9/18/07 - A Sad Day For America

Discussion in 'Economics' started by aeliodon, Sep 12, 2007.

  1. Well its pretty clear that Ben is going to give the first signal that he is going to try to inflate his way out any potential economic weakness no matter how minor. In doing so, by lowering rates - he is basically saying to the entire world that he is willing to devalue the hard earned savings of responsible individuals and businesses to bail out the irresponsible and immoral individuals and businesses.

    Guess who gets hurt by inflation the most - the poor and middle class who don't hold inflation hedges like real estate, stocks, bling, and foreign currency like the ultrarich do.

    I retract this thread if Ben takes the high moral ground by not cutting rates - but I think he's lost his opportunity to talk down the fed fund futures.
  2. People who save during these high-inflation times are idiots. Just buy assets which will match inflation. Once this sub-prime mess is over, real estate is gonna boom once again.
  3. "Immoral individuals" are what keeps America strong! Honest peoplw who save hate America and are fucking up the economy. Just spend spend spend on anything that appreciates.
  4. john12


    i agree he's sacrificing everyones savings to save a few. thats fuckin bullshit. this country's heading to 2nd world status and nobody outside a few have a say in it
  5. These high inflation times? Where?
  6. Walmart is changing its slogan from "Always low prices" to "Save Money. Live Better."

    Could be foreshadowing of things to come.
  7. Realist


    Inflate or Die is the new mantra...

    Kill the Dollar or the Economy? From a political standpoint the Fed always gives in. Volcker was the exception and not the rule. The general public worries more about their jobs and housing more than the dollar or inflation. Therefore the obvious choice is to save the economy at the expense of plunging the common share of the US further into the abyss...
  8. http://www.homelandsecurityus.com/options082907

    $1 Billion in suspicious stock activity reminiscent of pre-9/11 conditions

    29 August 2007: In the weeks preceding the 2001 attacks on America, there were very significant financial warning signs that something big – and bad – could be about to happen. Huge surges in purchases of “put options” on stocks of United Airlines and American Airlines, the two airlines used in the attacks, and “put options” on Merrill Lynch & Co., and Morgan Stanley, stocks of two financial services companies hurt by the attack were noted. Put options are essentially “bets” that a stock or stock index will drop on or before a certain date; the larger the drop, the bigger the gain for the purchaser of the option.

    Fast forward to the present day, and we have the same type of trading that took place in the days that preceded the 9/11 attacks – but on a larger scale. Nearly $1 billion of “put options” have been purchased, basically betting that Standard and Poor's 500 index will fall significantly by the third Friday in September. A large number of these options have also been purchased calling for 50% decline by September 21, 2007. For example, a 5% drop in the Dow Jones Industrial Average would be the current equivalent of about 670 points. A decline of 11% would equal about 1,470 points in today’s market. Obviously, larger drops, such as a 50% decline, would cause an unprecedented market collapse. Money would be made for the purchaser(s) of the put options – but the same purchaser(s) stand to lose over $1 BILLION in the investment if the market remains relatively static through September 21, 2007.

    The questions are: who can stand to lose $1 BILLION, who will gain in the wake of such a devastating collapse, who are the investors, and what do they know that we don’t?
  9. gangof4


    i tend to agree.

    what bothers me with the talking heads and the politicians (and, seemingly, the fed) is that they seem to forget that pain is often a good thing. excesses need to be worked thru, not have some inflationary bandage that, in the end, will only exacerbate the problem and spread it .
  10. Huh?

    Gas, oil, corn, copper, lead, zinc, copper, HOUSING, FOOD, HEAT, tuition, etc etc

    You know, only the stuff we use daily :/
    #10     Sep 12, 2007