U.S. CitiesCity-Data Forum Index
Celebrating Memorial Day!
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-08-2007, 05:34 PM
 
Location: Heartland Florida
9,324 posts, read 23,234,062 times
Reputation: 4895

Advertisements

What do you think the Cartel will do December 11? Is another stupid interest rate cut in the future? What are the chances of an interest rate hike? Personally I wish they would just be dissolved, but what do you think?
Reply With Quote Quick reply to this message

 
Old 12-08-2007, 05:53 PM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 20,593,561 times
Reputation: 3587
Quote:
Originally Posted by tallrick View Post
What do you think the Cartel will do December 11? Is another stupid interest rate cut in the future? What are the chances of an interest rate hike? Personally I wish they would just be dissolved, but what do you think?
I think they will do a STUPID rate cut. The question is will it be just STUPID or REALLY STUPID- that is 25 basis points or 50. Bernanke has no sense. It looks to me like he thinks the only job of the Fed is to make Wall Street happy with rate cuts. Under Volker and Greenspan the job of the Fed was to CONTROL INFLATION and neither of them would have been STUPID enough to cut rates after a quarter of 5% GNP growth. That is why our economy has enjoyed no recessions since 1982 after Volker decided to ring inflation out of it. You might as well get ready now for a return to inflation big time. between Bernanke acting like a stupid child and Bush spending like a stupid child, the dollar is falling to crap and the first place inflation will soon show up is in imports followed quickly by everything else. My prediction is this: 2008 inflation will be 5%, 2009 will be 8%, 2010 12% at which point the Fed will decide to throw the brakes on and raise rates to the sky which will cause a NASTY recession in the economy not seen since 1982. This could be avoided by simply "tapping" the brake now or at least taking the foot off the gas! But the idiot was appointed by Bush so what do you expect?
Reply With Quote Quick reply to this message
 
Old 12-08-2007, 10:03 PM
 
Location: Heartland Florida
9,324 posts, read 23,234,062 times
Reputation: 4895
The consensus of everyone I know is a cut of 25 basis points. I am super steamed because I want to get the real estate bubble over with and am FED UP with 10% inflation.
Reply With Quote Quick reply to this message
 
Old 12-09-2007, 08:03 AM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 20,593,561 times
Reputation: 3587
Quote:
Originally Posted by tallrick View Post
The consensus of everyone I know is a cut of 25 basis points. I am super steamed because I want to get the real estate bubble over with and am FED UP with 10% inflation.
This is really a dumb move. Greenspan must be shaking his head in disbelief.
Reply With Quote Quick reply to this message
 
Old 12-09-2007, 08:05 AM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 20,593,561 times
Reputation: 3587
Not only is this going to ignite inflation again but by cutting in relatively good times, Bernanke will not have any ammo left if something goes south- such as a serious oil disruption of something else. Then what will he do- cut rates to below zero where the bank pays you to borrow money?
Reply With Quote Quick reply to this message
 
Old 12-09-2007, 08:24 AM
 
Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 5,492,904 times
Reputation: 1691
Default just dumb

Quote:
Originally Posted by tallrick View Post
The consensus of everyone I know is a cut of 25 basis points. I am super steamed because I want to get the real estate bubble over with and am FED UP with 10% inflation.
Absolutely agree! This is just a another dumb moves in a series of dumb moves. But there not much You or I can do about it. So might as well see where we can make money in the up coming economic disaster. Heck there were plenty of millionaires made during the depression.

Quote:
Originally Posted by KevK View Post
This is really a dumb move. Greenspan must be shaking his head in disbelief.
Why would Greenspan be shaking his head. My guess is that he probably would have taken us down to 1% again by now. I mean the guy took us down 3.5% for the tech bubble and that was a joke compared to this.

Changes To the Fed (Federal Reserve Board) Funds rate since 1990
Reply With Quote Quick reply to this message
 
Old 12-09-2007, 01:20 PM
 
Location: WA
5,293 posts, read 20,705,220 times
Reputation: 5622
Greenspan was one of the primary guys that got us into this with 1% rates.

Right now the credit markets are tight with panic and needed loans are not being made. A 50 point cut with a 75 point cut at the discount window is needed to help the economy rebound from the sub-prime hit.
Reply With Quote Quick reply to this message
 
Old 12-10-2007, 03:27 AM
 
Location: Colorado, Denver Metro Area
1,048 posts, read 3,922,213 times
Reputation: 396
I think they will do a 1/4% cut - sadly. I do not think they should, however.

As for Greenspan, back then it was a good idea. Now, however, this is a different situation and I think that he would not make the cut now.
Reply With Quote Quick reply to this message
 
Old 12-10-2007, 05:10 AM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 20,593,561 times
Reputation: 3587
Quote:
Originally Posted by cdelena View Post
Greenspan was one of the primary guys that got us into this with 1% rates.

Right now the credit markets are tight with panic and needed loans are not being made. A 50 point cut with a 75 point cut at the discount window is needed to help the economy rebound from the sub-prime hit.
The economy is NOT in any trouble! The economy grew at 5% GNP last quarter. Unemployment is still at historical lows and jobless claims fell again last week. Christmas spending is up 11% over last year. Why on Earth would any Fed chairman think a rate cut is warranted?
Reply With Quote Quick reply to this message
 
Old 12-10-2007, 05:11 AM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 20,593,561 times
Reputation: 3587
Quote:
Originally Posted by ColoWeb View Post
I think they will do a 1/4% cut - sadly. I do not think they should, however.

As for Greenspan, back then it was a good idea. Now, however, this is a different situation and I think that he would not make the cut now.
Greenspan had the luxury of productivity increases as a hedge against inflation.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top