The fed has shunned its responsibility to set interest rates properly for many years now, starting with Greenspan with Clinton and Bush support. Now those rates will be set externally. It is good for the country and good for the world economy. Standing on the accelerator for years on end never made any sense. The failure of the fed to raise rates during the insane housing price runup in 2004 is back to haunt us. Moody's is going to provide the necessary correction to those rates.
I agree. Even though the seeds were set earlier, the decision to create another asset bubble on the back of commercial and residential real estate set the stage for this madness. Notice how each bubble and bust seem to move along in shorter, more extreme cycles with ever more "fuel" required to get the intended effect.
==================== Re; Title of this News=Panic Pattern [downtrend ] of 1907 Fitch ratings [Mr Moodys Co also]recently rebuked the huge debt % of USA; franky, a debt downgrade seems very , very likely. FAA has already lost huge[many millions] of tax revenue, NOW . Gov greed; trying to spend/ take/tax the last quarter out of business trends=backfired Panic [downtrend] of 1907 was caused by; 1] raising interest rates 2] great gold production 3] Roosevelt regulations .[Similiar to Smoot Hawley taxes helped cause 1929 downtrend/crash. 4] SOCIALIST SENTIMENT [Similiar to Smoot Hawley taxes helped cause 1929 downtrend/crash ] 5.666] Attacks on wealth 6.666] Anti-railroad agitation 7] San Francisco e-quake [Similiar , but perhaps less of a cause , than dust bowl/drought of 1930. Source; Wall Street Wisdom ,by Mr Samson Coslow. Love that Bible name. None of this is a prediction, its simply a pattern
Pretty good prognostication. I thought of this thread when I came across the following, from May: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=auyuQlA1lRV8
Anybody know of a time this has happened before? Something like a historical time when an economy saw bubble after bubble in quicker and quicker succession?