Friday, December 21, 2018

Fed Kills Stock Market


The Federal Reserve has increased the interest rate they charge to banks 7 times since 1/1/17. Trump was elected. Obama had crashed the economy, but was gone. The Federal Reserve joined in to do what they could to crash Trump’s economic recovery.

The seventh time was a charm.

2017 & 2018 Fed Funds Interest Rates

3/16/17     1.0%
6/15/17   1.25%
12/14/17   1.5%

3/22/18   1.75%
6/14/18     2.0%
9/27/18   2.25%
12/19/18   2.5%

2019         2.8% planned


On 12/19/18, the Fed killed the Bull Market we have seen since the 2008 Mortgage Meltdown when the Dow collapsed to 6,726.02.

Interest rates will increase by 0.25%, so all loans tied to the Prime Rate will go up.  Mortgage rates are 4.5% on 30 year loans.

On 11/11/16, the Dow stood at 18,847.66.  On 9/20/18 the Dow hit its peak at 26,656.98. By 12/12/18 the Dow had dropped to 24,682 on rumors of a Fed Rate hike.

On 12/19/18 it had dropped 3,333.32 points from its peak to 23,323.66 after the Fed announced an additional increase in the fed funds rate. On 12/20/18 the Dow continued to drop to 22,853.02.


Norb Leahy, Dunwoody GA Tea Party Leader

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