Fed Cuts Rates: Will RV Rates Follow?

steelhunter wrote:

ajriding wrote:
The fed loans money to the banks who loan it to your local banks who loan it to you at interest. At low interest there is no profit to make loans to individuals who may or may not pay it back. Too low rate and the banks look for other investments to get a return on. Their job is not to make loans, it is to make money. This is why the stock market (prior the virus) was going so high - banks saw more return on stocks (even with the risk) than in making loans. The stock market is a dumb metric to measure the economy, but it is how "they" have always measured it, even for the last administration, so "he" is keeping and playing by the same rules of measure, and winning, lol.

The stock market does not lose money, the money stays in the market, but it changes hands. Investors may lose money, but someone else makes money, the sum total is always the same. If you give me money for my stock and then my stock value goes to zero then I still have your money, but since the stock you bought from me is now valued at zero, then I owe you zero. I made, you lost.
If that stock you bought from me doubles, then you can make double when you sell it, but I do not owe you double, I just owe you the original stock certificate, someone else may buy your stock, but not me, I have your money. You can get another person's money by selling at a profit or at a loss.

We do not need a privately owned international central bank to tell us what the interest rates should be. Pure stupidity on America's part. If you know what to listen for you hear Trump talk about removing the fed for good and returning the power back to our country. You will hear him constantly harp on the fed all the time, saying they are doing it wrong, and hurting the country. He does this so when the time comes the citizens have heard a lot about how bad the fed is and when T goes to remove them the citizens are mentally prepared. The prez always tells us what his plan is, but in a more coded way, he gives hints all the time, and sends messages to our enemies in plain sight. Sometimes he says kooky things but to the intended target audience is very pointed and direct and not the least bit kooky .Dont agree or disagree with this, just put it on the shelf and when you hear something run it through this filter and see what drops out.

Huh?
If a stock suddenly becomes worthless who makes money?

That, and the fed lowered the federal funds rate. So this impacts banks lending to each other not borrowing from the fed.

And not sure where the theory the stock market or investing in general is a zero sum game came from. But this is RV.net not IBD.