DEBT and INFLATION are GOOD FOR YOU!! Why else would the Fed pursue such policies if those were not good for you??? Why would credit card companies encourage debt by requiring so little minimum to be paid on your debt. Thanks to our selected political officials, we can be in more debt than ever in history! We are the most prosperous than ever in HISTORY because of our massive debt! Of course, being in debt means the prosperity isn't really YOURS - it belongs to the banks you own that money to - BUT you can SEEM to be prosperous! Stop being greedy - isn't that ENOUGH?!!!
The borrower is servant to the lender. Debt and inflation is good if your wages can keep up and service the debt. I Are they keeping up? Not so for the average american.
A rate cut is inherently inflationary, thats econ 101. Hard to take this thread seriously when no one comments on that.
On a day like today commodities soaring, dollar sinking lower. Earnings have been good, it makes no zero since to cut rates. Their is just no excuse. Markets look sound, fed should quit micro managing the economy.
You are contradicting yourself. The Fed is exactly NOT micro managing the economy and BECAUSE OF THAT does not care where the market is TODAY, or TOMORROW, or was YESTERDAY. Fact is, credit is still extremely tight, so tight that most banks cannot sell their structured products anymore with more papers coming in every day. Firms need to finance themselves short-term but the banks cannot package those loans/commercial papers as there are no takers. Makes any sense???
You dont get the point. I believe Fed cuts by 25bp. But its not BECAUSE thats what WS wants, its because of the credit tightness. Lets be straight with what is cause and effect here. It makes a huge difference BECAUSE I believe that we are before a larger sell off in global equity markets. Much more credit issues will surface and there is nothing the Fed can do about although they try to. If the Fed cut was merily because investors are asking for it then I would be long equity right now. I am happy to talk again with you in a few weeks ;-)