Think the Feds outta bullets... think again!

Quote from bond tr4der:

I won't be surprised if at future meetings we see statements like this:


Today the Fed has decided to set a target of .75% on the 2-year note; 1% on the 5-year bond; 1.75% on the 10-year; and 2.25% on the 30-year.

Then the fed would have sorts of bullets... For example, the fed could cut the target on 30-year bonds 50 bps. All other targets remain the same.

When the entire yield curve is flat at 0. Then and only then I will agree the Fed is out of bullets.
Sorry, but you're the biggest asswipe I've encountered thus far on this board. You're more pathetic than you're evil twin, stock_tr4der. Why don't you suggest that the FED simply arrest all sellers, regardless of whether they're getting out of long or selling short, and ban them for life from ever participating in the market? Now that will prop up the market!
 
Quote from saliva:

Sorry, but you're the biggest asswipe I've encountered thus far on this board. You're more pathetic than you're evil twin, stock_tr4der. Why don't you suggest that the FED simply arrest all sellers, regardless of whether they're getting out of long or selling short, and ban them for life from ever participating in the market? Now that will prop up the market!

Fuck you. I don't believe this is the prudent economic thing to do, but Bernanke has already said this is what he will do. Even before he became a Fed chairman, he gave a speech on how to battle deflation when the Fed funds rate is near zero which explicitly called for setting a target on the longer dated maturities on the yield curve. Your backlash tells me I've pressed a button likely because you're losing money due to current economic policies.


Fuck you.
 
Quote from bond tr4der:

Your backlash tells me I've pressed a button likely because you're losing money due to current economic policies.


Fuck you.
In your wildest dream. But then again, I don't trade bonds. But I know this much. Bernanke is a clueless idiot and you're not much better off.

Speaking of which, what the fuck has Bernanke done for the economy since he's been slashing the interest rate down to zero? Nothing. What makes you think his future action will help? Worst yet, does anyone think that retarded TARP plan will actually save the economy? Don't be an idiot!
 
Quote from gnome:

6 months ago it took $1BILLION Zimbabwae Dollars (?) to buy 2 cans of beans and a can of soup.

Think we'll top that?

Think that will be good for anyone's finances?

ok, -ever- was hyperbole... after all, germany did it in the 20s.
 
Quote from scriabinop23:

ok, -ever- was hyperbole... after all, germany did it in the 20s.

Another recent but less extreme example was Turkey from 1982-2005. Recalling from memory....

1. The Turkish stock market soared more than 2 MILLION Percent.

2. Even if you were 100% long the market and "caught it all", you STILL lost 98% of your buying power.

3. Before the issuance of the "New Lira" in 2005, a cup of coffee cost $3 Million Lira.

Once these inflationary currency debasements get momentum, hard to stop... they can go parabolic and destroy everybody holding that currency. In other words, "so what if you made a bazillion percent... you're still wiped out"..
 
Quote from gnome:


Once these inflationary currency debasements get momentum, hard to stop... they can go parabolic and destroy everybody holding that currency. In other words, "so what if you made a bazillion percent... you're still wiped out"..

Foward splits are no better than reverse splits!
 
Quote from scriabinop23:

But they aren't out of bullets even after they make the yield curve all 0. Then they can start printing money and sending it to everyone personally... they can also buy the entire stock market etc.
Bernanke made no bones about this possibility but how likely will that play out in reality? If I'm not mistaken, we're not talking about printing only a few million worthless paper money. This will be of a historic propotion and it will carry a huge repercussion around the globe since every damn country practically holds a sizeable stash of our dollar. I wonder how China in particular would react should we take such a drastic measure?
 
Quote from saliva:

Bernanke made no bones about this possibility but how likely will that play out in reality? If I'm not mistaken, we're not talking about printing only a few million worthless paper money. This will be of a historic propotion and it will carry a huge repercussion around the globe since every damn country practically holds a sizeable stash of our dollar. I wonder how China in particular would react should we take such a drastic measure?

Such measures are ones of desperation. Historically, when a government resorts to heavily printing money, its citizens' wealth is at great risk.
 
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