It is the only thing the fed can do but it is also inflationary.
and there goes my money....
I'm sure the "down with America" crowd are referring to the US foreign policy and not the country's economy.ATG wrote:
I didn't point it out in my OP but a freefall for the U.S. is a freefall for billions of other people.
Which is something the " down with America " crowd never thinks about.
ƒ³
Personally I think fail. Just putting off the inevitable. NOW is the time to stop pretending things are okay and take the hit like men. This just gives bad debt - the problem - a stay of execution.
Last edited by CameronPoe (2008-01-22 09:30:38)
D: but trueCameronPoe wrote:
Personally I think fail. Just putting off the inevitable. NOW is the time to stop pretending things are okay and take the hit like men. This just gives bad debt - the problem - a stay of execution.
and amongst the bourgeoisie it also serves the purpose of establishing a positive connotation for the fed and their efforts to help the common man. this will be very important to them during the inevitable crash when they are so innocently repossessing the world.
Last edited by Marinejuana (2008-01-22 09:40:27)
Late.
Xbone Stormsurgezz
Unnecessary and most likely detrimental.Kmarion wrote:
Late.
Godzilla ?Im_Dooomed wrote:
What scared the Asian market??
Looks good for me as I go to purchase a house in a few months...
“Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”
― Albert Einstein
Doing the popular thing is not always right. Doing the right thing is not always popular
― Albert Einstein
Doing the popular thing is not always right. Doing the right thing is not always popular
I'd hold off just a little longer than that.FEOS wrote:
Looks good for me as I go to purchase a house in a few months...
Really?Phrozenbot wrote:
Unnecessary and most likely detrimental.Kmarion wrote:
Late.
Xbone Stormsurgezz
Yeah, they're just trying to delay the inevitable and, as CPoe said above, it'd be better to take the consequences now rather than let them inflame and become a far greater problem in the future. A bad time is coming - that's inevitable - and this isn't going to be some 'wonder cure' for that - nothing will.Kmarion wrote:
Really?Phrozenbot wrote:
Unnecessary and most likely detrimental.Kmarion wrote:
Late.
A lot of our problems are from inflation, and lowering the discount rate is pretty inflationary. At best it will just stall the problem for a bit, which always makes it worse.Kmarion wrote:
Really?Phrozenbot wrote:
Unnecessary and most likely detrimental.Kmarion wrote:
Late.
Lowering the interest rate does not put off the inevitable.TheDarkRaven wrote:
Yeah, they're just trying to delay the inevitable and, as CPoe said above, it'd be better to take the consequences now rather than let them inflame and become a far greater problem in the future. A bad time is coming - that's inevitable - and this isn't going to be some 'wonder cure' for that - nothing will.Kmarion wrote:
Really?Phrozenbot wrote:
Unnecessary and most likely detrimental.
Xbone Stormsurgezz
A crash would be far preferable to a long drawn out death rattle. In a crash people dust themselves off and start afresh. In a long drawn out death rattle, as witnessed in Japan which experienced over a decade of contraction (negative inflation), you prolong the agony and produce an economy short on hope and attractiveness in terms of investment.
I believe this move is the type of thing that death rattles are made of.
I believe this move is the type of thing that death rattles are made of.
A sudden correction in the market is much more painful.CameronPoe wrote:
A crash would be far preferable to a long drawn out death rattle. In a crash people dust themselves off and start afresh. In a long drawn out death rattle, as witnessed in Japan which experienced over a decade of contraction (negative inflation), you prolong the agony and produce an economy short on hope and attractiveness in terms of investment.
I believe this move is the type of thing that death rattles are made of.
So just let all the loans completely fall through, and thus fucking the good paying consumers even more? Are we even talking about the same thing? Your logic escapes me on this one.
Xbone Stormsurgezz
Are you talking about the sub-prime loans?Kmarion wrote:
So just let all the loans completely fall through, and thus fucking the good paying consumers even more? Are we even talking about the same thing? Your logic escapes me on this one.
You think liquidity will help insolvency? This approach just leads to an increase in inflation, something that also screws over the average consumer.Kmarion wrote:
So just let all the loans completely fall through, and thus fucking the good paying consumers even more? Are we even talking about the same thing? Your logic escapes me on this one.
I'm talking about the fed rate cut which effects all loans. What happened to the socialist doctrine of helping thy fellow man?CameronPoe wrote:
Are you talking about the sub-prime loans?Kmarion wrote:
So just let all the loans completely fall through, and thus fucking the good paying consumers even more? Are we even talking about the same thing? Your logic escapes me on this one.
There is no such thing as starting from scratch. This is where you lost me.
There are lots of different things going on right now. The answers need to be more thought out than just letting defaults happen. I do however agree that we need a dramatic change in our monetary system and the way our government functions on credit.
Xbone Stormsurgezz
Well that is something we agree on. So does the BIS.
Liquidity? If you want inflation let all those loans completely fall through and see what happens. Your ideas are overly simplistic.Phrozenbot wrote:
You think liquidity will help insolvency? This approach just leads to an increase in inflation, something that also screws over the average consumer.Kmarion wrote:
So just let all the loans completely fall through, and thus fucking the good paying consumers even more? Are we even talking about the same thing? Your logic escapes me on this one.
Xbone Stormsurgezz
I'm also a realist and a believer in the free market (with certain stipulations). Market correction is required and it is required NOW. Rates cuts will drive inflation and will also allow those just treading water with their mortgage repayments to ride things out for a while when the truth of the matter is that they have spent more on their house than they can earn. When rates inevitably go back up thousands of repossessions that should be taking place now will take then take place, leading to another cycle of extreme turbulence on the stock markets. Nobody has any confidence in stocks right now - there needs to be no intervention and the stocks have to correct themselves unmolested so that confidence can return in a natural manner. This move is like putting a sticky plaster on a severed leg.Kmarion wrote:
I'm talking about the fed rate cut which effects all loans. What happened to the socialist doctrine of helping thy fellow man?
Yes there is. People get their homes repossessed all the time. People declare bankruptcy all the time. They pick themselves back up and get on with it and eventually start making decent money again and eventually purchase another home. The problem in America is that your welfare system is a little more 'mercenary' and is not designed to cope with situations where the total number of jobseekers exceeds the total number of jobs.Kmarion wrote:
There is no such thing as starting from scratch. This is where you lost me.
People can't trust the market because of lending institutions long-hidden irresponsibility. Adding solvency to the market won't improve trust or confidence, as confirmed by the fact that despite a whopping 0.75% cut in interest rates the DOW Jones still finished over 1% DOWN!Kmarion wrote:
There are lots of different things going on right now. The answers need to be more thought out than just letting defaults happen. I do however agree that we need a dramatic change in our monetary system and the way our government functions on credit.
Last edited by CameronPoe (2008-01-22 15:00:49)
Yea, lowering the discount rate means the fed will print more money so banks can borrow more. Debasing the dollar.Kmarion wrote:
Liquidity? If you want inflation let all those loans completely fall through and see what happens. Your ideas are overly simplistic.Phrozenbot wrote:
You think liquidity will help insolvency? This approach just leads to an increase in inflation, something that also screws over the average consumer.Kmarion wrote:
So just let all the loans completely fall through, and thus fucking the good paying consumers even more? Are we even talking about the same thing? Your logic escapes me on this one.
So debtor bails out debtor. Makes a lot of sense. But I understand it is not limited to just loans. There is also insurance on those loans and derivatives. Printing money out of thin air doesn't pay for debt that can't be payed back.
There is also another bubble supposedly ready to burst, and that is commodities. Sorry but there isn't anything the fed can do. We are just going to have to endure this.