A few have benefited no doubt, but the majority has suffered due to rising food and energy. I guess if you have been short the banks you no doubt have benefited. The Fed and government always do stupid things during election years. What the fed and the SEC have done this year will only lead to more pain down the road. The need to let the markets work and quit micro managing the economy.
Inflation hurts everybody yes, i'm not saying its a good thing...just that the FED has to pick its battles. im confident that if the fed had chose to fight inflation by not raising rates, the stock market would be worse off even than is now, and everybody would be up in arms about how the fed didnt drop rates when they should have...its like everyone on ET is an armchair fed chairman lol. Look how much the S&P has tanked, and think what would have happened had the fad not acted.
This is PRICELESS. I'm picturing you sitting at your computer in full tinfoil hat and suit, waiting for the aliens to touch down so that they can communicate their plan to the world to you and only you. Seriously, find some sci-fi forum for nonsense like this.
This was all planned out. A reason is needed. The baby boomers will soon retire, who is going to pay? âForcingâ people to work more for less by any mean possible was the plan from the beginning. If the housing market had not been blown up to ridiculous levels it would have not âforcedâ people to undertake enough debt obligations to be trapped hard enough. The design is beautiful. Public debt is the spice, it justifies higher taxes..
look, I feel in this trap of trying to make sense by looking at some data and paying attention to what the fed was saying. I thought they were going to ease .25 when it was at 5.25, then maybe once more and that was it. they did 50 right away and started one of the most agressive easings ever, most people were blown away and had no idea what was going on. Not pimco, gross and co, he was calling for a 2 handle fed funds when it was at 4 and something. They were dead on, now gross is saying they will stand pat, you think I will disagree with the man who called the whole move? The fed never hikes with increasing unemployment, I think there is like one exception in the last decades
Because the alternative, a full blown DEPRESSION is not a very realistic alternative. Most of you "let the banks fail" proponents here on ET fail to realize the magnitude of the issues in our financial system. It's almost a waste of time to even try and explain it to you guys . . . And to this very day, none of you guys have been able to tell me where the CAPITAL FORMATION would come from if you let the entire banking sector go down the tubes . . . It certainly won't come from the American consumer, given their historically low savings rates. (FYI: the savings rate for all of 2005 was actually NEGATIVE, and this was during a year where inflation was only 3.4% ). So again, I ask you where the CAPITAL FORMATION is going to come from for capital investment, new business, trade, job growth, economic growth, etc.? Anyone care to answer this question?
Hmmm... You guys are all missing the point. Econ 340 teaches a more valuable lesson ... that Econ 201 and 101A are insufficient to formulate proper hypotheses.