I thought I would hear comments about this today from the talking heads, but I didnât. They just keeping saying how it is good news, and no one mentioned that this could be a sign that the Fed is truly afraid.
Lowering rates and adding liquidity to the credit markets is pretty basic stuff. They have been pretty straight forward in telling the market place that they are going to be buying mortgages and asset-backed securities. In your opinion, how does this seek to "confuse"?
Free market? You surely have a totally distorted view of what constitutes a free market. Certainly, not one with a banch of idiots trying to cause hyperinflation. Next, I want to see the US economy real strong, not in steroids.
The tarp did not work. People kept talking about inflation and how much money was spent. We were still in Deflation. The banks did not lend out the money, it never reached the system to stop the deflation spiral. The Fed has just bypassed the banks. Bernake will not have another Depression, yes we now will have the inflation people have been worried about. But should that have been your primary concern? And the Fed can remove this money. More concern should be spent politically on our growing budget deficits than Fed actions.
Prices for real estate is just prices of 2000 that isnt' inflation. prices for real estate is still higher than it was in 1995 or 1990 price of oil same as it was in 2005 but still higher than 1995. there is no deflation. normal inflation don't rise 100% in year like oil. going from $75-$150 in less than a year.
Wrong. You can't assume the TARP didn't work. The markets have been flat since October 10th when the TARP was passed. There is hardly a deflationary spiral. The core CPI was unchanged.
Excuse me, but . . . "Housing starts fell to their worst levels ever ( the record keeping only goes back to 1959 ) and the CPI was -1.7% for November, which brought the annual rate of growth down to match the December 1986 and June 2002 lows of 1.1% from 3.7%" If the Economy wasn't DEFLATING as hard as you say it is,why did the FED just lower rates to ZERO?