March 18th, another Fed rate cut?

Discussion in 'Economics' started by CStar, Mar 7, 2008.

  1. CStar


    I'm completely convinced that the Fed meetings are held around a circular table like the one used in the TV series That 70's show... you know, the "pot circle." I mean they must be smoking something, right?

    I certainly get the concept of lower the rates when the economy is slowing but this Fed in my opinion is fueling a commodities bubble, losing the battle against coming stagflation, and now they are even hurting the European economy to some degree with the imbalance they are creating with the currency. If they keep it up, maybe gold will be based on the Euro in the future instead of the dollar. Maybe that threat would finally start them thinking about a better balancing formula.

    What the Fed should be doing is working as much as they can with government and the banking industry for intelligent refinancing to help at least the non-speculative home owners who could afford homes in the first place keep the homes they bought.

    It is nearly certain that some home owners are going to be upside-down on these newer mortgages. It is certain that homes are now and will continue to be worth less for some time. Eventually, real estate values will appreciate again as it always has in the past but for now, I believe the most important step the Fed can take is to help stabilize the housing market through loan programs and not through rate cuts. Besides, we haven't even seen the effects of the initial cuts, yet. I state quit killing the dollar and give the previous cuts the time they need to work.

    If anyone here disagrees with me on this issue, I'd love to hear your reasons and projections. I feel I'm correct about the accusations I've made in this post but differing opinions can be a great source of enlightenment at times.

  2. Can't do that. Election is too soon.
  3. cuts are destroying the consumer with inflation, no help whatsoever. ben and co gots it backards'
  4. Its a golden opportunity for an academician when they get an opportunity to play with the real thing and see how it responds to their theory.... or doesn't.

    At least BSB will know for certain if he was correct or not about his theories on the great depression. What an opportunity for him.

    For the rest of us, unfortunately, we may not get the same degree of satisfaction of being proven or disproven wrong as we sift through the remainders of what we once had.