New Year Fast Approaching: Bernanke = 2007 Jackass of the Year

[ASusilovic]

Quote from makloda:

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Yes, oil would goto $50 and the dollar could probably rally 20-25% in that scenario as capital is withdrawn from risky assets overseas and repatriated into to the US in risk free assets.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.

It seems the "average American" likes to suffer...at least some ET members...appropriate FED FUNDS while economy is expanding at 3,8 % GDP rate is about 5,75 - 6,0 %...gonna call BEN and ask him about some off-balance sheet structured high yield "FED FUND CDO" rates...maybe with the little help by our structured product MASTER IB´s as there are MER, BSC, MS, JPM, WB...

 

[detective]

Quote from makloda:

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.

Actually, with interest rates going up to 10%, the banks would be able to clear off the excesses that were produced by haphazard lending and finally respect credit risk, instead of treating it as something that adds to yield with risk that can be handed off to the "next" guy. So they would be getting rid of overpriced bad debt not accumulating it.

Jobs never coming back? I bet they said the same thing in recessions in 1990-1, 2001, etc. Recessions are part of the business cycle. That's why they call it a cycle, not a business ramp with only booms and no busts.

 

[Tums]

Quote from ByLoSellHi:

He's got my vote.

He tells the American People with a straight face that inflation is contained, U.S. policy supports a strong U.S. Dollar, while he cuts interest rates (to no good effect), causing the dollar to plunge, inflation to surge, and then he adds insult to injury by using taxpayer dollars to inject hundreds of billions of printing press cash to try and rescue institutions holding bad mortgage debt and CDOs.

Who has yours and why?

if you have made money during the year, he is a genius.
if you have loss money during the year, he is a jackass.

 

[gnome]

Quote from Tums:

if you have made money during the year, he is a genius.
if you have loss money during the year, he is a jackass.

That's not the issue. The Government and Fed are debasing the $USD. Eventually, when the Dollar has declined enough, it means BANKRUPTCY for nearly all Americans.... REGARDLESS OF HOW MANY $MILLIONS YOU'VE ACCUMULATED... YOU WON'T BE ABLE TO BUY HARDLY ANYTHING WITH IT. IT WILL BE LIKE HAVING EXCHANGED YOUR "MONEY" FOR "MONOPOLY MONEY".

That's the issue, and our "leaders" should not be doing this to us.

 

[detective]

If you are holding dollars or have to hold dollars because of your holdings, you should think he's a jackass. He's a genius only if you think he's gonna save the economy and housing with interest rate cuts.

 

[Tums]

Quote from gnome:

That's not the issue. The Government and Fed are debasing the $USD. Eventually, when the Dollar has declined enough, it means BANKRUPTCY for nearly all Americans.... REGARDLESS OF HOW MANY $MILLIONS YOU'VE ACCUMULATED... YOU WON'T BE ABLE TO BUY HARDLY ANYTHING WITH IT. IT WILL BE LIKE HAVING EXCHANGED YOUR "MONEY" FOR "MONOPOLY MONEY".

That's the issue, and our "leaders" should not be doing this to us.

try to think in terms of foreign debt in US dollars.

... think about the Chinese holding of US dollars... ;-)

every time there is a crisis, there is opportunity.
which side of the crisis you are on? the decision is yours.



p.s. do you honestly think US$ will go down forever ???

 

[bellman]

Easier said than done. He, and those around him, know first what the fed will do next, and we do not. Is it smart to trade against the insiders?

Quote from makloda:

Anybody hoping for an improvement of their own personal financial situation by pointing fingers at the Fed or the government is delusional. You've all got trading accounts. If you're all so much smarter than Bernanke then why not beat him at his own game. Speculate against him.

 

[gnome]

Quote from Tums:

try to think in terms of foreign debt in US dollars.

... think about the Chinese holding of US dollars... ;-)

every time there is a crisis, there is opportunity.
which side of the crisis you are on? the decision is yours.



p.s. do you honestly think US$ will go down forever ???

Historically, when governments have gotten themselves into trouble and have resorted to "print money" to buy time.... the result has ALWAYS BEEN THE SAME... the currency goes to "near zero" before a revaluation. There are HUNDREDS of historical examples.

America isn't sliding as fast as Turkey recently, nor Rwanda... but we're on the same path.

The Baby Boom generation will likely see the $USD fall to 25 or 10 or even lower during their lifetimes. The generations after will see it even worse.

So, if you lose 75% of your buying power... or 90%...or 98%, what kind of pressure is that upon you to "keep up" your buying power and net worth? (Don't forget, TAXES all along the way to reduce your poke even further.)

The $USD may not go to zero in my lifetime, but it will come close enough to cause severe financial stress. And my own "elected leaders" will have done it to me... and everybody else.

Can't be sanguine about any of this...

 

[MarketMasher]

Quote from makloda:

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.

This isn't about the "Average American"!!

What happened to the Republican conservatism and individuality everyone voted for? Fending for yourself?!! There is raw meat on the floor and you better start behaving like jackals and tear and rend your piece!

You want to be coddled by liberal socialists when you should be answering your true nature and thanking the Fed!

 

[stock777]

Never trust anyone with a beard.