Differently than who? The Fed? I am not American, so I very much enjoy watching the show that is unfolding right now. And a central bank losing control of a situation leads to all kinds of great opportunities.
What possible legitimate justification was there for the lowering of rates? The subprime mess? And if so, then what is the lesson to be learned here? Make bone-headed investment choices and the Fed will bail you out at the expense of those who are more responsible? Talk about moral hazard and the perpetuation of mindless gluttony.
totally agree...... The only reason why they lowered rates was to RAISE more liquidity, liquidity has been the problem and continues to be the problem. By lowering the rates and adding more liquidity they are adding more problems to the already overheated asset bubble.....simple as that..... Look at the financials today, even after the $41 billion dollar injection they are still falling. They are doing everything to bail out these banks. The question is why do they always let it get this far, why werent there any measures taken 2-3 years ago....everyone always knows the outcome, look back at the dot com days, isnt that a simple example. Its going to get alot worse before it gets any better.
74 votes thus far. I was hoping for at least 100. Please vote if you have not yet done so. Thank you.
1. Liquidity/Inflation is the "tide which raises all boats" and is easier to cope with until it gets explosive.... besides, it postpones the consequences. 2. Inflating is politically more palatable than ANY form or duration of contraction. Spineless liars and thieves always take the easy route.
This poll result shows a very sad level of perspicacity which explains why most ETers are either not trading or not making any real money if trading.
Then kindly explain in brief and simple terms (owing to our lack of perspicacity) what the principal function of the Federal Reserve is, and why it was justified in lowering the rates as it did.
Granted the poll results are a knee jerk reaction, the crude impulse of those, myself included, who are ignorant or poorly informed of the undoubtedly sound reasons for loosening in the face of full employment, surging prices for consumer staples, and 3 to 4 percent annual growth. Which is another way of saying Ben and Brethen are PhDs and I'm not.
This will tend to come as a shock to you Thunderdog & to ET'S large tribe of 'have-nots', but the reasons are set out succinctly & cautiously in the Fed announcement which accompanied the quarter per cent further rate reduction. An addiction to conspiracy theories or to socialist rant or to lefty liberal bleating, I know, is favored by many at ET. It is so comforting, isn't it?