You could use a course in "Reading Comprehension" . . . the press release from the FED yesterday stated that those 28 day loans will go on "as long as needed".
I didn't say it's more important. I said you can't have one without the other. You can not have job growth with contracting overall credit.
I'm sorry, but you continue to show a total lack of basic understanding of ECONOMICS and how it works . . . either that or you have a terribly poor level of reading comprehension. I have also noticed that your grammar is rather poor too as in your repeated misuse of the word "there" vs "their" and inability to correctly spell the word "sense" as in sensory. In any event: Banks make loans to companies using the companies assets as collateral. Companies then order basic materials, equipment, and hire employees in order to support production of their product. No banks = No loans to Corporate America = no purchasing of basic materials, services = no hiring. No jobs = no consumption Got that?
Youâre just making this shit up, I just bought a new home no problem. I just got an offer from Bank of America on one of my business lines of credit for zero percent till Sep 2008, with no fees. I have not seen any of my credit providers reducing my lines as a matter of fact Chase just raised one. You run around here acting line the credit markets have stopped working and the banks are not lending. That is simply not true. Maybe they have stopped lending to deadbeats but thatâs good. Thatâs why the banks are in trouble and want a bailout because they lent money to deadbeats and now they have non performing loans as far as they eye can see. Let the markets sort this out with out federal and government intervention. That way we have a solid foundation to build on for the next big run.
If what you say is true, then why have mortgage rates been rising since January 18th of this year? (from 5.49% to 6.27% on a 30-year) I thought that you and your buddy "Papa Roach" have been saying that the FED has been cutting rates, no?
Aaron, BINGO! You can thank Bernanke and the Fed that that is still the case (at least to an extent)! Without the Fed's action LIBOR would have likely shot up sky high (waaaay above Fed funds target rate) and simply sit there for months (years) signaling banks are simply hoarding cash instead of lending.
You're extrapolating your own personal experience to the economy and banking sector as a whole? Does that seem like a reasonable approach to analysis? There is a HUGE problem here. Go to the Federal Reserve Bank of St. Louis for some facts and information. Or do some reading. Sign out a book on economics from your local library. I'm not attacking you, but i don't think you appreciate the magnitude of the problem. It's a lot bigger than you having to pay an extra 50 cents for a jug of milk (which coincidentally has nothing to do with Fed policy but everything to do with imbalances in the agricultural markets).
The Fed has completely lost it. Yeah they might pull a late-inning victory, but we will have to see. I think Alan Greenspan had the right idea, but what the current Chairman is doing is gonna really hurt in the long run IMHO. What kind of kool-aid are y'all drinking. Reminds me of Democratic enthusiasm. So if we aren't coddled today we are gonna surely go into Depression? Banks are going to seize and refuse to lend because they sucked with their brilliant ideas and the world as we know it will collapse? I venture to say if they were held to the fire, there would be a way for life to continue to thrive. What a bunch of greedy, sniveling baby brats! i feel sorry for you! pS I'd like to give Ben a kick in the butt! Maybe it would stimulate his endorfins.