Bernanke has a golden opportunity to relieve the pressure off the consumer tomorrow

What about HedgeFundTrader - the defender of all that is good and right?

I think him and Bernanke belong in the same crib. Bailing out banks at the expense of taxpayers is and will always be a big blunder.

Sure he controlled the inevitable - for a while, and I'll commend Ben on what is turning out to be an excellent effort.

But come on - shoulda just let the banks tank, consolidate and get past the mess sooner than later.

paysense

That was a sickening year where every well-placed short bet was ravaged time and again with surprises!

Will there be more tomorrow?
 
Quote from ByLoSellHi:

Bernanke could slam the door on inflation with a firm 50 basis point hike tomorrow, but he doesn't have the balls or brains.

What's better? Increasing inflation over and above what we're already experiencing, while the banks refuse to lend money except for all but the most exceptional cases...

...or decreasing inflation (deflation on core), while the banks refuse to lend money except for all but the most exceptional cases?

At least with the latter, consumers get breathing room to spend more money on things other than gasoline, heating oil, electricity and bread.

Not only that, but he might be able to break the neck of this core inflation with one simple hike, because it would catch the factors responsible for the inflation off guard.

If successful, he could then relax monetary policy in maybe September, because he will have created a cushion.

But he won't.
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You just want the market to tank, why do you make a stupid post and not come out and say it?

OF COURSE if FED were stupid like you are, they may have done it. But it would be at least a year before they raise any rates.
 
Quote from tschmidt1234:



My question is, will the dollar tank if they don't hike the rates tomorrow? Trichet has basically outright said the ECB is going to raise their rate at the next meeting, so that would make the spread between the euro and the dollar even bigger... :eek:
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how much can the dollar tank realistically tho it`s at 1.55ish rite now it`s lows were at like 1.57 thats alot of pips...
 
Quote from RiceRocket:



Thus, the fed has to print more money out of thin air as a consequence. But the cause isn't the fed printing, it's the government spending.
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Yeah..but the government and the consumer are both busy spending printed money...

The Fed spiked the punchbowl - how can they expect us not to drink it...
 
I agree. A 50bp tightening is what we need. That would kick oil in the nuts a little, and give my Clients with long positions the movement we need! Badly!:)

Good example: I was up 23% in QLD, and now am back down to around +6.3% Something's gotta give soon...
 
0.5% won't do a thing to inflation. You'd need rates at 6% or higher for a few years. Hell will freeze over before the totally unindependent, politically captured, Congress-beholden Fed ever raises rates significantly in the midst of a meltdown in the financial and real estate sectors. That would piss off the consumer, Wall Street, and Main Street all into one.

The cluelessness, and atrocious insitutional design of the Fed (nice job Congress!), is shown up loud and clear by comparing it to the world's other major central banks. The UK, Europe, Australia, Canada, New Zealand all have much higher rates, and are focused on inflation with an eagle eye. Only the Fed keeps pouring fuel on the fire. They are doing a 1970s rerun. Burnanke is going to send the US economy up in flames.
 
Excellent Commentary All

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Looks more like Japan....with an inflation twist....

Stagflation is now present throughout the world.....and will only be partially resolved by a sharp decline in oil prices.... downward repricing of real estate and big ticket items....and re-establishing normal savings and credit....

Normalcy in money is when an average savings can create interest which can be used for living an average everyday life....this has not happened for number of years both in the US and Japan....

A normal savings rate should be greater than 7%....

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What can happen is a rapid influx of new jobs......hopefully the green revolution can gain traction....
 
Quote from Pa(b)st Prime:

"... Within two years the Long Bond will yield 10%.
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I'll bet it will be MUCH higher than that when the rest of the world pukes up their treasuries out of disgust for the crashing $USD.... maybe not within 2 years though.
 
Quote from ByLoSellHi:

Bernanke could slam the door on inflation with a firm 50 basis point hike tomorrow, but he doesn't have the balls or brains.

What's better? Increasing inflation over and above what we're already experiencing, while the banks refuse to lend money except for all but the most exceptional cases...

...or decreasing inflation (deflation on core), while the banks refuse to lend money except for all but the most exceptional cases?

At least with the latter, consumers get breathing room to spend more money on things other than gasoline, heating oil, electricity and bread.

Not only that, but he might be able to break the neck of this core inflation with one simple hike, because it would catch the factors responsible for the inflation off guard.

If successful, he could then relax monetary policy in maybe September, because he will have created a cushion.

But he won't.
More...



Bernanke jumped to quick lowering rates as he did, he should have waited to let everything really take its course before lowering rates the quickest that any fed member has in history. Good job.
 
Excellent Commentary, Gnome

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I'll bet it will be MUCH higher than that when the rest of the world pukes up their treasuries out of disgust for the crashing $USD.... maybe not within 2 years though.

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What is interesting is that it is not until previous extremes are met....that reversals take place....often this is the case....

The Carter Admin saw 90 day tbills above 16%.....
 
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