people are asking for more rate cuts, why I have no clue, liquidity is drying up fast as the yen carry trade continues to unwind. The federal reserve should not have pumped in billions of dollars to create more liquidity because its only going to create more problems, its all fun when everyone is making money, look what it has led too, every bank is writing down billions of dollars, inflation is on the rise and consumer spending slowdown due to high rate of foreclosures and arms resetting. This is going to take years to fix, do not think that a series of rate cuts is going to make things better, its only going to do worse. The market has had its run, the bull market is now 5 years old and very tired, expect a bear market sooner than later.
New Year Fast Approaching: Bernanke = 2007 Jackass of the Year
- Thread starter ByLoSellHi
- Start date
If helicopter Ben cuts rates again, especially on an 'emergency basis' in the next week or so, he'll seal his nomination for Jackass of the year.
He is the idiot schoolmaster, mumbling into his beard whenever inflation is mentioned.
He says inflation is 2% and the weak dollar won't affect Amreicans because they buy their [imported] goods in dollars. I mean there is something seriously wrong when that is the level at which the masses are being talked to.
Jackass is too kind. He is a cheat and a criminal and should be prosecuted as such. After demonstrating his total incompetence by doing nothing he then acted on options expiration day after tipping off Wall St they day before. Never mind the Federal Reserve (it's a Governmment institution, right Jacob?) , he should be in some other kind of Federal institution - the kind that issues orange jump suits.
He says inflation is 2% and the weak dollar won't affect Amreicans because they buy their [imported] goods in dollars. I mean there is something seriously wrong when that is the level at which the masses are being talked to.
Jackass is too kind. He is a cheat and a criminal and should be prosecuted as such. After demonstrating his total incompetence by doing nothing he then acted on options expiration day after tipping off Wall St they day before. Never mind the Federal Reserve (it's a Governmment institution, right Jacob?) , he should be in some other kind of Federal institution - the kind that issues orange jump suits.
Haha, everything can be solved by hedging with futures... LOL. What a solution, everyone fend for themselves, don't ever trust the nation's currency, and only hedge after its readily apparent that the dollar has been devalued and oil has shot up to $95! Craploda for Monday morning quarterback of the year!
Congrads. You get the prize for the most economically illiterate post I've had the misfortune to read on this misbegotten board.
That no one is laughing at the breathtaking idiocy on display here speaks volumes about this board.
Precisely the course you advise the Fed to follow is what they did in the early Thirties. As Milton Friedman pointed out, their actions were even contrary to the economics of the gold standard at the time. They did manage to give the country another decade of economic Hell, though.
No Fed head would ever repeat that kind of stupidity.
Oh really, makloda? Why not look and see how much it's been devauled this year alone? Or how about since August (since Ben started dropping money by the ton)?
You're correct, one can go long Euro, oil, gold...whatever. But the fact of the matter is that Americans are punished by the weak dollar in ways we cannot exactly hedge against. Everything I own and buy is in dollars and my purchasing power is being degraded. Additionally, there are many out there who rely on the government to "do the right thing". Old people with retirement funds in CDs that reflect rates, while at the same time being subject to a massive shock in oil and heating prices.
The ECB has one goal - price stability. That's it. The Fed has two goals, price stability and stroking the fires of growth. The problem is that the two are often in conflict with one another, and the Fed goes back and forth as to what is important.
So what's the solution for all the middle class Americans? Should the Fed jack up interest rates up 10%, so all homebuilders and lenders go bankrupt, so hell breaks lose in all industrials, so banks accumulate more bad debt? A sweet 2-3 years of recession with millions of jobs lost, forever. Never coming back.
Yes, oil would goto $50 and the dollar could probably rally 20-25% in that scenario as capital is withdrawn from risky assets overseas and repatriated into to the US in risk free assets. Just no one will have any jobs to pay at the pump or to spend any money.
All you smart asses... explain to me how the "average American" you're all so worried about will do well with interest rates at 10% in a global recession.
Yes, oil would goto $50 and the dollar could probably rally 20-25% in that scenario as capital is withdrawn from risky assets overseas and repatriated into to the US in risk free assets. Just no one will have any jobs to pay at the pump or to spend any money.
All you smart asses... explain to me how the "average American" you're all so worried about will do well with interest rates at 10% in a global recession.