Spain, Ireland `Thrown to the Wolves' After ECB Move

[gnome]

Quote from Cesko:

Then this is not exactly inflationary environment nowadays.

Are your eyes welded shut? We are in a HUGELY inflationary environment.

The Fed has been pumping money into the system averaging in the TEENS the last 5 years and >20% rate recently.

http://www.nowandfutures.com/key_stats.html

It's almost like the Fed is intentionally trying to destroy the American way of life!

 

[asap]

Quote from gnome:


It's almost like the Fed is intentionally trying to destroy the American way of life!

what i see is the fed doing the opposite, that is, trying to save american's way of life by increasing the money supply and bailing out the blow outs here and there.

i mean one of the goals of the fed is keeping consumer spending at highest possible levels so the gdp output keeps its pace.

phuck inflation, bankruptcies and currency value. as long as they have some bucks to spend on the shopping mall, there is no problem whatsoever.

 

[gnome]

Quote from asap:

"... phuck inflation, bankruptcies and currency value. as long as they have some bucks to spend on the shopping mall, there is no problem whatsoever.

That's the short-term wind song. But unfortunately it ends with everyone having lots of paper dollars but they can't buy much and are effectively bankrupt.

 

[asap]

Quote from gnome:

That's the short-term wind song. But unfortunately it ends with everyone having lots of paper dollars but they can't buy much and are effectively bankrupt.

from a statistical standpoint that's irrelevant. those going bust will be rapidly replaced by fresh new big time spenders that will get easy money from the system to pump the engine to the next level. as long as there are new borns, a good educational system, these intermediate busts are just a rapid cancel & replace process.

who cares about homeless people anyway. welcome to 21st century laissez-faire. sad but true.

 

[gnome]

Quote from asap:

from a statistical standpoint that's irrelevant. those going bust will be rapidly replaced by fresh new big time spenders that will get easy money from the system to pump the engine to the next level. as long as there are new borns, a good educational system, these intermediate busts are just a rapid cancel & replace process.

who cares about homeless people anyway. welcome to 21st century laissez-faire. sad but true.

You're not getting it. In this play, we ALL GO BUST... all but the very richest.. but they still lose a high percentage of their net worth.

 

[cgtrader]

Quote from asap:

what i see is the fed doing the opposite, that is, trying to save american's way of life by increasing the money supply and bailing out the blow outs here and there.

i mean one of the goals of the fed is keeping consumer spending at highest possible levels so the gdp output keeps its pace.

phuck inflation, bankruptcies and currency value. as long as they have some bucks to spend on the shopping mall, there is no problem whatsoever.

Congratulations you are a graduate of the corporate media's "School of Brainwashing Idiots"

You may now cross the stage.

You really think the Fed cares about the general public?

WOW Wake up!

 

[Cutten]

Ireland and Spain (and other places) are facing recession because a large proportion of the population and financial system engaged in irresponsible gambling on real estate prices, using enormous amounts of borrowed money (i.e. other people's life savings). Not because the ECB chose to put rates at 4.25% instead of 4%.

I love this idea that a tiny difference in the central bank rate is the be all and end all of economic performance. You know, if rates had been higher over the last few years of obvious bubble, there *wouldn't be a recession* in the first place to have to worry about. How come the doves never consider that?

Leveraged gamblers live by the sword - they make huge gains during bull markets; so they should not moan when they die by it in bear markets as leverage works in the other direction. As a professional speculator, I am disgusted by the craven bleating and refusal to accept responsibility that the majority of these people are displaying.

Speculating is an honourable, noble, and productive activity. Whining because you couldn't hack it is not.

 

[Cutten]

Quote from makloda:

Please explain to me how the ECB single-handedly will influence EU headline inflation (including global energy and grain commodity costs) with their rate hike? Thank you.

Interest rates affect the supply of money. The money supply affects inflation.

Next question?

 

[Cutten]

Quote from Daal:

perhaps they should consider that they cant stop this inflationary shock. you can stop cancer from spreading by killing a patient that doesnt mean its a good idea. its not like .25 hikes will all the sudden produce more wheat

Google "Paul Volcker". Thanks.

 

[Cutten]

Quote from noparole:

Are you honestly saying the economy needs slowing down?

The economy is grinding to a halt without a rate raise.

I guess some things you can't learn from a book.

Google "Paul Volcker" + "1982 recession". Thanks.