The Fed risks doing too much

Discussion in 'Wall St. News' started by Bogan7, Mar 18, 2008.

  1. "Real interest rates in the US are now negative, with rolling average headline inflation of 3.1 per cent and even core inflation of 2.3 per cent surpassing the nominal interest rate. Since the first Fed cut last September, the trade-weighted dollar has fallen by about 6 per cent, while a broad basket of commodities is up by around 19 per cent. The risk of igniting inflationary expectations is severe."

    Buy gold?
  2. Last time they saved the economy they set it up for a host of carpet baggers and charlatains and profiteers and promoters to pitch financial instruments that are now worth pennies on the dollar

    so here we go again
    the beat goes on
  3. mokwit


    There was a time when if snakeoil salesman came to town you just formed a possie and hunted them down. Tarring and feathering for minor swindles.

    I don't really understand why the whole world is being held to ransom by one private corporation - if it was not so accepted the Fed could be an evil world domination seeking character a la James Bond - BuckFinger or something like that.
  4. S2007S


    now that is exactly right, agree with that 100000000%.

    And they think by lowering rates its going to fix the problem, the reason why the economy grew at such a rapid pace, housing prices skyrocketed and the bull market jumped 100% in only 4-5 short years is because of these backward financial instruments that these banks created.
  5. This time it´s going to be different....:D :D :D

  7. According to Reuters: "The dollar soared to its largest single-day gain against the yen in nine years and rallied against the euro as traders responded to the less-than-expected rate cut. But U.S. Treasuries fell as investors poured into stocks.

    The Fed's action, taken on an 8-2 vote of its policy committee, was part of an intense effort by the central bank to avert a deep recession and financial market meltdown. The move took benchmark overnight rates down to 2.25 percent, the lowest since February 2005"

    Looks positive to me....I see that the market would go up, due to anticipation of further rate cuts.