I'm angry because most people on ET (I assume most here are not knee deep in debt, otherwise they wouldn't have the capital to trade) benefit from getting a higher rate on their savings, and with this rate cut, we are in effect, getting taxed and the borrowers are receiving a tax benefit. With more money being printed and with high inflation, savers get punished, and those heavily in debt get rewarded. In the long run, the country will have to pay a price, you can't increase debt ratios forever. The sad part is that the people who are saving will have to pay the price, and the borrowers will get off easy. For a country that should be trying to encourage more people to save and reduce their debts, the Fed's actions have reinforced the overspending behavior of the American public and encouraged risk-taking and over borrowing. With Heli at the helm, he's only about fighting deflation, and trying to prevent the next Great Depression, LOL. He's obsessed about that. He could give a rats as.s about inflation.
Whining about Bernanke on a message board won't help your personal situation, but you can always buy gold futures, short treasuries or short the USD and buy inflationary assets (stocks, real estate, invest in PE) instead of complaining. If you're really paranoid, buy physical gold and put it in a safe somewhere. It's not like you have no options.
Bernanke screwed you and you don't even know it. He just decided to give you less on your savings and give some overleveraged punk a better rate to borrow more and more money. I'm sure you feel great about it because the market went up (in the short term, I emphasize) but the euphoria ends quickly, the economy sucks right now.
Buy real estate? LOL. Great advice, right after we've had a huge bubble. And short treasuries? LOL. I don't do negative carry trades and don't want to get punished by an easy Fed that believes in lowering rates but hates raising them. Please stop spouting off ill advised braindead advice to the masses here.
He didn't say WHERE to buy real estate. You can buy properties outside of the US that have excellent growth potential.
Real estate is going to suck all around the world, not just the US. Bubble hasn't just been confined to the US, its been almost everywhere. I guess I could buy land in the Antarctica, where theres been no bubble. LOL.
The US is a bankkrupt country. If and when people devalue the dollar and expect other currencies for payment, then the USA is in trouble big time. The question is how soon that will happen. Detective, I feel the best way is to trade what you see and when the big fall comes ride it from the top. I agree with your wisdom.
Its a cheeky move by Heli Ben, basically telling foreigners to shove it and accept a lower rate for their dollar holdings and daring them to expatriate dollars. Like the daredevil bluffer who doesn't think the opponents will call. Well, you keep bluffing with garbage hands, pretty soon people will catch on and start calling your bets. LMAO.
See you're a perma bear that doesn't put his money where his mouth is. You do your bearish analysis and conclude you want to put all your money into "savings" (cash deposits or whatever) instead of capitalizing on your analysis (You said you foresee problems for US savers, maybe the US Dollar and real estate companies) .. So use this knowledge (or bias) in your favor. Place trades based upon your analysis! Your macro calls could lead to dozens of different trade ideas that will make you a lot of money if you're right. Bulls make money, bears make money but paranoid tin foil hat wearers that put their cash into an idle bank account yielding 2% real interest rarely make money.
bernanke decision penalizes people who work for their money, and benefits people who have assets. It is going to become very difficult to become rich if you aren't already for the average worker.