It's not meant to help YOU or the people or small business or the job market.
these rate cuts are hilarious
- Thread starter Poole
- Start date
It's not meant to help YOU or the people or small business or the job market.
Very, very good post and I agree with many of your points 87.
Mervyn King though is subject-like Bernanke-to a prevailing political wind that favors growth (or recession avoidance) over price and currency stability. The lessons from the inflation tribulations of Edward Heath's government are long forgotten.
It'll be Trichet's game of chicken that'll be the catalyst for some great trading.
Thus lies the rub. Rate cuts are wonderful stimulus when used to urge borrowers to buy under valued assets. When markets-as they do every so often-decide to revalue then cost of carry is a minor consideration. It was like the idiots who felt Greenspan waited too long to ease during late 2000. As if a lower Funds rate was the mere arbiter between JNPR trading $250 or $5.
Housing is in the same situation as circa 2000 tech. Perhaps home prices are no where near as bubblesque as CMGI was but then again the banking system and half of America weren't long tech on 90% margin.
I agree with the premise that our monetary (and fiscal) policy is more akin to Japan than anyone. However did an accommodative to the max BOJ save Japanese asset prices? Not even close. In fact to this day the Nikkei is the first index to go sellers on a hint of weakness. When a Manhattan co-op in next years death spiral goes from 2mil to 780k the collapse won't be predicated on the Fed's open market operations.
Japan is a semi-socialist one party state, in no way comparable to the US. It should come as no surprise that a lowering of the price of money did nothing for them, because price never did control that economy. Politics and gangsters did, and still do.
Here in the US, a lowering of the price of money will, with a lag, work, because this is a free economy underpinned by a multiparty republic.
Here in the US, a lowering of the price of money will, with a lag, work, because this is a free economy underpinned by a multiparty republic.
I don't mean to be rude, but this is just plain delusional.
WHAT?
I would not even know where to start, but I will finish with this. There is no way you or anyone can even show how this is a free economy when we have a central bank. A central bank is one of the key cornerstones of the Communist Manifesto.
Guys - here's the best weekly summary of equities, rates, commods and currency I know of so take a minute and read it. In fact, if you at least read the market summaries and ignore the bearish commentary every Saturday, I guarantee you'll spot a market somewhere in the world that's wrong - just by knowing the YTD % or 5day % up or down. It prints money for me anyway.
Anyway, to the point, look at some of those news stories more toward the middle - particularly from FT and Bloom. They're very alarming. You don't have to be a surgeon to know this whole credit mess is one sick fken patient that isn't getting better so far.
http://www.prudentbear.com/index.php?option=com_content&view=article&id=4842&Itemid=55
Anyway, to the point, look at some of those news stories more toward the middle - particularly from FT and Bloom. They're very alarming. You don't have to be a surgeon to know this whole credit mess is one sick fken patient that isn't getting better so far.
http://www.prudentbear.com/index.php?option=com_content&view=article&id=4842&Itemid=55
Big money being made on this:
Odds of a half-point cut, which were 2 percent a week ago, reached 52 percent as of 4:17 p.m. in New York.
I don't know how to do it though.
Odds of a half-point cut, which were 2 percent a week ago, reached 52 percent as of 4:17 p.m. in New York.
I don't know how to do it though.