Fed rate rise inbound March 15

Will this kill the economy?
How will this affect Australians? Does this mean that our housing bubble will finally pop?
Any economy anons explain what this means to my small Australian mind?

telegraph.co.uk/business/2017/03/03/feds-yellen-march-rate-hike-appropriate-data-holds/

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multpl.com/shiller-pe/
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Calm down. This has been expected and put off.

I really can't understand how can they raise rates with such debt.

That's what has me stumped
>record high debt
>record high consumer debt
>sub-prime autoloan bubble

If they raise rates, then how will already on the edge debt slaves service their debts?

>(((Fed))) raises rates
>Economy drops
>Trump president
>Trump redpills the world on the (((Fed)))

Calm your big ol titties OP

>economy drops
>trump is instantly blamed and forever will be
>republicans never win an ellection ever again
>democrats turn the us into a one party state
>crisis spreads to europe
>brexit cancelled
>merkel wins again
>muslim riots all over europe because governments dont have money for welfare
>europe accepts islam as the official religion to stop the muslim riots
>civil war based on religion caused by bad economics
>muslims are defeated
>monarchies in europe are restored
>our current times will be remembered as the second "dark ages"

Keep dreaming...

>How will this affect Australians?
Don't you guys produce a lot of gold? You will be fine.

>If they raise rates, then how will already on the edge debt slaves service their debts?
They don't, the time has come for the banks to collect. They create their money out of thin air with the fractional reserve banking system but when you can't service the debt they will take the real assets from you.

Imagine making your own anonbucks (not even paper, just type in 100 billion anonbucks in a text and send it to a friend) and then ask it back with interest a year later. He can't pay so then you take his car and house.

I want to believe

It seems like the slimy thing (((they))) would do.

The interest rate hike is already priced in by the markets. The markets are already expecting a raise so no, nothing will happen.

And no the Fed is not some evil Zionist entity ffs. They are there to ensure there is a smooth economic engine. They are very necessary for a modern economy.

Learn to basic finance.

That implies that markets are in a bubble and are completely rising due to cheap money (low interest rates). This is not the case.. Markets are rising because of real economic growth AND because they are very hopeful for Trump's tax and infrastructure policies.

Trump is basically the next Reagan. The Dow Jones could even reach 30,000 by the end of this year or early next year depending on how things turn out. His tax policies alone will create a new economic boom that America has not seen in a long time.

>They are there to ensure there is a smooth economic engine. They are very necessary for a modern economy.

Almost as dumb as a britbong.

P/E ratios are at all time highs. That means it is a bubble. If earnings were driving high prices, it is economic. If prices are outstripping earnings, it is easy money.

They are getting ready to jizz all over Trump's face when he bends the knee to bailouts.

>no the Fed is not some evil Zionist entity ffs

Merchant, pls.

What does this mean for me as a person with no debt and some savings? Will I be able to buy cheap stuff from debtcucks who brought over priced assets and are now forced to sell for pennies due to the fact they lost their job thus can't pay debts ?

Good thing Trump will have it audited.

Learn to basic economy. You need a Central Bank in modern capitalist economies.

>lern 2 meme
Just explain it to me if you're such an expert, cunt.

Audit this cunt. Trump needs to destroy the Federal Reserve.

Central banks are fine. Issuing all the currency as debt is not. The federal reserve is not ok as currently operating.

I doubt they will raise it, even if they do it will be something symbolic like a quarter percent or something.

>That implies that markets are in a bubble and are completely rising due to cheap money (low interest rates). This is not the case.. Markets are rising because of real economic growth AND because they are very hopeful for Trump's tax and infrastructure policies.

>We've reached a new paradigm
>Housing values know only one way: up!

Sounds familiar yet?

>P/E ratio are at all time highs
Wrong.

Stop reading Zero Hedge. The economy is doing fine and will only get better once infrastructure spending is initiated and corporate taxes are lowered. Trump like I said will rally the markets to highs they have never seen. If you have no skin in the game right now, you are losing big time. This is just the beginning.

The current rally is nothing like the housing bubble of 2008.

>2007
>The current rally is nothing like the new economy bubble of 2001.

Its going to devalue the AUD even further. Australia is fucking finished

Explain how it is similar then. You can't just make unsubstantiated claims like that.

Depends on the rate hike. If it is just another 0.25% the average Joe won't really notice. The rate right now means banks can borrow money from the fed and loan it out for under 1% and still make a profit. Obviously they would never set rates that low due to other factors but they could if they chose to. Worst case scenario, credit becomes slightly harder to get and any other factors that could negatively impact the economy exasperate that. The hike on its own won't do much but Sup Forumstards are going to screech about it anyways because of (((Yellen)))

it will probably be fine, nothing is really going to change if the fed raises rates

The bubble in 2001 was caused by low interest rates, high inflation, and a huge, HUGE unsecured subprime market worth trillions. Most of that has been eliminated.

You have to notice the pattern yourself. Nothing, especially not an economic upswing, lasts forever. Mean time between failure is around 7 years.
We're due.

I'm happy to sail the tech bubble while it lasts, alas, it won't

>Will this kill the economy?
No.
>How will this affect Australians?
Maybe your aussie gets weaker.
>Does this mean that our housing bubble will finally pop?
That would be a coincidence. Your central bank would need to raise rates as well.

Because they're supposed to raise rates if too much debt is issued...lower rates would keep the issuance high and cause a debt bubble that would collapse onto itself and cause a depression.

It's not quite so easy for the banks. If an asset is seized and doesn't sell for enough to cover the debt, the bank must cough up the remaining money. When houses dropped 80% in value during 07-10, they had to cover the remaining loan value if they sold. So instead they left the houses on their balance sheets and tried to rent them out until values recovered.

>They are there to ensure there is a smooth economic engine. They are very necessary for a modern economy.
Nope. The bank has a theoretical purpose but it fails miserably most of the time. The fed succeeded in 81 at stopping inflation and in 66 at stopping a bubble but that was before (((they))) were in charge.

>Markets are rising because of real economic growth AND because they are very hopeful for Trump's tax and infrastructure policies.
Stock markets are rising because there's a large supply of cash chasing assets that have a low yield. With interest rates at historic lows, bonds are undesirable and stocks become the next best thing. We've not seen earnings growth, we've seen multiples expand.

>Trump is basically the next Reagan.
Maybe, maybe not.
>His tax policies alone will create a new economic boom that America has not seen in a long time.
The tax policies will drive profits higher in the short term along with prices but that trick has a limit. Markets are already much higher on the expectation of a lower corporate tax rate, with success or failure the markets can't sustain the boom.

(continued)

Different assets and markets go into undervalued and depressed territory at different times. We're just emerging from the oil and coal depression that yielded high returns for people that invested at the bottom. When it comes to real estate, it's unlikely we'll see such a huge collapse like 08 again. Those kinds of nationwide collapses occur once in a lifetime(~80 years, last one was 1920s).

They might not be at all time highs but they're clearly above their normal levels as your pic shows. The PE 10 ratio is extremely high relative to it's historic average.

multpl.com/shiller-pe/

I cant wait to hear the thunder from dow unda
>> all those "BLOODYY YYYAAAANKS"
or
>>muh boomerrang
It'll be a good day here in the northern hemisphere where I've got my ice and snow and only several deadly mamals and a single necrotic spider.