What they refuse to admit is commodity prices are no longer transitory. The fed is micro managing this economy and doing a terrible job.
After all these rate cuts a 30 year mortgage is now back over 6% yea great job their doing just great.
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Fed's Kohn on Crack. See's Inflation Moderating
- Thread starter Ivanovich
- Start date
What they refuse to admit is commodity prices are no longer transitory. The fed is micro managing this economy and doing a terrible job.
After all these rate cuts a 30 year mortgage is now back over 6% yea great job their doing just great.
Quote from makloda:
Reg. the discussion of core vs. headline inflation as a basis for Fed policy:
http://www.reuters.com/article/ousiv/idUSN2524414220080226
"Federal Reserve Governor Frederic Mishkin on Monday defended the central bankâs emphasis on core inflation, saying an emphasis on less volatile prices produces a stronger economy in the long run"
Come on, Mak. This is pure horseshit and they (and you) know it. In the past, energy and food were considered "volatile" because they were all over the board. Sometimes largely up, sometimes largely down.
In today's inflationary environment, you cannot exclude them because they are no longer volatile in the sense that they were back when they were originally removed. They are volatile because they are up ALL the time. And up greatly. At some point someone has to harnass enough brainpower to go "Shit, you know we need to include these back in to the figure. They've become relevant again."
Quote from Aaron Copland:
All the more reason for a much needed recession. You can not grow non stop around the world and expect inflation to remain low.
What we need is a global recession to correct commodities. They appear to no longer be transitory. This is serious stuff.
That's right.
Put the entire banking system into a "depression" just to force a correction in commodities.
That makes a TON of sense.
As it is, a couple of weeks ago the Port Authority of NY had to pay 20% in order to finance $100 million of short-term debt to the next auction because banks like Goldman and Citi chose to "back-away" . . .
And you want the FED to raise rates?
You clearly have no idea what you are talking about.
There wont do anything until CNN broadcasts violent food protests all over the world.
Quote from Ivanovich:
Really? Back then? I don't think so.
the Fed cut 50bps and the same day (hell, the same minute) oil took off and never looked back.
I believe that the short-interest figures would confirm my claim.
On another note, have you ever heard of this country called CHINA?
Guess not.
Look, as sickening as all this is, and I swear I want to throw up every time I see/hear/read what these assholes are doing, the fed is in the midst of the wholesale devaluation of the dollar. There really is nothing more that can be said on this. Th senile old fool started this and the bearded flake is reading from the same textbook. How else do you guys think they plan on fixing housing? Every time I read about sabilizing housing it just makes me cringe. How can you possibly stabilize an asset that bubbled to unheard of proportions? Simple, you make that 800K house today, be worth 400K in 2 years by todays money. It's really not rocket science. If you happen to destroy savers along the way, well fuck'em most people are in debt anyway so it helps the greater good. Like I said just sickening to watch all this play out in front of our faces.
Quote from Landis82:
I believe that the short-interest figures would confirm my claim.
On another note, have you ever heard of this country called CHINA?
Guess not.
Ah, so sarcasm creeps in when you have no other explanation. And here I was thinking we could debate this intelligently without the need for being pricks. At least I was only wrong about that belief.
"China" is not the reason oil took off at the exact moment the Fed suprised the market with a 50bps cut. It definitely is part of the reason oil has stayed so high for so long, but a weak dollar began this last leg up - and THAT is the work of the Fed cutting rates.