50BP is an admission of disaster. 25BP would have appeased nearly all constituents and by actually cutting, Bernanke could have avoided being branded as a monster who threw childen out onto the street. 50BP tells me it is as bad as everybody thinks it is and FAR worse than the gummint and its mouthpieces has been saying it is.
Says you. Obviously housing is in the tank. Subprime loans are in the tank. The question becomes whether this affects other things. Ya think maybe furniture sales might slow as home sales slow? Autos in the tank. The dollar is in the tank too. But that seems to be the only thing you're concerned about. And frankly, the Fed's job is to lean against the wind on inflation, or on potential recession. The Fed's job description says nothing about supporting the dollar. OldTrader
it seems like it was just a path of least resistance for bernanke. he satisfied the political and financial industry hands that feed him, he got to exercise some jutzpah with his first cut which was a deviation from the academic typecast and an 'in your face' to gspan... he can't be faulted by the general debt mired public for not trying... boomers get at least a temporary reprieve from housing price concerns, the federal govt can persist at breaking precedents in printing and spending, republicans are safe through the election and it's a hedge against a democratic victory, etc it's just a bandaid on a 30 year old structural problem. no politician or appointee is going to administer the bitter pill... the dollar will simply have to collapse before we can achieve truly sustainable monetary and fiscal policies in typical bush era fashion, it will be someone else's problem. as much as i respect his credentials, bernanke seems to be basically one more shill in a long legacy of unsustainable US economic policy makers, but at least he's here until 2010, so the potential exists for (some) accountability if you're leveraged, sit back and enjoy the helicopter money basically. when the boomers all start tapping their fixed incomes we'll probably start to see some political pressure for realistic rates
no. but it's hard not to be. Difference between 2001 and now. That's the dollar right there. Dont you guys get it?! Someone tell me why this is a good thing. Remember 2000 everyone? I sure do. Things were great. Now you see why. The strong dollar helped us all. This time things are different. We're going to depress the dollar into a situation that's not revivable and we're going to pay the fucking price. How come no one understands this?! Someone with the balls explain this situation on a positive note. I'd LOVE to see how you do it. http://futures.tradingcharts.com/chart/US/M
That is sooooo wrong. The Fed's job is to "CREATE inflation while hoodwinking the public into believing the Fed fights inflation". The Fed will eventually inflate us into oblivion and bankrupt us all.
Wow...i didn't expect the markets to figure it out today. Tomorrow will be red.... Good fucking job Bernake you piece of shit.