Bernanke is a complete goof

Quote from jficquette:

Screw the banks. He should raise rates and get this disaster over with asap.

John
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The banks today are like LTCM in its day. If you scew them you bring the whole thing down. The banks are taking their hits but won't be allowed to go under if the FED can prevent it.

He can't raise the rates right now because this would aggravate the disaster to catastrophe status. He's telling us he wants to treat the current situation as an emergency that must be tended to immediately. Later, when the economy's stabilized, he'll work with Gov't to deal with the inflation that will inevitably be exacerbated by any rescue package.

I think you'll see a much tighter coordination of efforts between FED and Gov't than has existed in the past until stability is restored.
 
Quote from day7793:

Where do you think I should post? On your ass?
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You're a very amatute troll. You know that right? Take a few lessons from detective aka stock tr3der.
 
Quote from AAAintheBeltway:


I said before the last meeting they should cut 50 bps, and I was attacked by many of you.
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I think he should raise rates 100 bps to wring out the excesses in one swoop and tell market participants there ain't no Fed put anymore. And all those speculating homeowners can go suck it (along with the banks who lent them the money).
 
Quote from AAAintheBeltway:

There are costs to that policy but they pale in comparision to what we will piss away if somethng isn't done.
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What will we 'piss away"? Share value? OMG, the humanity!

A crisis? Unavoidable my dear friend. At the end of the day it's all about housing and liquidity ain't the solution. This revalue is predicated upon a bunch of economic factors more engulfing than reduced cost of carry. Think JNPR, 2001-2002. It's not about the Fed window.

Inflation is a vis' a lower dollar is however the Fed's perusal. AAA, you just cannot allow a situation where you PUNISH savers by keeping rates artificially low while consumer prices and commodities ratchet higher. Fighting recessions in such a manner is rather South American, eh? Hence $900 Gold.

And what about Trichet and the ECB?
 
Quote from AAAintheBeltway:

I think Bernanke is developing into something of a disaster as Fed Chairman. He is close to having the markets totally lose confidence in him. The last time that happened was with Jimmy Carter's Fed Chairman, and the results were not pretty.

I said before the last meeting they should cut 50 bps, and I was attacked by many of you. Now, after saying risks were contained, Bernanke will be forced to cut at least 50. Fed futures are now pricing in incredible cuts by summer. He looks like a friggin' idiot. The banking system is coming down around his ears, FNM and FRE will require huge bailouts, there is no way the bond insurers can make good on all their exposure, and people are worrying about the cost of corn or oil? If you want ag prices down, do something about the idiotic ethanol policy. If you want oil down, talk to the Saudis. Oh wait, Bush already did that and they told him to f*ck off.

Bernanke's incompetency is now leading to congress wanting to pass "economic stimulus", which will be some collection of the most mis-guided giveaways possible. Incredibly, Bernanke seems to be encouraging it. He seems to lack the respect of his fellow Fed members, as they seem to feel free to go out and say whatever crosses their mind. This did not happen with Greenspan.

I will repeat my advice. We have a serious financial problem. One way to make things better in a hurry is to lower rates aggressively. There are costs to that policy but they pale in comparision to what we will piss away if somethng isn't done.
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I couldn't have said that better. Right on brother.
 
Quote from The Kin2:

You're a very amatute troll. You know that right? Take a few lessons from detective aka stock tr3der.
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Why do you bother to respond? When your argument fail you resort to attacking? Pretty soon you will start finding faults in my syntax and grammar. Thats what people do.

The fact remains BERNANKE is behind the curve. He reacts rather than leads, his stupid policies are bringing on a recession and a collapse of banking and financial sectors, and lastly our great bull market , that has enriched all of us.
 
Quote from Pa(b)st Prime:

What will we 'piss away"? Share value? OMG, the humanity!

A crisis? Unavoidable my dear friend. At the end of the day it's all about housing and liquidity ain't the solution. This revalue is predicated upon a bunch of economic factors more engulfing than reduced cost of carry. Think JNPR, 2001-2002. It's not about the Fed window.

Inflation is a vis' a lower dollar is however the Fed's perusal. AAA, you just cannot allow a situation where you PUNISH savers by keeping rates artificially low while consumer prices and commodities ratchet higher. Fighting recessions in such a manner is rather South American, eh? Hence $900 Gold.

And what about Trichet and the ECB?
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What I meant by "piss away" was that the venal idiots in congress and the administration are now in a panic to shower people with money under the guise of stimulus. Plus, if things continue on their current trajectory I can see FNM and FRE lining up at the Treasury for a taxpayer-funded bailout. If a couple of bond insurers go insolvent, which could easily happen, do you think congress will just let muni debt get destroyed? Not in our lifetimes. So by the time the smoke clears, we will have wasted hundreds of billions of dollars.

I fully understand the concerns about inflation, the dollar, moral hazard, etc but we're in a situation where we have to choose between less than ideal options. A big drop in rates lowers the temperature and gives the financials some breathing room. Plus, it is inevitably going to happen eventually anyway. That is my main beef with Bernanke. He has fiddled while the pot boiled over.
 
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