Just wait for them prices to keep rising, won't be long. A rate cut with the market just 5% off it's all time high is pandering.
since the fed cut discount rate in august, the dollar has fallen 6%. if u didn't make 6% on ur entire net worth, u lost.
dollar is down 21% in past 2 years. what banks do is they take ur money market savings deposits, convert into foreign currencies @6-8% interest, so made 30% returns last 2 years off YOUR money and then in return they throw you 4% "crumbs" return on ur depreciated currency that's lost 1/5th of value. That's called theft. ps. don't get me wrong, currency rates should fluctuate, but it is unhealthy and EXTREMELY abormal to see your own dropping 50% within a decade.
Even if get into recession it's heathy. You must not prevent recession. You just need to go through it. It's just like the winter for the nature. You can't and must not prevent winter From the other side inflation is not healthy. You must prevent inflation. If speaking about the Fed their job is not monitor home sales or other reports - they must prevent inflation and ensure full employment. Instead of that they crash dollar and bail out their friends at Goldman They are criminals
Dollar is still falling, oil, gold and the rest of the commodities are enjoying a nice steady rise. No need to worry about inflation.
THE FED'S JOB IS NOT TO PROTECT MARKETS. IT IS TO PROTECT THE VALUE OF OUR CURRENCY. THERE SHOULDN'T BE ANY QUESTION OF RISKING RECESSION TO PROTECT THE DOLLAR.
Average American who buys a $30k car. Do you know what he actually ends up paying? More like 60k. Total payments on a $500k home is $1.5 million. If you bot a $100 vacuum cleaner at target and paid the minimum for a year.. guess what, u paid $120. Fed's inflation metrics are all mucked up. Retail price does not capture true cost to consumer. They don't account for interest payments over time on financed purchase, which is like 99% of all purchases in America. Someone's 25k credit card bill used to buy furniture at 19.99% APR, paid off years later, he actually spent like $62,000. They keep retail prices "down", by assumption that most will be on credit purchases. Without which spending would PLUMMET. Someone else is then making off the REAL price of what u purchase. Margins are really built on interest income. Most major retailers now offer their own financing. More and more they rely on interest to pump margins and growth. Fed's metrics on inflation via retail price is completely and utterly flawed. Deception, temptation and theft.
Plain and simple truth is, the Fed is in a box now. Will they cut again? Of course, and they will destroy the dollar. Just look at the CRB since the cut. It had to happen sooner or later. Our only hope is that falling home prices overwhelm the markets and we start to freefall. The deflation might happen fast and they might not be able to inflate fast enough. Long shot at best. Keith
"Actually, I trust the yield curve and the bond market a lot more than the Fed and it appears to be generally optimistic" um... commercial paper is where you want to assess risk valuation. that is where the market is truly pricing credit risk, etc. and it aint pretty. commercial paper is UGLY
yes, job well done - CRUDE at record highs, DOLLAR at all time lows, GOLD at all time highs, virtually most agricultural raw material that goes into making your food is at multi-decade if not all time highs. so the stock market went up a little - gvmt, hedgies and large brokers have the FED but the sack. WHO did this fed cut help OTHER than those mentioned? Did it help those who have mortgage problems or home builders (which is NOT the fed's job to bail out)!?? bunch of clowns ...