Thomas Washington

FED United States Ben Thomas Washington
What Will the Bitcoin Industry Look Like This Fall?

CoinDesk Podcast Network

01:19 min | Last month

What Will the Bitcoin Industry Look Like This Fall?

"What is the dominant macro-contexts. That's going to shape the fall for the bitcoin industry in particular to understand that. I think we have to i ask what was the story of the summer and i think the summer story in macro was in fact a transition. At the beginning of the summer inflation numbers were heating up consumer demand consumer spending were surging. The delta variant wasn't yet a huge problem and the general belief the operating framework for many in the market was that the fed's hand was going to be forced around tapering dovish monetary policy support for the markets. That would mean an earlier than expected reduction of bond purchases and eventually earlier than expected increase in interest rates. The way the market started to price this in was by selling off on tack in the high risk things that had been some of the biggest beneficiaries of that low interest rate environment that spilled over into bitcoin and crypto as well which are obviously even farther out on the risk spectrum than things like archetypes however over the course of the summer the biggest thing that changed was the rise of the delta variant it is created new questions about the return of economic strength limited lockdowns more mask mandates just general disruptions to the way that people lived and so it started as a recovery summer then turned into a. Maybe we're going to have to deal with this forever sort of

FED
Powell sees taper by the end of the year, but says there's 'much ground to cover' before rate hikes

The Joe Pags Show

00:16 sec | 2 months ago

Powell sees taper by the end of the year, but says there's 'much ground to cover' before rate hikes

"If the economy continues to get stronger, says ABC Jim Ryan, watch for the Federal Reserve to begin tapering off some of its easy money policies before the end of the year. In a much anticipated speech as part of the Fed's annual Jackson Hole symposium, Jerome Powell says interest rate hikes are still often

Jim Ryan FED ABC Jerome Powell Jackson Hole
Fed's Powell: Several Factors Indicate Elevated Inflation Rate Remains Temporary

The Breakdown with NLW

02:03 min | 2 months ago

Fed's Powell: Several Factors Indicate Elevated Inflation Rate Remains Temporary

"Gave his speech at ten. Am today virtually. And what did he actually say. Well it was basically exactly what the new consensus thought. Let's go through some quotes. And then what. They actually mean quote at the epilepsies recent july meeting. I was of the view as were most participants that if the economy evolved broadly as anticipated it be appropriate to start reducing the pace of asset purchases this year the intervening month has brought more progress in the form of a strong employment report for july but also the further spread of the delta variant. We will be carefully assessing incoming data and the evolving risks. So what does this actually mean. We were going to indicate that we were going to start to taper but now we're focused on delta as a reason that we might need to stay the course or at least be more cautious back to powell if a central bank titans policy in response to factors that. Turn out to be temporary. The main policy effects are likely to arrive. After the need has passed the ill-timed policy move unnecessarily slows hiring and other economic activity and pushes inflation lower than desired today with substantial slack remaining in the labor market and the pandemic continuing such a mistake could be particularly harmful. We know that extended periods of unemployment commune lasting harm to workers and to the productive capacity of the economy. What does that actually mean. Well the non cynical read is that the fed is really truly obsessed and focused on the questions of the labor market and employment way more than questions of inflation. A cynical read is. Hey listen we learned our lesson from the taper tantrum. When y'all freaked out before the last time around back to powell the timing and pace of the coming reduction and asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff for which we have articulated at different and substantially more stringent tests even after our asset purchases and are elevated holdings of longer term securities will continue to support accommodative financial conditions. What does it mean. Even tapering won't really be a hawkish turn and tapering in the form of reduced bond purchases has implications for how fast they'll raise

Powell FED
Jerome Powell Signals the Fed May Soon Start Reducing Aid

Arizona's Morning News

00:22 sec | 2 months ago

Jerome Powell Signals the Fed May Soon Start Reducing Aid

"Federal Reserve chairman Jerome Powell indicating this morning that the central bank is likely to begin withdrawing some of its easy The policies before the end of the year, though he still sees interest rate hikes off in the distance. In a much anticipated speech is part of the Fed's annual Jackson Hole symposium, Powell said the economy has reached a point where it no longer needs as much policy

Jerome Powell Federal Reserve Jackson Powell
S&P 500, Nasdaq Extend Push Into Record Territory as Stocks End Higher

Mark Simone

00:32 sec | 2 months ago

S&P 500, Nasdaq Extend Push Into Record Territory as Stocks End Higher

"And durable goods orders that came out today. We're just mixed and so it didn't really move the market all that much, although we did see a move higher in interest rates as the stock market continues to recover both the S and P and NASDAQ pushing further into record territory. And the doubt also advancing modestly in the early going yields on the 10 year note hitting 1.31%. The dollar is firmer. That's putting some downside. Pressure on commodities oil just slipping a couple cents to about 67 50 a barrel while gold is tumbling $21 to 17 80 70 outs as we said durable goods orders kind of a mixed picture there as far

Fed Discussed Pulling Back on Bond Purchases Later This Year

AP News Radio

00:41 sec | 2 months ago

Fed Discussed Pulling Back on Bond Purchases Later This Year

"The federal reserve may soon be dialing back their support for the economy minutes from the late July fed meeting indicate the economic recovery from the pandemic is moving closer to goals on inflation and jobs as a result the fed is expected to start cutting the pace of its treasury and mortgage bond buying when that will happen is not clear it could happen as soon as next month the strategy was to lower longer term interest rates and encourage borrowing and spending the rate is near zero the minutes also noted fed officials were worried about the threat posed by the rising number of virus cases from the delta variant and that it may temporarily delay the full re opening up the economy at Donahue Washington

FED Treasury Washington
What the Afghan Government's Collapse Might Mean for the US

The Hugh Hewitt Show: Highly Concentrated

01:40 min | 2 months ago

What the Afghan Government's Collapse Might Mean for the US

"Brian westbury. What does collapse of american credibility is complete and catastrophic is. What we've seen over the last ninety six hours due to the economy of the united states and indeed the west you this is it the last time at least in our in our in our in the short are short lifetimes that we look like this was the nineteen seventies and i. It's it's kind of weak policy in a and with weak policy also comes weak economic policy And we ended up with inflation We ended up with With slower growth in the economy we ended up with more unemployment. We ended up with lower growth and standards of living and the only thing that turned it around was reagan in the in the early nineteen eighties when we won't when we invested in defense and became strong again we we raised interest rates and stop just printing money and the ending it out and when we did that. Guess what happened. The economy healed And so you know right now. Were you know things move faster. This is entered net time. it's not like the seventies where it all rolls out over. You know years and years and years. We live internet type today and so things are gonna happen really fast. I don't know how bad have things have to get before america Chooses to fix things. But we're in that process right now. Finding out all over again

Brian Westbury America Reagan
The Long History of Credit

Everything Everywhere Daily

02:06 min | 2 months ago

The Long History of Credit

"Idea of credit has a very long history. the code of hammurabi one of the oldest systems of laws in the world has sections on how to deal with credit it put maximum interest rates on loans of grain and silver credit. Was something that was usually done in a very personal basis. The ability to extend credit to someone was dependent upon your relationship with them and your trust in them. In fact the word credit comes from middle french and it was originally used to mean belief or faith. If you extend credit to someone it is literally a belief in the ability of that person to pay you back. This is the way the credit worked for centuries. An individual store would extend credit to individual customers based on their relationship and trust this sort of system might still exist someplace like a pub or a bar where regular might a tab that they pay at the end of the month. The system of individual lines of credit being established for individual customers by individual businesses was very inefficient. The process of making credit more efficient was begun in the late nineteenth and early twentieth centuries with major department stores like macy's wanamaker's their wealthiest customers didn't wanna handle money directly so they were given paper cards or brass tokens that they could present at checkout. The cashier would then make note of the purchases and a customer would then get a statement at the end of the month. This form of credit wasn't intended to be alone. Like many credit cards are today. The amount had to be paid in full at the end of every month. What this system had over previous systems is that the individual cashier didn't need to know the person who presented the token the store would issue the token and any employee could then accept it in one thousand nine hundred eighty five. The charger plate system was unveiled by the charger plate. Group out of new york. It was a rectangular metallic plate. That was about the size of a dog tag and like a dog tag. It had embossed letters showing the name and address of the customer. In most cases the metal plates were kept at the store rather than enhance the customer. They were then pulled out when the customer made a purchase. This certainly made processing paperwork. Easier and again. It wasn't advance but the system still only worked at a single store.

Wanamaker Macy New York
Markets Drop From Records as Consumer Stocks Weigh

CNBC's Fast Money

01:55 min | 2 months ago

Markets Drop From Records as Consumer Stocks Weigh

"Pulling back from all-time highs. Espn dow both snapping five day win. Streaks the nasdaq racing. Its gains for the month of august. Industrials materials. Consumer stock seen the most weakness. Today's pull that comes with the consumer takes center. Stage retail earnings are rolling in walmart home depot both under pressure despite boasting strong results retail sales coming in weaker than expected to so what is the read on. Today's market. drop. Tim kickoff well. The the retail sales weakness so not terrible eight tenths of a percent worse than expected but some of the components in the first of all we continue to show a lot of inflation but building materials furniture sales. You know things that actually had been big bright spots and a signal that the consumer is ready to spend and then spend on durables and be supported by a talent and housing. may maybe. Maybe we've we've seen as good as it gets. Even though i said last night and i believe that the tailwinds for housing low interest rates The asset bubble that is the housing market is still very much in favor of the consumer and their ability to deliver up a little bit and spend a little of that money on their house and we'll talk more about home depot. But but i think that was part of the bleed through you. Had it all happened on a day when home depot not so great some other retail sales in terms of the bottom up stories around the company's not so well but the the thing about today's market that i thought was notable. Was that everywhere. You looked you had weakness. And especially in areas that i think are synonymous or at least should be equated to growth correlated to growth the estimate so the semiconductors index and again. Let's be clear. We're we're back closed at the the fifty day moving average which for for this. Etf which measures semi space and has been very very much. i think a leader for the market overall. There haven't been many times in the last two years where we've been resting on the fifty day and i think we need to watch this but i think other high growth high multiple stocks that had had a pretty good boost. I think are under some pressure. And i don't discount fed minutes as being an insignificant part of this in other words. I think that they are

Walmart Home Depot Tim Kickoff Espn
Bernie Sanders Passes Legacy Defining Budget, Republicans Call It Socialism

The Hugh Hewitt Show: Highly Concentrated

02:39 min | 2 months ago

Bernie Sanders Passes Legacy Defining Budget, Republicans Call It Socialism

"The united states senate turned himself over to bernie sanders and went full on socialists. This week jim talent joins me senior. Fellow at the bipartisan policy center. Follow him on twitter at jim talent former member of the united states. Senate jim did you ever think it the day that the democratic party became socialist. Well i said earlier in the year you that they were going to borrow and spend an enormous amount of money. And that's what they're doing they're They're burning the remaining credit of the united states and not even on the basic. Even the social safety needs of the country so nothing's going to be done here To fix a shortfall and social security to make medicare more secure for an aging population to address student loan debt in the bubble economy for math healthier for the poor. Nothing there a grab bag of programs. Most americans will be able to identify and it's going to drive up. It's driving up inflation. I sent her talent. I think it's a very crafty strategy. It's the reverse oregon strategy expand the entitlement culture to the point that it bankrupts the united states and we have to withdraw from the world. Well i guess. I think that's kinda be the effect of it. I don't know that there's that much long term thinking in this going on you. But i mean look the the the interest on the federal debt last year was about i think about three hundred and eighty billion dollars with treasuries at two percent right. So what happens when the fed jack up interest rates as they will In order to fight inflation so if if if they if it goes to four percents it's gonna cost us another four hundred billion dollars to service. The death entire discretionary budget is about one point seven charges. So that's more than a quarter of the entire discretionary budget and the a senior trump administration officials. Tell me last night the only way out. We'll be devalue the currency. You get to do that once. And you're no longer the reserve currency to debase it. Will it is debasing. The currency and americans. Of course you're going to. They're feeling right now. So you're gonna get maybe it depends on how it actually works out. They're gonna pay for some pre k. Programs for people and you're gonna be paying an are paying now already a lot more. I mean you got to laugh or cry. Randomized says all the time. And i you know that this is i think to show that they can do something big and beat the

United States Jim Talent Senate Bipartisan Policy Center Bernie Sanders Democratic Party JIM Twitter Medicare Oregon FED
Biden Administration Extends Student Loan Payment Pause

John Batchelor

00:17 sec | 2 months ago

Biden Administration Extends Student Loan Payment Pause

"Good news for student loan borrowers. The Biden administration enacting what it says will be the final extension to the federal student loan moratorium, which has allowed millions of Americans to put off debt payments during the pandemic. Payments will stay pause through January 31st of next year and interest rates will remain at

Biden Administration
"interest rates" Discussed on WSJ What's News

WSJ What's News

03:04 min | 4 months ago

"interest rates" Discussed on WSJ What's News

"The fed has said repeatedly this year that it is carefully monitoring incoming data but how did also point to the uncertainty about the time. We're in right now. This is extraordinarily unusual time. And we really don't have a template or or a you know Any experience of situation like this. And so i think we have to be humble about our ability to understand the data. It's not a time to try to reach hard conclusions about the labor market about inflation about the path of policy. We need to see more data. We need to be a little bit patient. Yeah jay powell. I mean i think that a big thorn in his side and i suppose maybe for previous Fed leaders to has been something called the summary of economic projections or Within those projections the dot plot which is sort of showing where officials think rates are going to head and he talked about also in this context of uncertainty. That it's just we should really take it with a grain of salt so he tends to get all these questions about. Well what do you think of the data. What does it tell us. Where is it headed and you know a few years ago. It might have been easier to answer those questions. But i think he's trying to remind everyone that look. We put these projections together. These are our best guesses for our forecast. But there's just so much uncertainty around it because this recession and now this recovery are so unusual so what you will. These forecasts that the fed has put out. But it's very easy that those projections could change very likely really depending on what happens over the next couple of months and probably even over the next year or so for some time wall street journal economics reporter. Kate davidson kate. Thanks so much. For joining me today. Thank emory and finally. You might remember the meme last year of the queen of england performing tiktok dance. That was what's known as a deepfake an image or video that's been manipulated using artificial intelligence. It looked so real. It's hard if not impossible to tell if it's fake deepfakes or a big problem because bad actors can easily use them to influence public opinion now. A team of researchers from facebook and michigan state university have developed a forensics technique to detect deepfakes and better identify who might be the source. Our wall street journal pro. A deputy editor john mccormack says that could help prevent the images from spreading online so social media company or a content provider. You know they have defenses setup but they could set up these filters so they no a particular deepfake is coming from this particular swamps. They can pick it up and stopped the deepfake maybe from coming in or maybe if it comes in can be picked up right away. The deepfakes not going to have a chance to go viral. Hopefully because she can either stop it from coming in or once it comes in you can take it down before there's any viral effect and that's what's news for this wednesday afternoon. We'll be back tomorrow morning if you like our show. Please rate and review us wherever you get your podcasts. I'm marie for totally for the wall street journal..

Kate davidson john mccormack tomorrow morning facebook today emory Fed jay powell this year few years ago last year england this wednesday afternoon marie next couple of months next year fed kate street street journal
"interest rates" Discussed on SML Planning Minute

SML Planning Minute

07:45 min | 8 months ago

"interest rates" Discussed on SML Planning Minute

"Welcome to security mutual life insurance company of new. York's snl planning minute where we share concise and thought-provoking financial ideas for individuals families and business owners security mutual. The company. that cares. Hello this is bill. Rinaldi with another addition of security mutual. Planning minute in today's episode estate planning strategies in a low interest rate environment. Part two in last week's episode. We covered the first two of four techniques used for estate planning in a low interest rate environment. Be sure to listen to part. One were recovered to other strategies. Inter-family family loans and grants or retained. Annuity trusts today. We will cover two more notes sale to an intentionally defective grant or trust and charitable lead. Annuity trust notes sale to an intentionally defective grant or trust. Despite the name of this technique. There is nothing wrong or defective. About the id gt. The strategy aims to take advantage of a disconnect between the income tax system and the estate tax system. While the id gt is a trust and therefore a separate entity from the individual grant or for estate tax purposes for income tax purposes. The trust and individual grander are one and the same. The beneficiaries of the id gt would generally be the grant doors children and other family members and descendants. Typically the id gt. Is i funded. With other assets through gifts or other wealth transfer strategies the id gt then purchases high income and or high growth assets such as commercial real estate or an interest in a business from the granddaughter in return for promissory note the appropriate af are is used as the interest rate on the note we discussed the af are in the previous episode from an income tax perspective the sale of the assets and the installment payments are tax neutral events however from an estate tax perspective the transaction has moved the assets along with the future growth and income from those assets from the grandfather's estate and has frozen the value of the assets sold at the sales price for state tax purposes. The gt is now the owner of the assets including all future income and growth the income tax consequences to the. Id gt for that future. Income is paid by the grant her which further depletes his gross estate for estate tax purposes. Note that the id gt would often purchase life insurance on the grant irs life to maximize the growth and yield to the id gt and hedge against a potential balloon payment due on the note. Charitable lead annuity. Trust first and foremost the klatt is a strategy that is used for individuals who have charitable intent. Taxes are usually not the primary reason to engage in charitable. Planning of course having tax advantages helps like the grant from the previous episode. The klatt is also a split interest. Trust the donor gifts assets into the trust which pays an income stream or annuity to a charity for a certain period of time the quote income interest at the end of the term. What remains in the trust is transferred the quote remainder interest. The remainder interests can be transferred back to the donor or to family members or it could remain in the trust for the benefit of the family members depending upon the design of the klatt. Each design has its own income gift and estate tax consequences but generally the clad is designed to transfer assets to family members through the remainder interest. This reduces the gross estate at potentially minimizes or avoids gift and estate taxes for individuals with an expected estate tax issue class are often created at death to eliminate much all of the estate tax through an estate tax deduction the value of the deduction is actually fairly determined at the time the clad is established. The value depends upon the amount transferred into the clad the amount of the annuity the trust term and the discount rate ineffective as represented by the seventy five twenty rate which we discussed in the previous episode conclusion. There are a variety of wealth transfer strategies that can help you to minimize or avoid federal and state estate taxes. Some work better than others. Depending upon the interest rate environment we have briefly touched upon to common estate planning strategies that work well in a low interest rate environment. These strategies are much more complicated than what is covered in this summary. And that's why you need to work with your own estate. Planning team to determine which strategies may work best for your unique situation. Your security mutual life insurance advisor can help. Assemble your team and coordinate with your estate planning attorney and tax professional to review situation. Contact your security mutual life insurance with advisor today to get process started. The information presented is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal tax or other financial advice related to individual situations because each person's legal tax and financial situation is different. Specific advice needs to be tailored to your own particular situation. Therefore please consult with your own attorney tax professional and or other advisers regarding your specific situation. This podcast is brought to you by security mutual life insurance company of new york the company that cares the content provided is intended for educational and informational purposes. Only information is provided in good faith. However the company makes no representation or warranty of any kind regarding the accuracy reliability or completeness of the information to help. Reach your goals. You need a skilled professional by your side. Contact your local security mutual life insurance advisor today as part of the planning process. He or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives for more information. Visit us at snl. Ny dot com slash podcast. If you enjoy this podcast tell your friends about it and be sure to give us a five star review and check us out linked in youtube and twitter. Thanks for listening and we'll talk to you next. The applicability of any strategy discussed is dependent upon the particular facts and circumstances results may vary and products and services discussed may not be appropriate for all situations. Each person's needs objectives and financial circumstances are different and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified security mutual life insurance advisor regarding their personal needs objectives and financial circumstances insurance products are issued by security mutual life insurance company of new york binghamton new york product availability and features may vary by state..

five star youtube twitter Rinaldi last week new york today two more notes first two snl. Ny dot com life insurance Each person Each design seventy five twenty rate One four techniques binghamton mutual life each person York
"interest rates" Discussed on SML Planning Minute

SML Planning Minute

07:55 min | 8 months ago

"interest rates" Discussed on SML Planning Minute

"Welcome to security mutual life insurance company of new. York's snl planning minute where we share concise and thought-provoking financial ideas for individuals families and business owners security mutual. The company. that cares. Hello this is bill. Rinaldi with another addition of security mutual. Planning minute in today's episode estate planning strategies in a low interest rate environment part one wealthy individuals and families are potentially subject to many types of taxes including federal estate taxes depending upon the state in which they reside they may also be subject to state level estate taxes. That presents a problem when most families wishes are to transfer as much wealth as possible to children and grandchildren undiminished by taxes while the laws impacting estate taxes change frequently depending upon political and economic wins. One thing is clear. High net worth individuals and families can take advantage of the extended low interest rate environment to optimize certain wealth transfer strategies. These strategies are intended to move assets to family members or trust that benefit family members. Which will help to minimize or avoid state taxes. There are two sets of interest rates. That are important for our discussion. The applicable federal rate af are for loans and seventy five twenty rate imposed by the internal revenue code section. Seventy five twenty. The short term af are is for loans between zero to three years the mid term af are is for loans over three to nine years and the long term af are is for loans over nine years. The af are set monthly and is the average interest rate for similar term treasury obligations. The seventy five twenty rate is also said monthly and is about one hundred and twenty percent of the mid term af are to give you an example of where rates were over the last twenty years the annual short-term raid in january of two thousand one was five point nine percent in january. Two thousand eleven. It was zero point. Four three percent and in january. Twenty twenty one. it was zero point one. Four percent similarly. The annual midterm rate was five point six one percent one point nine five percent and zero point five two percent over the same timeframe. The annual long-term rate was five point seven eight percent three point eight percent and one point three five percent over the same timeframe lastly the seventy five twenty rate was six point seven five percent two point three four percent and zero point six two percent over the same timeframe generally the af are is the minimum rate of interest that can be used particularly between related parties to avoid adverse gift and income tax consequences. Irc section seventy five twenty informs us that the seventy five twenty rate is used to calculate quote the value of any annuity any interest for life or term of years or any remainder or reversionary interest and quote that an estate planning strategy may employ. There are four commonly used wealth transfer strategies that work well in a low interest rate environment. We will cover two of them today. And intra family loan and grant or retained annuity. Trust number one intra-family loan and intra family loan is what it sounds like a bona fide loan from one family member to another or to a trust for the benefit of family members. The lender is typically a wealthy parent or someone in a senior generation and the borrowers typically adult child or a trust at benefits younger family members. Depending upon term of the loan the interest rate charged should be at least the appropriate our loans are typically designed to be interest only with a balloon payment at the end of the term to maximize the potential arbitrage. The expectation is that the loan is used for some investment that generates income or grows in excess of the af are thus the lender has removed the income and growth of those assets out of his gross estate for estate tax purposes. If you're a lender depending upon your goals and objectives you may even decide to forgive the loan as part of your estate plan creating a gift and removing assets from your gross state in that manner number to grant or retained annuity. Trust is a wealth transfer technique that is guided by irc sections twenty seven. Oh to the grant is an irrevocable trust known as quote split interest trust you the grant her transfer assets into the trust for a certain period of years in return for an income stream or annuity during that period the so-called income interest at the end of the term. The remaining assets passed to the beneficiaries of the trust or remain in the trust for their benefit the so-called remainder interest. If you survive the term of the grad the assets are no longer included in your grossest state for estate tax purposes life insurance held in an irrevocable life insurance trust. Islet is often used to hedge against the possibility that you do not outlive the term of the grad and the assets. Remain in your state or state tax purposes the assets you transfer into the grad have gift tax consequences because the remainder interest is going to your beneficiaries however retention of the income interest reduces the value of the gift for gift tax purposes. The value of the gift is actuarially determined. At the time the grass is established. The value depends upon the amount transferred. The amount of the annuity the trust period and a discount rate ineffective as represented by the seventy five twenty eight. This concludes part one of this discussion. In part two we will cover two other estate tax planning strategies in a low interest rate environment. note sale to an intentionally defective trust and charitable lead. Annuity trust there are a variety of wealth transfer strategies that can help you to minimize or avoid federal and state estate taxes. Some work better than others. Depending upon the interest rate environment we briefly touched upon to communist state planning strategies that work well in a low interest rate environment. These strategies are much more complicated than what is covered in this summary. And that's why you need to work with your own state. Planning team to determine which strategies may work best for your unique situation. Your security mutual life insurance advisor can help. Assemble your team and coordinate with your estate planning attorney and tax professional to review your situation. Contact your security mutual life insurance with advisor today to get. The process started the information. Presented is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal tax or other financial advice related to individual situations because each person's legal tax and financial situation is different. Specific advice needs to be tailored to your own particular situation. Therefore please consult with your own attorney tax professional and or other.

Two thousand Four percent five point three zero point seven six two thousand nine percent three years one point january two six point two point today zero over nine years Rinaldi seventy
"interest rates" Discussed on The Frug Life

The Frug Life

03:45 min | 1 year ago

"interest rates" Discussed on The Frug Life

"You could have made with dog. Traditional Bank, for example my Traditional Bank is offering me .6% That means that there's a small chance. I'll make less money in this yada savings account. But as time goes on down there may be a regression to the mean and basically if you extend the time Horizon long enough, you probably will achieve average results outliers smooth out a long time. So in short check out this app use my code Richard 45, if you do that I get some little bonus tickets that will help me keep the show running. All right, let's take a quick break and we will be right back there will it seems like the ad real is upon us? Why am I a pirate? Well, I just wanted to tell you about me anchor the platform that lets me share my podcast with these Yar. Anchor be the easiest way to make a podcast and Thursday. So simple even a humble pirate like me can be a podcaster me anchored distributes the podcast and now I make money from ads so I don't have to plunder Thursday Seven Seas download the anchor app or go to Anchor FM to get started. Okay, welcome back now for just 1 second. I wanted to talk about my results on the app in my first three weeks. I've gotten about a dollar and $0.52 on average in prizes each week. So dividing it by the capital. I contributed $10,000 and then timesing it by 52 the number of weeks in the year. We can see I get a rate of almost 8% That's just the rate for prizes. You can add 2% to that as well for the base interest rate. And so I personally have gotten about 1% interest from this versus .6% interest from my other bank, which is pretty good. I hope it goes higher closer to the 2% but that's just how what statistics work. Some people are going to be on the lower end. Some people are going to be on the higher end. I decided to check out some of the reviews on the Play Store for the most part people like it it had A 4.3 star rating in the review store. Both of the negative reviews are people that got unlucky and are complaining or comparing it to the return you get on dividend stocks, which doesn't make sense. This is a bank. It's not a dividend stock that has much less risk than a dividend stock. And therefore it has much less return than dividend stock. And then most of other people are just experiencing technical difficulty issues stuck in login Pages, et cetera. The usual people don't know how to use technology type crap. I always thanks for listening. Today's episode. I'd love your comments on yada savings. What do you think about the app? Have you one big yet? Let me know after that after you sign up and don't forget to use my code Richard 45 you get some bonus tickets and whatnot more chances to win. Oh and some lightning quick follow-ups, just so you know, it is a savings account not to checking's account page. Limited to six withdrawals a month from the account like any savings account anywhere. That's just the limits that by some regulatory body. I don't remember which oh and to the prices are determined by some third-party organization. At least that's my understanding. So there's no risk of yada itself manipulating who wins and whatnot. All right. Thanks again for listening. Have a great.

Richard Traditional Bank Play Store
"interest rates" Discussed on The Frug Life

The Frug Life

04:20 min | 1 year ago

"interest rates" Discussed on The Frug Life

"From San Diego California. It's the Frugal Life podcast with your host Ricky Hershey. Welcome to The Frugal life as you might know interest rates are super low right. Now. One of my favorite high-yield savings accounts at American Express is only offering 56% interest right now, which is insanely low probably lower than inflation. But that is a whole nother story. What if I told you though there's another bank that's offering 52% interest on average that's totally fdic-insured. Well, that's what we're talking about today a service. I am actively using right now to get a better return on my investment and it's called yadah savings. If you follow big YouTubers like Graham Stephan, you may already know that he is involved in the Odyssey savings. He's an investor in it. Now in addition to just need a user of the app. So yada has a game like system. Basically where you pick these like lottery tickets almost that you have a chance of winning. Big prices depending on how many numbers you match the maximum prize right now is ten million dollars..

"interest rates" Discussed on How to Money

How to Money

07:20 min | 1 year ago

"interest rates" Discussed on How to Money

"Knows me. And there's constant dismay eh about the fact that savings account rates continue to decline and Neil has a question about that. Hey guys this is neil calling from Los Angeles. I have some questions actions about high interest savings accounts online about a year ago. I opened Marcus account with Goldman Sachs at two point two five interest and over the last several months that industry has gone down each month To where it is currently at one point seven percent so here my questions number one. Why is this this happening on number two? If or when can I expect rates to increase again and three. Is there a better place. I can be storing my cash right now keeping keeping in mind that I need to keep it pretty liquid accessible because I'll be returning to school in September and I'm going to be partially living off this money. Thank you guys. I appreciate your time man. Great Question Russian. Neil thanks so much for leaving it. It's a question on like I said a lot of people's minds and you mentioned Marcus Man. That's a great savings account. They're offering rates that are competitive with with the best online savings accounts out there. These rates are just in constant flux so from day to day they might be like top five top ten but they're offering really really competitive rates. So marcus solid yeah really good online bank and I remember that when you could get a really good savings account back in my early days of savings I remember having an account that pay me like five and a half percent those pretty pretty sweet. That's definitely not the case right now right. I remember getting close to that with my I N G direct. Yeah orange savings electrical orange. Yeah I think that was the start of capital one. Three sixty they bought and because it was such a good product and they've done a good job of keeping it pretty similar all right. Let's get to the question. Neil I love how organized you were about. So so what you're asking here so the first question why right. Why is this happening and this is happening because the Federal Reserve they've been lowering interest rates? They've done that a few times now. Over over the past year. And that act. Basically stimulates the economy by making it easier for folks to borrow money right when there's cheap money that you can borrow like that eagles more borrowing which means basically a kick in the pants to the economy but does mean is that savers are getting hammered basically because rates are dropping while borrowers are getting cheap longterm money basically those mortgage rates are super low super low savings rates. Yeah Yeah So. It is a and the other thing that you asked Neal. Oh was well. When winter low interest rates going to change winter we're going to be able to see higher rates on savings accounts? And here's what we were definitely in a low interest rate environment currently. But but it's not gonna stay that way forever things going to change interest rates will go up but it's impossible to predict when that change is going to occur who knows what the Fed is going to do and their actions wins have so much to do with savings accounts interest rates that we see in the market. And it's interesting because I think a lot of experts thought that interest rates on savings accounts would be higher right now so would mortgage interest rates like we would just see as the economy did well. We would see rates continue to climb into kind of a more normal sphere because because for instance mortgage rates are still hovering near all time lows. But that hasn't been the case despite a solid economy and despite record low unemployment numbers I mean they've continued. We need to try to stimulate the economy through low interest rates. Although that seems to be subsiding. And it's anybody's guess. As to how long this will take. But I wouldn't bank on seeing you. You know that five and a half percent interest rate demand. I talked about anytime in the next year or two but hopefully in our lifetime. At least right I would love to see standard savings rates. Get back up to five percents. Oh that definitely see that on these things. These economic cycles there cyclical and so we will begin to see higher rates for savers. We'll see higher rates for borrowers. We'll have have different economic circumstances to deal with and you know what there's kind of positives and negatives to each economic cycle we go through it. Ebbs and flows man And then Neil the last part of your question. You're asking basically where else you could go to basically earn more but to still have access to your funds for your money to be liquid. Fact is there is not a better place to go like. Marcus is pretty solid. But you can do is you can consider snagging sign up bonus that can make your effective interest rate higher right like cit discover. They continue. Continue to have these nice little sign up bonuses sweeten the pot in addition to their competitive rates. Cit they currently have what is it right now. A three hundred dollar bonus Joel. Yeah if you've got fifty fifty grand to put in there and Neil. I'm not sure how much money we're talking about. But if you do have that much you can get a three hundred dollar bonus and you've got twenty five dollars for putting your money putting your money there and I think having it there for three months and actually there was a discussion matt recently on the facebook group about kind of the hoops. The you have to jump through in order to get some of these savings account bonuses. I kind of weighed in on on the on the thread and I said I'm only willing to take advantage of a savings account bonus if it doesn't involve all the additional hoops you have to jump through modified spending all that kind of crap exactly orange. They want you to change your direct deposit so I'm not willing to do the hoops but if it's super simple and straightforward and that can make a few hundred bucks for moving my funds over to another bank for a short a period of time and that's kind of what discovery. It you're doing it so we'll post a link to those in our show notes but if you've got a good sum of money and you WANNA earn more than you're currently earning online banks. They're getting so close into what they're offering. The percentage difference in interest rates that they're paying is so small but the way that you can have kind of an outsized effect is to open a new one with the bank. That's offering sweet bonus. Yeah totally you don't change things just to get a tenth of a percent higher interest rate like that's not going to move the needle at all the signing bonuses super solid and Neil also keep in mind too that even though you've dropped maybe from one point eight five down to one point seven. Perhaps that is still one hundred times better than a traditional brick and mortar savings account. And that's that's not even really literally do the math. It's one hundred times better. Probably within that range than the point zero two percent that you're gonNA get at some of the big name banks and so so yeah like it's dropping but it is still substantially better than the traditional offerings. No doubt all right matt. Let's get into our last question. Our first ever foray into talking about employee employee stock purchase plans. Hey guys this is tod. From Atlanta and I recently started a new job. My question is about employee stock. Purchase plans with my new job. I have the option to participate in one of these plans and I was wondering what you guys think of these plans in general and where does something like an esp fall in the hierarchy of investing for you you know after recently listening to your episode on Hsa's clearly 401k matching Hsa contributions should be at the top but where does something like an ESP PD. Come into play. What you guys do for the community and hope to run into y'all at a local brewery sometime take care of only? This was a phone call and we could actually hear what some of your favorite local local craft breweries are. That would be maybe right. I guess that's not podcasting though that's a it's a Colin show. Yeah that's old school medium and by the way we just recently published an article on our site about our favorite breweries and bars in Atlanta. So for folks that are live here or whether they're visiting those are the spots that were likely to hit up most often. I mean what could be better. We're huge fans of Atlanta Katrina craft beer so you combine those two forces is going to be something we talk about sprinkling a little bit of money. And that's our podcast. Let's go and get the todd question he's talking about the ESPN and again that stands for an employee stock purchase plan so for folks who don't know what it what an ESPN is some employers offer an employee.

Neil Marcus Man Federal Reserve Goldman Sachs Los Angeles Atlanta Neal Colin facebook ESPN Hsa matt todd
"interest rates" Discussed on How to Money

How to Money

07:20 min | 1 year ago

"interest rates" Discussed on How to Money

"Knows me. And there's constant dismay eh about the fact that savings account rates continue to decline and Neil has a question about that. Hey guys this is neil calling from Los Angeles. I have some questions actions about high interest savings accounts online about a year ago. I opened Marcus account with Goldman Sachs at two point two five interest and over the last several months that industry has gone down each month To where it is currently at one point seven percent so here my questions number one. Why is this this happening on number two? If or when can I expect rates to increase again and three. Is there a better place. I can be storing my cash right now keeping keeping in mind that I need to keep it pretty liquid accessible because I'll be returning to school in September and I'm going to be partially living off this money. Thank you guys. I appreciate your time man. Great Question Russian. Neil thanks so much for leaving it. It's a question on like I said a lot of people's minds and you mentioned Marcus Man. That's a great savings account. They're offering rates that are competitive with with the best online savings accounts out there. These rates are just in constant flux so from day to day they might be like top five top ten but they're offering really really competitive rates. So marcus solid yeah really good online bank and I remember that when you could get a really good savings account back in my early days of savings I remember having an account that pay me like five and a half percent those pretty pretty sweet. That's definitely not the case right now right. I remember getting close to that with my I N G direct. Yeah orange savings electrical orange. Yeah I think that was the start of capital one. Three sixty they bought and because it was such a good product and they've done a good job of keeping it pretty similar all right. Let's get to the question. Neil I love how organized you were about. So so what you're asking here so the first question why right. Why is this happening and this is happening because the Federal Reserve they've been lowering interest rates? They've done that a few times now. Over over the past year. And that act. Basically stimulates the economy by making it easier for folks to borrow money right when there's cheap money that you can borrow like that eagles more borrowing which means basically a kick in the pants to the economy but does mean is that savers are getting hammered basically because rates are dropping while borrowers are getting cheap longterm money basically those mortgage rates are super low super low savings rates. Yeah Yeah So. It is a and the other thing that you asked Neal. Oh was well. When winter low interest rates going to change winter we're going to be able to see higher rates on savings accounts? And here's what we were definitely in a low interest rate environment currently. But but it's not gonna stay that way forever things going to change interest rates will go up but it's impossible to predict when that change is going to occur who knows what the Fed is going to do and their actions wins have so much to do with savings accounts interest rates that we see in the market. And it's interesting because I think a lot of experts thought that interest rates on savings accounts would be higher right now so would mortgage interest rates like we would just see as the economy did well. We would see rates continue to climb into kind of a more normal sphere because because for instance mortgage rates are still hovering near all time lows. But that hasn't been the case despite a solid economy and despite record low unemployment numbers I mean they've continued. We need to try to stimulate the economy through low interest rates. Although that seems to be subsiding. And it's anybody's guess. As to how long this will take. But I wouldn't bank on seeing you. You know that five and a half percent interest rate demand. I talked about anytime in the next year or two but hopefully in our lifetime. At least right I would love to see standard savings rates. Get back up to five percents. Oh that definitely see that on these things. These economic cycles there cyclical and so we will begin to see higher rates for savers. We'll see higher rates for borrowers. We'll have have different economic circumstances to deal with and you know what there's kind of positives and negatives to each economic cycle we go through it. Ebbs and flows man And then Neil the last part of your question. You're asking basically where else you could go to basically earn more but to still have access to your funds for your money to be liquid. Fact is there is not a better place to go like. Marcus is pretty solid. But you can do is you can consider snagging sign up bonus that can make your effective interest rate higher right like cit discover. They continue. Continue to have these nice little sign up bonuses sweeten the pot in addition to their competitive rates. Cit they currently have what is it right now. A three hundred dollar bonus Joel. Yeah if you've got fifty fifty grand to put in there and Neil. I'm not sure how much money we're talking about. But if you do have that much you can get a three hundred dollar bonus and you've got twenty five dollars for putting your money putting your money there and I think having it there for three months and actually there was a discussion matt recently on the facebook group about kind of the hoops. The you have to jump through in order to get some of these savings account bonuses. I kind of weighed in on on the on the thread and I said I'm only willing to take advantage of a savings account bonus if it doesn't involve all the additional hoops you have to jump through modified spending all that kind of crap exactly orange. They want you to change your direct deposit so I'm not willing to do the hoops but if it's super simple and straightforward and that can make a few hundred bucks for moving my funds over to another bank for a short a period of time and that's kind of what discovery. It you're doing it so we'll post a link to those in our show notes but if you've got a good sum of money and you WANNA earn more than you're currently earning online banks. They're getting so close into what they're offering. The percentage difference in interest rates that they're paying is so small but the way that you can have kind of an outsized effect is to open a new one with the bank. That's offering sweet bonus. Yeah totally you don't change things just to get a tenth of a percent higher interest rate like that's not going to move the needle at all the signing bonuses super solid and Neil also keep in mind too that even though you've dropped maybe from one point eight five down to one point seven. Perhaps that is still one hundred times better than a traditional brick and mortar savings account. And that's that's not even really literally do the math. It's one hundred times better. Probably within that range than the point zero two percent that you're gonNA get at some of the big name banks and so so yeah like it's dropping but it is still substantially better than the traditional offerings. No doubt all right matt. Let's get into our last question. Our first ever foray into talking about employee employee stock purchase plans. Hey guys this is tod. From Atlanta and I recently started a new job. My question is about employee stock. Purchase plans with my new job. I have the option to participate in one of these plans and I was wondering what you guys think of these plans in general and where does something like an esp fall in the hierarchy of investing for you you know after recently listening to your episode on Hsa's clearly 401k matching Hsa contributions should be at the top but where does something like an ESP PD. Come into play. What you guys do for the community and hope to run into y'all at a local brewery sometime take care of only? This was a phone call and we could actually hear what some of your favorite local local craft breweries are. That would be maybe right. I guess that's not podcasting though that's a it's a Colin show. Yeah that's old school medium and by the way we just recently published an article on our site about our favorite breweries and bars in Atlanta. So for folks that are live here or whether they're visiting those are the spots that were likely to hit up most often. I mean what could be better. We're huge fans of Atlanta Katrina craft beer so you combine those two forces is going to be something we talk about sprinkling a little bit of money. And that's our podcast. Let's go and get the todd question he's talking about the ESPN and again that stands for an employee stock purchase plan so for folks who don't know what it what an ESPN is some employers offer an employee.

Neil Marcus Man Federal Reserve Goldman Sachs Los Angeles Atlanta Neal Colin facebook ESPN Hsa matt todd
"interest rates" Discussed on WSJ Your Money Briefing

WSJ Your Money Briefing

03:15 min | 3 years ago

"interest rates" Discussed on WSJ Your Money Briefing

"When he tries to get a sense of whether or not people think inflation's gonna go down. He looks to inflation expectations data from the markets. And so he's pointed out that, you know, we've had a lot of points over the last few years where markets and the fed have had pretty diversion outlooks for the future. And you know, eventually those things have to reconcile. But he's saying that over time over the last, you know, a good number of years. It's the fed view. It's I'm sorry. It's the Marcus view on what monetary policy will do that is actually proven to be more accurate and right now, we have financial market said expect no rate rises and even at various points. Even priced in fed rate cuts, you know, somewhere out in in the later year. And Jim sorry. Mr. Buller would like like his colleague. To pay more attention to what the market is telling them and the FOMC members, of course, have a vote, and we see the vote count. When the when the fed announces interest rate moves, but what is the relationship between the FOMC members, and the fed chairman in this case Jerome Powell in terms of the sway that they have short of a vote. They're sentiment. Does that typically have a lot of sway within the within the fed offices? Well, we always know when we when we take stock of this all fit officials contribute in FOMC deliberation. So whether or not you have a vote, you still get to make your piece and say say what you want to say about what you think monetary monetary policy should do the, but the voting role does sort of shine a spotlight on the people that have it so win every year when the new, you know, it's a it's a complicated dynamic determines who gets vote. But when the new classes rotates in it to shines a spotlight on those people's views, and you know in it does it's. Another thing for the chairman to manage as the chairman is trying to forge a consensus about monetary policy, and at the fed in particular, having a consensus view on changing monetary policy based on like a broad consensus is important. So, you know, there've been times when we've seen lots of dissent specially during the financial crisis. But that's a pretty rare thing to see on the at the fed. So when you see all the voters tilting in a certain way, it does help add a little extra emphasis on the idea that that might actually be the way that the fed goes. And then aside from interest rates Bullard said the fed should maintain its balance sheet reduction plan, he also made the point that I didn't put it in a story. Just because there's only so much you can put in a story that he never wanted the fed to be doing what it's doing right now with the sort of automatic roll off of its balance sheet. He actually always preferred more dynamic than where the fed which change the place of runoff much like it changes short-term interest rates, but he knowledge is he didn't win that debate for now he thinks that just keeping things on. Autopilot on. It's what people expect it's not an issue. So he'd like to from what I've seen almost all of his colleagues right now would like to keep the balance sheet runoff on autopilot. I suppose an effort not to added additional complication to an already pretty complex landscape that is Wall Street Journal reporter, Michael derby, you can read all about his interview with James Bullard in his story on wsJcom or the WSJ app. A Michael thanks for being with us. Thank you for having me every sheet it, and that's your money briefing, im chair Whalen in New York for the Wall Street Journal..

fed James Bullard FOMC chairman Wall Street Journal Michael derby Mr. Buller New York Jim Whalen Jerome Powell reporter
"interest rates" Discussed on WSJ Your Money Briefing

WSJ Your Money Briefing

03:15 min | 3 years ago

"interest rates" Discussed on WSJ Your Money Briefing

"When he tries to get a sense of whether or not people think inflation's going up or down he looks to inflation expectations data from the markets. And so he's pointed out that, you know, we've had a lot of points over the last few years where markets and the fed have had pretty diversion outlooks for the future. And you know, eventually those things have to reconcile. But he's saying that over time over the last, you know, a good number of years. It's the fed view. It's I'm sorry. It's the Marcus view on what monetary policy will do that is actually proven to be more accurate and right now, we have financial market said expect no rate rises and even at various points. Even priced in fed rate cuts, you know, somewhere out in the later year. And Jim sorry. Mr. Buller would like like his colleagues. To pay more attention to what the market is telling them and the FOMC members, of course, have a vote, and we see the vote count. When the when the fed announces interest rate moves, but what is the relationship between the FOMC members, and the fed chairman in this case Jerome Powell in terms of the sway that they have short of a vote their sentiment does that typically have a lot of sway within the within the fed offices. Well, you know, we always know when we when we take stock of this off it officials contribute in FOMC deliberation. So whether or not you have a vote, you still get to make your piece and say say what you want to say about what you think Mon monetary policy should do the, but the voting role does sort of shine a spotlight on the people that have it so win every year when the new, you know, it's it's a complicated. I determines who gets vote. But when the new classes rotates in it to shines a spotlight on those people's views, and you know in it does it's. Another thing for the chairman to to manage as the chairman is trying to forge a consensus about monetary policy, and at the fed in particular, having a consensus view on changing monetary policy based on like, a broad consensus is important. So, you know, there've been times when we've seen lots of dissent specially during the financial crisis. But that's a pretty rare thing to see on the at the fed. So when you see all the voters tilting in a certain way, it does help add a little extra emphasis on the idea that that might actually be the way that the fed goes. And then aside from interest rates Bullard said the fed should maintain its balance sheet reduction plan, he also made the point that I didn't put it in a story. Just because there's only so much you can put in a story that he never wanted the fed to be doing what it's doing right now with the sort of automatic roll off of its balance sheet. He actually always preferred more dynamic thing where the fed which change the place of runoff much like it changes short-term interest rates, but he acknowledges he didn't win that debate for now he thinks that just keeping things on. Autopilot on. It's what people expect it's not an issue. So he'd like to from what I've seen almost all of his colleagues right now would like to keep the balance sheet runoff on autopilot. I suppose an effort not to added additional complication to an already pretty complex landscape that is Wall Street Journal reporter, Michael derby, you can read all about his interview with James Bullard in historian wsJcom or the WSJ app. A Michael thanks for being with us. Thank you for having me every sheet it, and that's your money briefing, im JR Whalen in New York for the Wall Street Journal..

fed James Bullard FOMC chairman Wall Street Journal Michael derby Mr. Buller New York JR Whalen Jim Jerome Powell reporter
"interest rates" Discussed on WSJ Your Money Briefing

WSJ Your Money Briefing

03:13 min | 3 years ago

"interest rates" Discussed on WSJ Your Money Briefing

"As recently as November. The Federal Reserve is expected to raise interest rates as many as four times this year. But in light of stock market volatility in wavering. Economic indicators that's been dialed back to two but his to too many it is in the eyes of at least one voter on the Federal Open Market committee and Wall Street Journal reporter Michael gerbil on the line with us with details. So Michael you spoke with James Bullard. He's the chairman of the Saint Louis fed. He has a voting role on the FOMC, and he feels in terms of interest rates the status quo so far is just fine. Yeah. Mr. Bullard has long actually for several years arguing against interest-rate rises, believing that if there's not that much inflation pressure in the economy, and basically the overall inflation gauge is show that inflation's been at best at the feds two percent target, but mostly below it. There's basically he hasn't really seen any justification for for raising rates. And so what happened is what he fears. Now, if the fed does go for with more interest. Rate rises. He's worried that that might actually be the thing that you know, he doesn't specify how many rate rises it would need to be. But he's worried that continuing to do interest rate increases could actually send the economy into recession. And what's been interesting about where Mr. Bullard is because the United I suggest that he's been opposed to these Ray rice for longtime over the last few days number of fed officials have shifted in his direction and that caution that you you know, that that uncertainty about the outlook Luda to in your opening that's caused a whole bunch of fed officials to also go and say like, hey, maybe it's time to be patient. We have the collective assessment is for to rate rises this year. But now you see fed officials saying we've got a while to take stock of things. See if the Mark of us, right? See if our view is right. So another fed official who had been actually fairly hawkish on Boston fed leader, Eric Rosengren, he for quite some time. He talked about how he wanted more interest rate rises than all of his colleagues even today in his speech today. He backed off and said we have time to be patient and take stock before we do anything else. We'll if you're on Wall Street or an investor the cautious track at least in the eyes of two of the FOMC members the cautious track. They like to see the fed take going forward. Well, that's got to be good news. And there's even another fed official Chicago fed president Charles Evans, who's also getting a voting role in the FOMC to sheer like, Mr. Rosengren, Mr Evans has been pretty hawkish for for quite a while about monetary policy. And he also reiterated the message that we have nothing that is pushing us to do anything right now. So let's just be patient and take stock before we decide whether or not we need to raise rates again. Bottom line for Mr. Rosengren for Mr Evans, they still remained fairly optimistic about the outlook in they still do think at some point. They do seem to lean that the feds can be able to do it. There's a very interesting note in your story from your in view with Bullard. And is he feels the market has been more accurate in predicting the track the economy than the fed Mr. Bullard is consistently placed a lot of emphasis on market based indicators of the. To me, you know, when he's trying to look forward and figure out what the economy's gonna do. There's all sorts of different ways you can do that. You can look at surveys that economists have made all sorts of things like that will what Mr. Buller likes to do is look at what markets are pricing for in the future when he looks..

James Bullard Federal Reserve Eric Rosengren FOMC Saint Louis Charles Evans Wall Street Journal Michael gerbil official reporter Mr. Buller Ray rice Boston Chicago president two percent
"interest rates" Discussed on WSJ Your Money Briefing

WSJ Your Money Briefing

03:13 min | 3 years ago

"interest rates" Discussed on WSJ Your Money Briefing

"As recently as November the Federal Reserve expected to raise interest rates as many as four times this year. But in light of stock market volatility in wavering. Economic indicators that's been dialed back to two, but is to too many it is in the eyes of at least one voter on the Federal Open Market committee and Wall Street Journal reporter Michael Jirgas on the line with us details. So Michael you spoke with James Bullard. He's the chairman of the St Louis fed his voting role on the FOMC, and he feels in terms of interest rates the status quo so far is just fine. Yeah. Mr. Bullard has long actually for several years arguing against interest-rate rises, believing that if there's not that much inflation pressure in the economy, and basically the overall inflation gauge is show that inflation and spin at best at the feds two percent target, but mostly below it. There's basically he hasn't really seen any justification for for raising rates. And so what happened is what he fears. Now, if the fed does go for with more interest. Rate rises. He's worried that that might actually be the thing that you know, he doesn't specify how many rate rises it would need to be. But he's worried that continuing to do interest rate increases could actually send the economy into recession. And what's been interesting about where Mr. Bullard is. Because as I suggested he's been opposed to these Ray rice for longtime over the last few days number of fed officials have shifted in his direction and that caution that you know, that that uncertainty about the outlook looted to in your opening that's caused a whole bunch of fed officials to also go and say like, hey, maybe it's time to be patient. We have the collective assessment is for to rate rises this year. But now you see fed officials same we've got a while to take stock of things. See if the Mark of us, right? See if our view is right. So another fed official who had been actually fairly hawkish Boston fed leader, Eric Rosengren, he for quite some time. He talked about how he wanted more interest rate rises than all of his colleagues even today in his speech today. He backed off and said we have time to be patient and take stock before we do anything else. Well, if you're on Wall Street or an investor the cautious track at least in the eyes of two of the FOMC members the cautious track they like to see the fed take going forward. Well, that's got to be good news. And there's even another fed official Chicago fed president Charles Evans, who's also getting a voting role in the FOMC to sheer like, Mr. Rosengren, Mr Evans has been pretty hawkish for quite a while about monetary policy. And he also reiterated the message that we have nothing that is pushing us to do anything right now. So let's just be patient and take stock before we decide whether or not we need to raise rates again. Bottom line for Mr. Rosengren for Mr Evans, they still remained fairly optimistic about the outlook. And they still do think at some point. They seem to lean that the feds can be able to do it. There's a very interesting note in your story from your in view with Bullard. And that is he feels the market has been more accurate in predicting the track the economy than the fed Mr. Bullard is consistently placed a lot of emphasis on market based indicators of the. To me, you know, when he's trying to look forward and figure out what the economy's gonna do. There's all sorts of different ways you can do that. You can look at surveys that conham have made all sorts of things like that will what Mr. Buller likes to do is look at what markets are pricing for in the future when he looks..

James Bullard Eric Rosengren Federal Reserve Michael Jirgas FOMC Charles Evans Wall Street Journal official reporter Ray rice Mr. Buller St Louis Boston Chicago president two percent