HAHAHAHAHAHAHHAHAHAHA! Latest on CNBC.. When there is good news, I never see the RATE HIKE banner... A rate cut would be terrible. It means that the economy sucks. They can't cut rates anyways - the Dollar will go to 70, crude will go to 100, and inflation will spiral out of control... There's no inflation? HAAHAHHAHAHAH! Ex food and energy - I mean who drives or eats these days anyways? Stagflation!!!
I knew it, hey I wonder what happened to Osama Bin Lauden, have not heard about him for years, well just wait if the market ever does fall you can bet you will here " Bin Lauded Has Been Captured" over and over. Always understand, the media and wall street jobs is to hype the good news. Has been for 200 years.
What do you think a rate cut would anyway? Fuel another housing boom? LOLOLOL!!!!!!!! Lending standards are tightening and lower rates are not gonna help that out. Plus as stated above, lowering rates would signal the fed is scared shitless of the economy.
The housing mess takes almost a 1% bite out of GDP?!?!? Noooooo, say it isnt so! I dont believe! I didnt see that coming from 2 feet away Now they are screwed. Cut rates now and inflation accelerates. The printing presses go wild. Capital flow into the US gets cut off. Seniors on fixed incomes get killed. The AARP goes nuts and raids the white house with an army of wheelchair bound old farts. All our money is worth less. Raise rates, and consumer spending comes to a screeeeeetching halt. 100% of peoples pay goes to the ARM based mortgage Mortgages get pulled out of everyones range because of the current high prices. New home sales go to zero. Construction comes to a screeeaaatching halt. Unemployment in construction and real estate soars. Pick your poison. I say let the real estate market fall. Its paper wealth. The next generation just got screwed and a very small percentage will ever own a home now in hot areas, unless you let this unravel as it should.
If you take the Fed at its word (yeah I know) the they are unlikely to cut rates as the number they use for imnflation just poped from 1.8 to 2.2. Their goal is to keep inflation under 2% by this measure so if anything a rate hike is the more likely scenario.
The fed is in bed with wall street, they all work togather,. wall street knows that pussy Bernake is not going to raise rates why do you thik the stock market goes up every day. Mark my words, we will see more weak data to keep the fed on the sidelines. The stock market will keep going higher because they jnow the fed is puss.
I bet the next "big crisis" RAISES rates. It will be when foreign central banks will not roll Treasury bonds. Fed then must chose between: (1) higher rates to persuade them to roll their bonds OR (2) US printing dollars to pay them. Given Bernake's historical POV, I bet on (1). That "won't roll" crisis and choice (1) will make the domestic crisis of US economy I think you are assuming will lower rates.