Fed Chairman still talking

BobSav · February 28, 2008 1:32AM

The Fed chairman is still talking in front of Congress. The more he talks the higher the metals are going.
Seems to be a relationship here...

Bob

FLBuffaloHunter · February 28, 2008 1:33AM

I think it has hit the fan as the saying goes.

ziggy29 · February 28, 2008 1:35AM

The longer the Fed tries to prevent the inevitable down cycle in the economy, the worse it will be when they can't stop it any more.

Enough, Ben. Let the market cycle get the downturn out of the way. Stop trying to bail out Wall Street and stop weakening the dollar and fueling inflation.

BobSav · February 28, 2008 1:43AM

I'm voting for Ziggy29 for the new Fed chairman.
Who will second the nomination ?

Bob

ttown · February 28, 2008 1:46AM

<< The longer the Fed tries to prevent the inevitable down cycle in the economy, the worse it will be when they can't stop it any more.

Enough, Ben. Let the market cycle get the downturn out of the way. Stop trying to bail out Wall Street and stop weakening the dollar and fueling inflation. >>

Not only Wall Steet but they are trying to bail out the banks for all the bad risk management on loans they've done in the past several years. Expect another 1/2 drop in the rate the next meeting and the futher decline of the dollar. I can see the DOW dropping below 10k this year with these tatics.

ricko · February 28, 2008 1:50AM

I do believe there will be another interest rate cut... but the Dow will not drop 10K this year... or next. The real danger is if any Democrat gets elected president... financial disaster then... Cheers, RickO

amiller · February 28, 2008 1:55AM

<< I'm voting for Ziggy29 for the new Fed chairman.
Who will second the nomination ?

Bob >>

I second. Are all these positions appointed or elected? Either way we need a change in direction for dealing with this.

TwoSides2aCoin · February 28, 2008 1:56AM

Does he collect coins ?

Gemineye · February 28, 2008 1:56AM

What's so upsetting..???...He's readjusting these rates before he rose them before...!!....Lower rates are better for loans..and the housing market.

DJCoinz · February 28, 2008 1:57AM

<< I do believe there will be another interest rate cut... but the Dow will not drop 10K this year... or next. The real danger is if any Democrat gets elected president... financial disaster then... Cheers, RickO >>

Couldn't agree with you more.

BECOKA · February 28, 2008 1:59AM

I just need whichever interest rate effects mortgages to go down a little more so I can refi out of my interest only loan.

Then we can let everything take it's course.

FLBuffaloHunter · February 28, 2008 2:00AM

Hillary will fix it in 2009!

vplite · February 28, 2008 2:00AM

<< I do believe there will be another interest rate cut... but the Dow will not drop 10K this year... or next. The real danger is if any Democrat gets elected president... financial disaster then... Cheers, RickO >>

Of course there will be further interest rate cuts. Do you believe the Democrats will manage the economy even worse than the Republicans? OMG

ttown · February 28, 2008 2:05AM

<< 

<< I do believe there will be another interest rate cut... but the Dow will not drop 10K this year... or next. The real danger is if any Democrat gets elected president... financial disaster then... Cheers, RickO >>

Of course there will be further interest rate cuts. Do you believe the Democrats will manage the economy even worse than the Republicans? OMG

>>

It's not going to matter the damage has been done. Some blame it on Bush but really this all started in the 60's with paying healthly people not to work and now after decades of both parties robbing everything from Social Security to printing large sums of money it's going to come home to roost IMO. Social programs are fine for those that have real health issues or on a temp. basis but not as a life style.

ziggy29 · February 28, 2008 2:05AM

<< What's so upsetting..???...He's readjusting these rates before he rose them before...!!....Lower rates are better for loans..and the housing market. >>

Yes, but the problem is that it's a Band-Aid. There's a lot of garbage the economy needs to get out of its system entirely. This just delays the inevitable, and the most of the garbage remains in the system to blow up again down the road.

But for every winner, there are losers. People buying food and energy (or anything imported, since we've dismantled so much domestic industry) are losers as the dollar tanks with each rate cut. Retirees living on income from money market funds and CDs are taking it in the shorts. (Someone getting $30,000 in such income a year ago are getting $20,000 now, and that's likely to go lower in the months ahead.)

For the most part, "easy money" is what got us into the mortgage mess; without it these "teaser" 3% interest-only, nothing-down ARMs (which are the nuclear fuel in the housing bomb) aren't possible, and the bubbles in housing costs caused by artificially low mortgage rates don't occur to the same extent. And yet the Fed seems willing to repeat it, even at the expense of very high inflation and a tanking dollar.
Even in the Greenspan days, the Fed had a tendency to overshoot badly on its rate moves, whether tightening or easing. The difference is that Greenspan had enough "street cred" to calm the markets. Helicopter Ben doesn't.

And the "stimulus" gimmick is also a Band-Aid which will probably help China's economy more than our own in terms of people going out and "stimulating" the economy on a bunch of cheap goods made in China. Far better to take that $150 billion, if it must be spent, and use it on rebuilding and expanding domestic infrastructure with jobs and investments that stay here instead of going to China.

TwoSides2aCoin · February 28, 2008 2:05AM

I should run for politics. My questions are just as dumb.

vplite · February 28, 2008 2:10AM

<< I should run for politics. My questions are just as dumb. >>

You are right, some of those questions have been outright stupid.

BobSav · February 28, 2008 2:13AM

ZIGGY-ZIGGY-ZIGGY-ZIGGY

ZIGGY FOR PRESIDENT !!!!!!!

Bob

harvey85422458 · February 28, 2008 2:15AM

Very interesting keep digging that hole.

Gemineye · February 28, 2008 2:21AM

Zig...

<< But for every winner, there are losers. People buying food and energy (or anything imported, since we've dismantled so much domestic industry) are losers as the dollar tanks with each rate cut. Retirees living on income from money market funds and CDs are taking it in the shorts. (Someone getting $30,000 in such income a year ago are getting $20,000 now, and that's likely to go lower in the months ahead >>

If those same people had invested in dividend paying stocks they would still be getting the same money at no loss..

ttown · February 28, 2008 2:23AM

<< Zig...

<< But for every winner, there are losers. People buying food and energy (or anything imported, since we've dismantled so much domestic industry) are losers as the dollar tanks with each rate cut. Retirees living on income from money market funds and CDs are taking it in the shorts. (Someone getting $30,000 in such income a year ago are getting $20,000 now, and that's likely to go lower in the months ahead >>

If those same people had invested in dividend paying stocks they would still be getting the same money at no loss.. >>

And worth a lot less in purchasing power........Wait until $4 a gallon gas this summer. It's held way to stong in the off season this year.

Gemineye · February 28, 2008 2:28AM

<< 

<< Zig...

<< But for every winner, there are losers. People buying food and energy (or anything imported, since we've dismantled so much domestic industry) are losers as the dollar tanks with each rate cut. Retirees living on income from money market funds and CDs are taking it in the shorts. (Someone getting $30,000 in such income a year ago are getting $20,000 now, and that's likely to go lower in the months ahead >>

If those same people had invested in dividend paying stocks they would still be getting the same money at no loss.. >>

And worth a lot less in purchasing power........Wait until $4 a gallon gas this summer. It's held way to stong in the off season this year. >>

I don't see how you can make the comparison between the two... If the price of gas is going to go up no matter what...?!?!!?

ziggy29 · February 28, 2008 2:30AM

<< I don't see how you can make the comparison between the two... If the price of gas is going to go up no matter what...?!?!!? >>

Because a significant portion of the rising cost of crude oil and gas is due to the declining dollar. When denominated in other currencies, the runup in prices is not nearly as steep as it is in terms of dollars. And the more you cut, the more you hurt the dollar, and the more oil and gold spike.

Gemineye · February 28, 2008 2:42AM

I think it's the opposite way...the declining dollar is due to the rising price of crude and natural gas...and gold and other metals are just temp parking place for speculators who are ruining the actual markets.....!!!

ziggy29 · February 28, 2008 2:43AM

<< I think it's the opposite way...the declining dollar is due to the rising price of crude and natural gas... >>

Then why is the Euro at record highs? Rising crude prices are hitting there, too -- just not as much as it's hitting anyone paying for oil in dollars. In fact, it should be WORSE in Europe because they produce almost no oil in the Eurozone.

ttown · February 28, 2008 2:50AM

Just think about it or ask anyone like my dad that lives off his divends from stocks. He gets the same money but when he buys food, gas, utilities or anything else it cost WAY more. Those fixed income people are really hurting and with the rigged CPI they don't get a raise in their Social Security benfits. It's very bad for them as well as anyone working the lower the rates go the less buying power the dollar will have (it drops) because of all the money they are printing.

Gemineye · February 28, 2008 2:53AM

They get their oil and gas from the new Russian states and new pipelines into those regions.They are not as backward as we think.China is also developing their idustrial base.They have been for many years and have been improving it and I guess most think that mostly inferior products come frome there.

Gemineye · February 28, 2008 2:55AM

<< Those fixed income people are really hurting and with the rigged CPI they don't get a raise in their Social Security benfits. >>

It is a modest increase......!!!

cladking · February 28, 2008 3:12AM

It's not a simple matter of cutting off liquidity and allowing things to return to normal. If
it were the market would be telling us that. There would be a strenghtening stock market
and stabilizing conditions except for inflation and commodities. If liquidity were to dry up
now the collapse would resume. ... Possibly apace and unstoppable.

Until conditions do stabilize this will continue. My guess is that the dollar won't quite get
under 70 before it holds. This is only phase II, there's another coming next year or the year
after.

ttown · February 28, 2008 3:17AM

<< 

<< Those fixed income people are really hurting and with the rigged CPI they don't get a raise in their Social Security benfits. >>

It is a modest increase......!!! >>

Nope Medicare took care of that real fast.

Gemineye · February 28, 2008 4:02AM

Here's a chart I found on Russia's or the USSR's oil production in Million barrels of oil....

Fed Chairman still talking

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