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The moment the Fed tries to raise interest rates the economy goes right back into the tank. Plus, the Fed is powerless to set the price of bonds.
Ah, you DO know the Fed raises and lowers interest rates ALL THE TIME don't you?
The Fed isn't going to raise interest rates dramatically. They will raise the rates as slowly or as quickly as they deem appropriate. What? Do you think interest rates are either super low or sky high with nothing in between? LOL
If they raise rates too high and the economy falters they'll just lower them again until the find the correct balance. It's not like the Fed doesn't have experience doing that.
Regarding the price of bonds - so what? Bond prices go up or down (usually opposite the stock market) depending on a whole bunch of factors. It doesn't indicate the end of the world - in fact, the fact that bond prices are starting to weaken is a GOOD sign.
Ah, you DO know the Fed raises and lowers interest rates ALL THE TIME don't you?
The Fed is powerless to actually change the interest on TREASURIES. They can in theory indirectly do so by manipulating the Fed rate, but the two often do not correlate.
The rate is 0% and still the economy isn't showing signs of improvement. Chrysler going bankrupt is improvement? Iceland raised their central rate to 20% or so and it didn't stop the currency from being essentially worthless.
The goldilocks nonsense doesn't work with massive deficits as far as the eye can see.
The Fed is powerless to actually change the interest on TREASURIES. They can in theory indirectly do so by manipulating the Fed rate, but the two often do not correlate.
The rate is 0% and still the economy isn't showing signs of improvement. Chrysler going bankrupt is improvement? Iceland raised their central rate to 20% or so and it didn't stop the currency from being essentially worthless.
The goldilocks nonsense doesn't work with massive deficits as far as the eye can see.
Iceland's 20% created massive wealth for a while but it cause a bubble which then burst and now the whole country is broke.
I gave you a name and show a post.
If you choose to ignore it, I can't help that.
I'm not spending hours looking back through old threads to give you a complete list.
As I said, I gave you an example - and you just chose to ignore it (even after posting my quote (LOL)).
Yeah, it's pretty stupid isn't it - and yet it happens.
I'll let you draw you own conclusions as to the intelligence of those people.
Perhaps, but clearly you've beaten me to it.
As I said, I gave you an example.
If you can't comprehend that, there's nothing I can do to help you - other than suggest you take a remedial reading class.
Ken
You showed a post of someone who seems to have voiced their opinion, that they have little faith in the US government's ability to successfully run GM. This equates to the person wanting the economy to collapse for political gain?
What people? Your statements that the entire Rush Limbaugh audience and "plenty" of people on this board want the economy to collapse, for purely political reasons is completely absurd.
There are fringe loons out there, but they are fringe, and I have yet to meet one that fits your description.
You showed a post of someone who seems to have voiced their opinion, that they have little faith in the US government's ability to successfully run GM. This equates to the person wanting the economy to collapse for political gain?
Oh, I see, he was merely saying he had "Little faith in the US governments ability to successfully run GM"?
That must be why he gave the potential collapse of GM a "thumbs up" eh?
Face it, the poster was wanting GM to go belly up.
Quote:
Originally Posted by Wapasha
There are fringe loons out there, but they are fringe, and I have yet to meet one that fits your description.
They ARE fringe - and they populate this board a plenty - and I suspect you'll fit right in with them just fine since they don't seem to be able to read and comprehend either.
Oh, I see, he was merely saying he had "Little faith in the US governments ability to successfully run GM"?
That must be why he gave the potential collapse of GM a "thumbs up" eh? Face it, the poster was wanting GM to go belly up.
They ARE fringe - and they populate this board a plenty - and I suspect you'll fit right in with them just fine since they don't seem to be able to read and comprehend either.
Welcome aboard.
Ken
I can't wait for GM to go belly up! I really can't!!!!!!!!!!!!! Then we can get in front of something called a JUDGE ( I know, strange concept for the government crooks) who will decide who gets what instead of the payback supporter mode Obama's in.
John Burns Real Estate Consulting U.S. Building Market Intelligence™ April 30, 2009
Sales Headlines Are Misleading
Decision makers don't have time to study all of the data, yet they make huge decisions every day based on what they believe to be the market outlook. Smart decision makers rely on someone who is unbiased to study all of the data and provide a fair outlook.
National sales volumes have not bottomed, as reported earlier this month. New home sales are falling in all regions of the country. Existing home sales have risen sharply in the West and, while they continue to fall elsewhere, it is at a slower rate of decline in more recent months. Recent headlines based on Seasonally Adjusted (SA) data are misleading. Reporters have been trained to cover the SA numbers each month. While the SA numbers have merit, they bounce around a lot because of sample size, weather, or other issues such as whether Easter is in March or April. These issues are often addressed in the body of the article, or in the later stages of the TV report, but most people unfortunately do not pay attention to the details.
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To get a more reliable (but less newsworthy) picture of the housing market, we track a rolling 12-month total of sales. When the rolling 12-month total line flattens or begins to flatten, year-over-year sales have equaled and the appearance of a bottom is beginning to form. This data has some of the same seasonal issues, but is less prone to the wild and misleading headlines that often accompany the Seasonally Adjusted data.
While I think it would be great if the economy was recovering, as I am sure there are plenty of very important people who want to make money off any new spending that might cause. I am very reluctant to believe their is any recovery based on my knowledge of fuzzy numbers and how the governments around the world manipulate data for their benefit. Governments are notorious for using careful wording,tricky accounting and distorted data sampling as a way to suggest the economy is improving. Right now all the governments have been offering people is positive survey data, which while on an uptrend, completely ignored the negative economic data which has slipped even sharper to the downside.
First the supply data which this thread is based on, and yes would make the average armchair investor think things are rosey. U.S. Economy: Manufacturing, Confidence Increase (Update1) - Bloomberg.com
However with a big warning to those who don't want to lose money by making irresponsible investments on supply data, I offer this for consideration.
First off the 'concon' or consumer confidence report is extremely well correlated with both gasoline prices and the stock market. In this regard, saying that stocks are heading up because consumer confidence is rising is circular reasoning at its finest so it really wouldn’t be very helpful or explanatory to say that stocks went up because consumer confidence went up, because the opposite is often true. Consider this on one morning a week ago, two headlines came out on yahoo news within two hours of each other.
The two headlines were 'Dollar Pressured As Recovery Hopes Rise', and 'Dollar Gains As Recovery Hopes Rise'. So which is it? The fact is the majority of economists and political pundits play on the average Americans lack of economic knowledge to even notice these sorts of inaccuracies.
Meanwhile, if you explore the economic data first and ignore the survey data which is basically saying let's look at what 'is' and not what people would like to 'aught', we see headlines such as this. Chrysler Drags U.S. Auto Sales to 34% Drop, Trailing Estimates - Bloomberg.com
When even Toyota and Honda are now having a tough time, it’s rougher out there than it was in the fall of '08.
More important than that however is this very real economic data that has a direct effect on the average American, and is a result of continuing unemployment, as people start using up any savings they may have. http://money.cnn.com/2009/04/30/real_estate/March_Hope_Now/index.htm?postversion=2009043011
I don’t think we’ll hit bottom until the housing correction has run its full course, regardless of how many green shoots are spotted along the way. The data above may not be as bad as reported, because I don’t see that they’ve adjusted for the fact that February is a shorter month than March. Still, the number of foreclosures is heading up, not down.
Please watch this video by a correspondence of mine Dr. Chris Martenson who explains how governments over the years have manipulated economic data in order to make the negative appear positive.
This will save you money if you are the type to invest.
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