One of his Wharton professors called Trump the dumbest student he ever had. Trump Shared a Fake Quote From His Professor Who Actually Thought Trump Was "The Dumbest" - MeidasTouch News (meidasnews.com)
Hopefully, you’re being facetious, because it’s hard to imagine a statement less compatible with the core principles of American governance.
WarDamnGator summed it up perfectly in post #3. He would keep rates near zero most of the time to keep GDP artificially high. Of course if inflation shot up to, say, 15% he might raise rates to 15%+ to immediately curb inflation to get re-elected which would bankrupt plenty of small businesses. It would be really hard for any President to manage that conflict of interest in an election year. Personally a real estate developers assets are probably structured similarly to mine in private equity. Almost all of my investments are in private companies (just replace companies with real estate for Trump). All of those companies were acquired with ~50% debt all at floating rates. On top of the companies being levered I have a loan with what was Silicon Valley Bank where 50% of my personal investment in each company is in the form of debt (that I have to pay very real interest on each quarter) on top of the debt the company has. I can only guess, but Trump’s use of leverage is most likely more aggressive. It would literally be impossible for me to put interest rates at anywhere but zero because a zero rate environment helps existing investments so much. Not to mention if Trump or his idiot sons want to buy a new piece of real estate or company they are going to use new debt. It just doesn’t work.
So basically, Trump is admitting that Biden had nothing to do with the higher interest rates. Great strategy... lets see how it works for him.
Bar is pretty high to break into top 3. 1. Nuking Hurricane 2. Injecting Disinfectant 3. Buying Greenland
True, but if Trump got control of the interest rates you're talking an instant crash of our economy based on that news alone.
In all seriousness, the Fed has been proven to be very inefficient. They all sit back and react and by the time they do something, the damage has already been done. It could easily be argued the Fed induced the Great Recession of 2008-2009 by raising interest rates 17 times prior to the subprime crash.
An actual position. What specific things since the subprime crash has the Fed handled more poorly than any other country’s central bank? Why on earth would the President be able to make better economic decisions than the economists at the Federal Reserve? How would you structure (even the most ethical President’s) built in conflict of interest? Please, please explain how raising rates and making homes and mortgages more expensive lead to the subprime crash. By definition the loans were subprime, which means they were risky. The problem was TOO much money was going to subprime borrowers. Higher rates offset that problem.
LMFAO! And you think Kamala is smart and worthy of being president? You and everyone here are taking this exercise in who is more qualified to the lowest common denominator.. Tell us what makes Kamala is dammed qualified to be POTUS? Trump is a proven leader... while Kamala is the lowest common denominator OUT of ALL THE DEMS that ran to become the 2020 Democrat to run for president. Your gal was dead last in the Democrat primary. So... your words about Trump are as empty as Kamala's head.
You don't have to get all huffy to have a rational conversation about this. The root of subprime were the ARMs that had predatory prepayment penalties. When the Fed began raising interest rates, mortgage payments went up very quickly for those homeowners, which led to widespread default. If rates had stayed relatively the same through that time period, it's unlikely the crash would have been so precipitous. That is not to say the Fed shouldn't have raised interest rates, but when you raise interest rates 17 times in a row, that indicates the rates were probably too low to begin with and never should have been that low. So the Fed essentially fueled the subprime boom with rates that were too law and then brought the house of cards down with 17 straight rate increases.
Without looking (having missed that part of Trump's news conference), I can almost assuredly say Trump wasn't proposing that he have dictatorial powers over the Fed. He was proposing more influence, yes. And if we look at the record, Trump was screaming for the Fed to lower interest rates for weeks when Covid arrived here and Powell finally did a half-point emergency cut, which proved to be useless as we would all later find out. So at least in that instance, Trump was obviously way out in front of the Fed on how to handle that crisis. That doesn't mean I'm ready to hand him dictatorial power over the Fed, but this forum has a way of misstating positions and taking things out of context.
I’m not trying to be rude or huffy, but I literally don’t know where to begin with the arguments made in the last two posts. I don’t think Trump was “way out ahead” of the Fed because he screamed for rate cutes on twitter a few weeks before the feds issued a 50bps emergency cut. During an international pandemic, during an election year… So if you are advocating for the Fed to not be independent from the Executive Branch, how much influence should the President have over the fed? We agree it shouldn’t be absolute. Trying to piece together the 1,000 variables from the causes of the Great Recession to the Pandemic, it seems like your underlying concern is the Fed doesn’t move swiftly enough. Is that fair (really not trying to be argumentative). They kept rates too low for too long which fueled the financial crisis, then had to over correct, then didn’t cut rates fast enough when the pandemic came about?