Clueless Bernanke Blows It Again

Discussion in 'Economics' started by AAAintheBeltway, Dec 11, 2007.

  1. Used to think that way but I am starting to think differently.

    I think the goal is to peg EUR/USD between 1.40-1.50. Seems to be a target, not sure why. Slower easing keeps the USD from appreciating, which might be what is desired to be prevented.

    Stable FX rate = dollar peg (or band) which then allows everything else to adjust and things to work themselves out.

    Not sure I believe this yet either but trying to understand recent confusing moves.

    oh - hey Pabst - you have been reading Russell Napier's book again too? That was my toilet reading this morning.
    #41     Dec 11, 2007
  2. great question- right, it seems many users of credit are maxed out beyond their perceived solvency

    giving banks privileged access to credit seems like another unsustainable attribute of our system.. not to mention fairness across participants in the marketplace
    #42     Dec 11, 2007
  3. cant see the view that this isnt a credit crisis....

    not even the banks are trusting each other... spreads blew out today

    Fico's above 800 and the local banker wants 9.25% w/ 30% down for vacant land, not a house...
    #43     Dec 11, 2007
  4. not sure if this helps but black markets for dollar conversion are springing up all over the middle east w/ dollar offers on the street 7-10% below the official Saudi peg of 3.75 per......

    and other pegs around the Persian Gulf are far below the bank rates...

    F the Euro... Oil is the new reserve in town...
    #44     Dec 11, 2007
  5. MKTrader


    I thought Friedman believed a basic algorithm could/should run Fed policy? I don't remember what it was, but I remember reading that.

    For the record, both Bernanke and Greenspan have said (or at least implied) that they could've prevented the Great Depression. I guess they'd try to inflate their way out...

    #45     Dec 11, 2007
  6. Anybody read or is anybody going to read 'The New Monetarism' by David Roche?

    It may answer all of your questions at once

    #46     Dec 12, 2007
  7. Depending on how you see it, Bernanke is really a short seller's wet dream coming true.
    #47     Dec 12, 2007
  8. You nailed it. A couple years ago, when Bernanke was raising rates, he was a moron. Now he's dropping rates, he's still a moron. You just can't make everyone happy.
    #48     Dec 12, 2007
  9. To properly evaluate this situation, you must also know the total number of properties in your zip. My guess is that 1200 is less then 2 % .
    According to Fisher Investments total subprime loans default potential is less then 1% nationally.
    #49     Dec 12, 2007
  10. Daal


    according to fisher investments homebuilders were a excelent buy in late 06
    #50     Dec 12, 2007