Discussion in 'Economics' started by dhpar, Aug 29, 2007.
you are correct, but the Dollar is on the 30th floor and forex traders are yelling "jump"
I voted "no change".
In fact, I look at the stock market and everything looks pretty damn healthy, we can't be making all time highs every damn month you know.
I am completely on the same page. They shold not cut - but they will. I listened to all the speeches yesterday and especially Mishkin's was exceptionally soft.
the dollar is getting pounded to dust as the band plays on.....
oil to 100
gold to a 1000
wheat to 10
very interesting speech from Ben today...
Yes it was. I sure as hell don't know if there's going to be a cut or not. I know what the futures say, but that's the market speaking. Doesn't mean it's what will happen.
I don't think the Fed should cut, but what I think is irrelevant. It sure sounded, however, that the Fed speakers this week, and Bernanke today also don't think they should cut. They keep saying the Fed rate is not designed to correct market imbalances.
What it sounds like to me is they're moving away from the "Greenspan Put". And the market is used to the put.
Therein is where I think the divergence is.
There is no inflation the government says so, listen to your government and do as your told. Bernake all ready said high oil has not caused recession, lets try $100.00 oil and see what happens, screw the consumer.
Instead of just spewing sarcastic hate-filled rabble, offer an intelligent opinion on what you think is going to happen. I, for one, would be interested in hearing what you think if you could just turn off the same-old.
i don't know - i think they will cut based on the speeches this week. in fact the speech today did not seem to suggest much concern about weak dollar - quite the contrary. Mishkin speech was almost like "if we don't cut by 50 we all die", Yellen was typical - she is dove and would not do the last few hikes if she did not have to go with the flow, Fisher may dissent etc.
of course I am a firm believer that they should not cut. My reasons are in many threads from the past week - I need to go - siren tells me that oil is 78+ typical
Buy cutting they keep the buyers on the side lines, buyers will wait for more cuts before buying a house or any large ticket item.
So it just creates a slower economy, because everyone puts off that big purchase.
All the fed is doing is helping investment banks with lower rates, banks won't pass that rate cut on to the consumer, they will keep it for themselves.
Now just think of how much big ticket buying would occur if the fed did not cut, and signaled a wait and see approach.
Buyers would go ahead and commit knowing that rates may not go lower.
Its' just common since something you won't here on CNBC.
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