March Fed Funds Rate: 2.50%, Thanks Bernanke

[Ivanovich]

Quote from makloda:

Ask the Japanese how they feel about low inflation after the post 1990 debt fallout. Their central bank and policy makers were way too slow to react, causing a decade plus of deflation. In the process, they had to cut to 0% and their currency became toilet paper, too.

Our currency is also toilet paper. Even the afforementioned toilet paper has been gaining on the USD.

 

[thecalip]

Quote from makloda:

Ask the Japanese how they feel about low inflation after the post 1990 debt fallout. Their central bank and policy makers were way too slow to react, causing a decade plus of deflation. In the process, they had to cut to 0% and their currency became toilet paper, too.

Cause this because they run the market up so high that it takes years to adjust? So you want the US just like the Japan, run the market so high, and then try to control inflation. How low do you want the dollar to drop?

 

[Landis82]

Quote from thecalip:

Cause this because they run the market up so high that it takes years to adjust? So you want the US just like the Japan, run the market so high, and then try to control inflation. How low do you want the dollar to drop?

 

[NQscalper]

Quote from Landis82:

Given the MAGNITUDE of the crisis in the banking system right now with the money-center banks, I would say that no one really gives a damn about inflation.

In fact, why would anyone care about inflation if GDP was running into the negatives for several quarters in a row because the Fed is "pushing on a string" and the Economy rolls over hard?

If the banking system is as "frozen" as the FED is now finally realizing ( they were pretty slow to this fact until mid-January ), then there are a lot BIGGER issues at hand here than inflation.

Remember, the Port Authority of NY had to pay 20% a couple of weeks ago in order to finance $100 million of short term debt because the banks "backed-away" during the auction of these securities.

Unemployment, Bankruptcy, and massive state, local, and federal deficits due to lack of tax revenue from a sinking economy are just a few of the things that come to mind.

Yet, there is a fairly large group of posters on ET that keep clamoring for the FED to save the dollar by raising rates, reserver requirements, etc., so that the FED can engineer a correction in commodities . . .

Go figure.

Why dont you just admit you're stuck with a portfolio of financial stocks and just want the fed to rescue YOU. I'm so sick of reading the crap you idiots write about inflation not being the problem. It's by FAR the biggest problem facing most people in this country. Go tell a retiree on fixed income that he cant eat today so Citi can give its executives 160 million golden parachute. I'll believe that these financials are facing armaggedon when I stop seeing these insane bonus packages given to executives left and right. Let the banks fail or succeed on their own. If a bond insurer fails, so be it. Someone like Buffet will step in and start a new one. Its just sickening all this save me, save me crap going around. They made their bed now lye in it or burn in it. I should not lose the value of my money to save their fucking asses.