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/biz/ - Business & Finance


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49683000 No.49683000 [Reply] [Original]

Why is anything happening the way it does? What does BPS even mean? Why does 75BPS = prices going up? I just don't get it...

>> No.49683084

>>49683000
Capitalism is an irrational mode of production, of course it makes no sense.

>> No.49683096

>>49683000

People were afraid the rate hike would be even higher than 75 bps which was the expected amount so the risk of a bigger hike just disappeared

>> No.49683181

You're on /biz/, OP. No one does.

>> No.49683233
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49683233

>>49683000
It's ok anon, us stupid folk will make it. Post cute pepes.

>> No.49683267
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49683267

>Capitalism is an irrational mode of production, of course it makes no sense.

>> No.49683345
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49683345

>>49683084

>Capitalism...

>> No.49683466

>>49683000
It means the federal reserve is raising their oil output to 75 barrels per second
Gasoline prices should come down now

>> No.49683505

>>49683466
Oh. All these numbers and acronyms and chain reactions get a little confusing sometimes...

>> No.49683604

>>49683000
>Supply and demand lead to prices
>Demand is currently high, supply is low, meaning prices are high
>Demand for money is also a thing
>When demand for money is high, the price of money (interest rate) should be high too if the supply is fixed
>Enter the Fed
>Fed sets price of money between banks through actions in the open market (i.e. buying/selling US debt)
>More (or less) money comes into supply this way
>If the Fed wants to improve demand for money (and therefore demands for goods and services), they can increase the supply to levels higher than demand to lower the interest rates and move us along the demand curve for money
>Higher demand for money = higher demand for goods and services = higher prices because supply is fixed in the short-term
>Likewise, if the fed wants to reduce demand for money/goods, it takes away money from the system, raising the cost of borrowing, and decreasing demand. Lower demand means lower prices.

>> No.49683792

>>49683000
75bps means 75 basis points. Rates are generally expressed in 100ths of a percent, known as basis points. 75 basis points higher means lower prices.

>> No.49683997

>>49683000
anon, you never heard insider jew-nose trading?
well, yesterday and the past days was that + sell chain reaction for a...

75bp hike just today.

>> No.49684235

>>49683604
>>49683792
So if I got this right, the increased rate essentially means increased price of money / currencies, so currencies and stocks and the like should go up, while actual goods should go down?

>> No.49684658

>>49683000
Everything financial happens the way it does because Jews control finance.
When you find yourself hopelessly poor and with nothing left to lose, remember that.

>> No.49685665

>>49683084
>Capitalism
>Jewish phase of majority representation for you
>Prints, gives away, bails out, sorry goyim, see capitalism/free markets don't work, choose choose communism to eat the bugs n be happy