I guess you're disaster for this board. And Bernanke is really bright guy. He doesn't have a choice and will cut but at least he tries to do it as slow as possible Cutting rates won't help here There is plenty liquidity and rates are affordable But asset bubble must deflate and Fed must stop give away money there is no simple solution for this crisis. Maybe we need something extreme - like nationalizing top ten investment banks, forbid hedge funds, license commodity trading, denounce free trade agreements But cutting rates it's so stupid.
Yes, you are probably correct. But I think this time the energy equation is different. Oil off - once US economy slows and imports decrease oil prices can really start falling. Note the selloff in schlumberger today. Re-evaluating my energy positions at present.
Our debt will be worthless b/c we are bankrupt. There will be hundreds of billions of dollars in bond defaults coming up. $9trln right now 11.5% rates will mean >$1trln in interest alone on our debt....
You are the freaking moron. The only way to save the economy is raise rate. Oil and Energy are all base on USD. When rate is cut, USD sink, and lead to higher energy price, which lead to everything higher. The real estate mess is cause by historical low interest rate. Of course, greedy bastards too. They get themselves into the mess, and they should find way to save themselves. So you are saying, we should save the real estate market and punish those who actually honest by savings like myself? Nowadays, I don't feel savings rewarding at all. However ways I calculate, I can NEVER afford to buy a house by with a traditional loan.
I can't imagine anything worse...Unless you add price controls to that draconian list. Those worked so wonderfully in the 70s. Let the markets take care of the excesses...it may mean things get a lot worse or maybe it's just another moderate drop from here. (No one can really say at this point, despite all the "expert" opinions). At least stocks aren't completely overvalued like they were in 1999. It could be that the 2000-2002 wasn't just a 3 year bear market. Maybe it was a start of something like 1966-1982, where stocks basically stay flat for a long, long time. After the huge 1982 to 1999 runup, that wouldn't be too surprising or even doomsdayish...just the normal course.
2000-2003 was set to last longer hence Iraq. Watch those Iranian speedboats cause many more incidents as time goes on.
LOL, saving the actual economy of USA requires a complete revamping of the financial & government system. Raising rates will cause a slight crash and they are not ready to do that yet. In fact, that's not the plan anyway, not IMO. Wake up already, the current result is success not failure.
I completely agreed, however, this WON'T happens any time soon. So the best to do now is raise rate to control inflation.