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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?
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by tallrick
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?
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.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by tallrick
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.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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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?
Location: Sitting on a bar stool. Guinness in hand.
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just dumb
Quote:
Originally Posted by tallrick
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
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.
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.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by cdelena
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?
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by ColoWeb
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.
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just dumb
