Rates at 1% again, what's the next bubble?

short&naked · Oct 29, 2008

Quote from crgarcia:

?

Doesn't mean that money is being lent out. So not necessarily another bubble.

S2007S · Oct 29, 2008

Quote from mister_doodi:

credit card

Credit Cards is next.

Aside from that who knows where the next bubble is, too many bubble in the last decade were created on historical low interest rates and here we are again with historical low interest rates which will not do a damn thing for this economy. I feel sorry for anyone who actually thinks these rate cuts will help. THEY WONT.

timcar · Oct 29, 2008

I guess big Bill Fleckenstein will soon be writing a book about BEN Bernanke and how bad a job he did at the FED. telling us how wrong it is to lower interest rates to 1%.

The idiot that is Bill Fleckenstein does not understand that just because interest rates are low and money is cheap that all lenders should lend to everyone and anyone. However, most lending institutions did just that and many are gone (NCC, WM, CFC) not to mention all those mortgage broker firms.

lrm21 · Oct 29, 2008

There are no more bubbles.

There is no one left to lend to.

Inflation may not come for some time.

We are facing deflation for the moment look at all assets

Metals. real estate, stocks, commodities, everything is going down.

the only thing going up. $US DOLLAR

The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression, is the unavoidable outcome of the attempts, repeated again and again, to lower the gross market rate of interest by means of credit expansion. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

-Ludwig Von Mises, Human Action
http://mises.org/humanaction/chap20sec8.asp

PohPoh · Oct 30, 2008

Quote from S2007S:

Credit Cards is next.

Aside from that who knows where the next bubble is, too many bubble in the last decade were created on historical low interest rates and here we are again with historical low interest rates which will not do a damn thing for this economy. I feel sorry for anyone who actually thinks these rate cuts will help. THEY WONT.

SO I guess that means we should all run up our credit cards since the Gubbbbbmint is gonna pay for it and bail out all the Visa and Mastercard peeps...

I'm going shoppin...

SethArb · Oct 30, 2008

saw this headline on the newswires

-The People's Bank of China yesterday reduced its benchmark one-year lending rate to 6.66 percent from 6.93 percent. -

I am waiting for China to reduce to 0 %

nazzdack · Oct 30, 2008

Quote from SethArb:

?........6.66 percent.........!

That sounds like a Halloween Prank.

nutmeg · Oct 30, 2008

The unluckiest number is four as it sounds like the Chinese word for death.

At 5 we have resistance.

blackjack007 · Oct 30, 2008

people falsely assume that low rates necessarily cause a bubble. sometimes they do, sometimes they don't.

what was japan's bubble the last 15+ years?

what was the usa's bubble from the early 50s to mid 60s when rates were consistently low?

low rates didn't solely cause the latest housing bubble, it was primarily caused by loose credit. low rates just made it worse.

gnome · Oct 30, 2008

Quote from nutmeg:

The unluckiest number is four as it sounds like the Chinese word for death.

Oh, NOW you tell me. 4 is my favorite number... explains why I never have any luck with Chinese chicks...