Quote from Landis82:
It's pretty funny how you BLAME Bernanke for everything given that the current Administration for the past 7 years has had no problem allowing the US Dollar to go into free fall . . . When Bush appointee Treasury Secretary Paulson said over the weekend in an interview that the Administration has always been an advocate of a STRONG DOLLAR policy, I wanted to spit in his face. What a joke this Administration is. Literally every single Bush appointee has been shown to be incompetent, from Rumsfeld to Michael Chertoff to Gail Norton, to Christine Todd-Whitman to Roberto Gonzales, etc.
Furthermore, you make no mention of his predecessor, Alan Greenspan and his "easy" monetary policy.
The banks are not necessarily being "bailed-out". There is a big difference between adding liquidity into the banking system and facilitating credit creation and simply buying back bad loan portfolios. A big difference, but you fail to mention that which tells me that you do not have a complete understanding of what is currently going on.
By the way, what would you like to see Bernanke do . . . Raise rates to try and curb the rise of a Global Commodity like crude oil and send the country into a complete DEPRESSION???
Without credit creation the Economy does not grow, it contracts . . . sending the unemployment rate dramatically higher.
This is not a typical Economic cycle.
And those of you that are advocating that Bernanke shouldn't be helping to ease the current DEFLATION and "de-leveraging" of the banking system fail to grasp the magnitude of this.
Some very good points you bring up here.
First off. Your right I said Bernake. I should have reworded that for Bernake and Bush are merely puppets just doing what they are told. I lump Beranke and the fed, Bush and the administration and all of there clans together. They are all in bed together. Also I need to throw Greenspan in there as well cuz this problem didnt happen overnight.
The rich get richer and the poor get more poor and the middle class becomes poor.
In a way you can definitly blame a lot of average Americans for voting in Bush. Not once, but twice!!!
You Said!!
When Bush appointee Treasury Secretary Paulson said over the weekend in an interview that the Administration has always been an advocate of a STRONG DOLLAR policy, I wanted to spit in his face.
That above statement is just so sick. How could he keep a straight face. Thats just down right disgusting. Nothing further from the truth. IDIOTS.
You are very right when you say I do not have a full understanding. I think I understand some things but not everything. In regards to the banks being bailed out. This is what I think is happening, but I am not sure exactly so feel free to shed more light on this if I get it wrong. Hopefully I am not far from the truth.
These banks will be able to borrow money at no interest or very little interest. Supposedly they are going to have to pay the money back. Well my guess is they will not be able to pay the money back or at least far from the full amount. And then the fed will just right off those loans so the Banks don't have to pay them back , or make the bank pay a small % of it back.
What should the Fed do???? Good question.
Interest rates should be higher, however I understand that you cannot go jack up the rate overnight. First thing they have to do is stop lowering rates so much. At the next meeting if they actually think that not lowering at all will make the markets go into a freefall then that is not the answer. They need to lower by .5% max. They should have never cut so much so close together a month or two ago. After this cut they cannot cut anymore. Its very difficult cuz if they say we dont need to cut, everything is ok, then they are blatently lying to everyone. They need to tell people its going to get a little bit worse before it gets better. ( Even though its going to get a lot worse ) They need to word it that way so they dont create panic.
And stop PRINTING SO MUCH MONEY. Unless its an emergency.
There needs to be pain in the stock market and the real estate market before things will get better. Much more pain. Also get out of Iraq and stop spending zillions there.
You are so right. This has been going on for years and there is no quick fix. Pain is inevitable.
However it should not be transferred from those responsible to the Middle Class!!!
