50BP is an admission of disaster. 25BP would have appeased nearly all constituents and by actually cutting, Bernanke could have avoided being branded as a monster who threw childen out onto the street. 50BP tells me it is as bad as everybody thinks it is and FAR worse than the gummint and its mouthpieces has been saying it is.
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No one was wrong today. However you bulls better be prepared.
- Thread starter athlonmank8
- Start date
50BP is an admission of disaster. 25BP would have appeased nearly all constituents and by actually cutting, Bernanke could have avoided being branded as a monster who threw childen out onto the street. 50BP tells me it is as bad as everybody thinks it is and FAR worse than the gummint and its mouthpieces has been saying it is.
Quote from athlonmank8:
The economy is fine. Mortgages blew up and housing crashed. The market will play out and price it in. They're cyclical markets, IT HAPPENS. Let the market take care of them. If we go into a recession....we go into a recession. The worst think we can do right now is lower rates when the dollar is in the state it's in combined with record deficits. You NEED to stabalize the currency in order to successfully reduce debt prices.
Says you. Obviously housing is in the tank. Subprime loans are in the tank. The question becomes whether this affects other things. Ya think maybe furniture sales might slow as home sales slow? Autos in the tank.
The dollar is in the tank too. But that seems to be the only thing you're concerned about. And frankly, the Fed's job is to lean against the wind on inflation, or on potential recession. The Fed's job description says nothing about supporting the dollar.
OldTrader
it seems like it was just a path of least resistance for bernanke. he satisfied the political and financial industry hands that feed him, he got to exercise some jutzpah with his first cut which was a deviation from the academic typecast and an 'in your face' to gspan... he can't be faulted by the general debt mired public for not trying... boomers get at least a temporary reprieve from housing price concerns, the federal govt can persist at breaking precedents in printing and spending, republicans are safe through the election and it's a hedge against a democratic victory, etc
it's just a bandaid on a 30 year old structural problem. no politician or appointee is going to administer the bitter pill... the dollar will simply have to collapse before we can achieve truly sustainable monetary and fiscal policies
in typical bush era fashion, it will be someone else's problem. as much as i respect his credentials, bernanke seems to be basically one more shill in a long legacy of unsustainable US economic policy makers, but at least he's here until 2010, so the potential exists for (some) accountability
if you're leveraged, sit back and enjoy the helicopter money basically. when the boomers all start tapping their fixed incomes we'll probably start to see some political pressure for realistic rates
it's just a bandaid on a 30 year old structural problem. no politician or appointee is going to administer the bitter pill... the dollar will simply have to collapse before we can achieve truly sustainable monetary and fiscal policies
in typical bush era fashion, it will be someone else's problem. as much as i respect his credentials, bernanke seems to be basically one more shill in a long legacy of unsustainable US economic policy makers, but at least he's here until 2010, so the potential exists for (some) accountability
if you're leveraged, sit back and enjoy the helicopter money basically. when the boomers all start tapping their fixed incomes we'll probably start to see some political pressure for realistic rates
so are you short now?
Quote from athlonmank8:
For fuck's sake, i've seen some crazy stuff over the past 8 years but this one takes the cake. Anyone who says Greenspan was a moron is simply incorrect. Greenspan knew what he was doing. But this time it's different. Bernake doesn't have all the angles on this. He's putting us into deep trouble with this move and all the idiots who've never seen through a recession wouldn't know one if it slapped them in a face.
The dollar is CRUMBLING and now our foreign investors are sittin there up shit creek. Sooner or later the burden is going to be placed on our shoulders and we wont be in a position to handle it.
From a technical standpoint we're bullish. (i've switched from bearish to bullish today as hard as it is to say and now am positioned for new highs).
HOWEVER, from a fundamental standpoint we should not have cut rates plain and simple.
I can't believe all of the guys on here saying the bears were wrong today. You guys certainly deserve what's coming to you. However in the meantime, enjoy your new highs in the market.
The true test will come and you wont be prepared. Shorts know how to cover...but bulls will ride it down screaming the whole way.
Quote from loza:
so are you short now?
no.
but it's hard not to be.
Difference between 2001 and now. That's the dollar right there. Dont you guys get it?! Someone tell me why this is a good thing. Remember 2000 everyone? I sure do. Things were great. Now you see why. The strong dollar helped us all. This time things are different. We're going to depress the dollar into a situation that's not revivable and we're going to pay the fucking price. How come no one understands this?! Someone with the balls explain this situation on a positive note. I'd LOVE to see how you do it.
http://futures.tradingcharts.com/chart/US/M
it's too bad gspan didn't grow a conscience until retirement
Quote from OldTrader:
"... the Fed's job is to lean against the wind on inflation, or on potential recession. The Fed's job description says nothing about supporting the dollar.
OldTrader
That is sooooo wrong. The Fed's job is to "CREATE inflation while hoodwinking the public into believing the Fed fights inflation".
The Fed will eventually inflate us into oblivion and bankrupt us all.
Wow...i didn't expect the markets to figure it out today. Tomorrow will be red....
Good fucking job Bernake you piece of shit.
Good fucking job Bernake you piece of shit.
Quote from mschey:
As I've said.....they are smarter then you, they know more then you, they have better data, stop being a tool, and start thinking about how you will trade and make money in this environment.
BTW....read their policy statement and they make it pretty clear what their concerns are going forward!
Pretty much sums up my thoughts....