Recession Imminent If Fed Starts Easing

Discussion in 'Economics' started by myminitrading, Sep 17, 2007.

  1. If the fed cuts tomorrow and hints at more cuts, the economy is in trouble.

    Buyers will put off buying and wait for the lower rates, this will cause a major slow down in purchasing, but may save the ones who are deeply in debt with home equity loans, trouble is the ones in debt don't have the buying power to support the economy, they did several years ago.

    The fed should do nothing. they should let the folks who can't manage their finances properly fail, it's a hard lesson but they should learn from these mistakes and move on.

    The fed and government should not bail out reckless behavior, its sends a terrible message, and may cause more reckless behavior when our county is in a vulnerable state.
  2. empee


    we're already in a recession; and make sure t he mess is big enuff so the govt HAS to bail it out. But then again, thsi could be learned behavior from "last" time (S&L, or whatever)
  3. Let's get the facts straight

    1. We're already in a recession (don't believe the numbers the government is feeding us, it's all manipulated)
    2. Gold will goto $2000 by December
    3. Inflation is 15% annualized (see above, all manipulated)
    4. 10y interest rate will goto 9.5% by Mid 2008
    5. Oil will goto $150 by March 2008

    => As a result, I predict the SP500 will likely goto Zero by end of 2008. The sky is falling.
  4. I surely hope anyone coming to this site for the first time does not click on topics like these to get a flavor of what is here on "EliteTrader".
  5. Like your BUFU buddy stock trad3r, we all know how smart you are and how you feel. No need to grace us continuosly with your brilliance. We're not worthy.
  6. How's the 10y doing buddy? Weren't yield going to go to the moon? What was it again you were predicting in June?! :p
  7. I am a trader you moron, I took profit on that trade and have not given it a thought since. Obviously things have changed as they do from day to day in the trading world, which is what brought me to the conclusion I started with about you. You're either stock trad3rs BUFU buddy (likely) or his twin brother.
  8. basis


    You'd rather lie to them?
  9. Babak


    I think we are already in a recession... at least according to two key economic variables that have correctly presaged previous recessions.

    The bond market leads the Fed every time - unlike the myth that the Fed sets the rates. And it has been signalling a massive rate cut spree around the corner.
  10. da-net



    i agree with you on point one, disagree on point 3, it is above what we are told but i do not believe it is anywhere near what you suggest; if you can...please share any verifiable facts that you have especially on the other points. unless it is strictly speculation.


    #10     Sep 17, 2007