Why in the world would he cut a day before the meeting? He would look like such a amateur doing that.
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Will Bernanke blow it on Wed?
- Thread starter turkeyneck
- Start date
Why in the world would he cut a day before the meeting? He would look like such a amateur doing that.
I don't even think it matters if he does a 75 cut. Market will just puke it back up a few days later. Path of least resistance is down.
Kindly choose your topic: the economy or the state of your trading account.Quote from DHOHHI:
Get a clue. Bernanke isn't responsible for the state of the US economy. Consumers choose consciously to take on more debt, refinance, buy SUV's. Besides if you played both sides of the market you'd not care if the market went up or down.
True, you can play either side and not care which direction the market moves so long as you are on the right side of it, insofar as your trading account is concerned. However, when you refer to the economy and the piggish nature of the consumer who keeps taking on more debt, let us not forget who has made excessive borrowing so irresistible with invitingly and artificially low interest rates. True, the drug addict is responsible for his own conduct. But the pusher plays more than just a spectator role.
Quote from Thunderdog:
Kindly choose your topic: the economy or the state of your trading account.
True, you can play either side and not care which direction the market moves so long as you are on the right side of it, insofar as your trading account is concerned. However, when you refer to the economy and the piggish nature of the consumer who keeps taking on more debt, let us not forget who has made excessive borrowing so irresistible with invitingly and artificially low interest rates. True, the drug addict is responsible for his own conduct. But the pusher plays more than just a spectator role.
Re-read the topic. People who start these threads are clearly wanting some action due to their accounts suffering. Likely people who are mostly long. Suggesting Bernanke may be to blame makes no sense IMO.
As far as cheap credit - I'm against it. Cutting rates isn't the solution. Many people are undisciplined as far as their spending. Many need to learn a lesson the hard way. Let them declare bankruptcy. Then make them pay for things they can actually afford with cash. Sometimes a tough painful lesson is the best medicine.
Okay, we generally seem to be on the same side of the argument. Just that I don't think the Fed is blameless. As a result of boneheaded monetary policy, the Fed had a hand in not letting the economy do its thing: cycle. It has contributed to the bubbles and, therefore, to what followed. And here we go again...Quote from DHOHHI:
Re-read the topic. People who start these threads are clearly wanting some action due to their accounts suffering. Likely people who are mostly long. Suggesting Bernanke may be to blame makes no sense IMO.
As far as cheap credit - I'm against it. Cutting rates isn't the solution. Many people are undisciplined as far as their spending. Many need to learn a lesson the hard way. Let them declare bankruptcy. Then make them pay for things they can actually afford with cash. Sometimes a tough painful lesson is the best medicine.
An observation, if I may. At one time, it was believed that all forest fires were bad. However, we now know that forest fires play an important role in forest ecosystems, and that the suppression of all forest fires can be a dangerous practice that can lead to truly out of control blazes. Essentially, natural forest fires are a cyclical thing that need to be played out, at least in a controlled manner, to help maintain the forest's health and diversity. So, the challenge is one of managing forest fires rather than extinguishing all of them as a matter of course.
And so it is with the Fed. Rather than let the market undergo its necessary cycles to help maintain its health and diversity, the Fed intervenes excessively and is setting the groundwork for a blaze that may well be substantially disproportionate and beyond the hope of intervention. The Fed continues to overplay its hand and that does not bode well for the future.
And so it is with the Fed. Rather than let the market undergo its necessary cycles to help maintain its health and diversity, the Fed intervenes excessively and is setting the groundwork for a blaze that may well be substantially disproportionate and beyond the hope of intervention. The Fed continues to overplay its hand and that does not bode well for the future.