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  • The US Fed is a ______ (fill in the blank)

    I'm honestly surprised this hasn't been posted. Our o so smart Fed has released 200 billion dollars into our economy. First I must say he is a moron, i have never been in support of this position as this is not an accountable one. He can pretty much do as he deems right and see what happens by it.

    We are trying to fight inflation so he dump more cash into the economy to help the housing market. Which I dont understand either, but thats another post. The reason crude oil is so high is because its traded on the dollar, so as the dollar goes down the cost of gas goes up. If it would be possible to trade it on the Euro we might not be in this situation.

    Instead of raising interest rates to fight inflation and get this economy going again, he keeps dropping them and hopping it will fix itself. Granted i took econ 245 in college, and im no "economist", but come on this really doesn't make any sense.

    Am i the only one who thinks he is a flipping moron?
    that sounds like a good idea trooper.
    -Vulcan

  • #2
    Re: The US Fed is a ______ (fill in the blank)

    Is that the Sole reason why he is releasing 200 Billion Dollars, to fight Inflation?

    Comment


    • #3
      Re: The US Fed is a ______ (fill in the blank)

      Its to help with failing housing market and all those people who signed adjustable interest rate mortgages. Which had they thought about 6 years ahead we would not be in this problem.
      that sounds like a good idea trooper.
      -Vulcan

      Comment


      • #4
        Re: The US Fed is a ______ (fill in the blank)

        As I understand it banks can trade in (or use as collateral) their bad mortgage loans to get some of that money. They hope it will loosen them up and get them loaning money again.

        Some economists and wall street types seem to like it.

        I have no idea myself. Seems reckless and I think most economists are selfish idiots (no offense to any economists in the audience.)
        Iím not racists, I have republican friends. Radio show host.
        - "The essence of tyranny is the denial of complexity". -Jacob Burkhardt
        - "A foolish consistency is the hobgoblin of little minds" - Emerson
        - "People should not be afraid of it's government, government should be afraid of it's People." - Line from V for Vendetta
        - If software were as unreliable as economic theory, there wouldn't be a plane made of anything other than paper that could get off the ground. Jim Fawcette
        - "Let me now state what seems to me the decisive objection to any conservatism which deserves to be called such. It is that by its very nature it cannot offer an alternative to the direction in which we are moving." -Friedrich Hayek
        - "Don't waist your time on me your already the voice inside my head." Blink 182 to my wife

        Comment


        • #5
          Re: The US Fed is a ______ (fill in the blank)

          I believe that the money is being released to help bring some liquidity back to the credit markets. This release of money should increase inflation, not decrease it. Additionally, the housing market should be aided only insofar as a functioning credit system makes it easier for new buyers to obtain loans; the people behind on their payments will see little help from this move - from what I understand.

          The Feds' move here is, from what I understand, a short term move only. It should have little effect on the banks' long term prospects, as they will have to pay back their loans within 36 days (iirc). The purpose is to get the credit market moving again, to help them get over the hump so to speak. The Fed doesn't want to see any sizeable financial institutions go bust.
          A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

          "$250,000 a year won't get me to Central Park West."

          Comment


          • #6
            Re: The US Fed is a ______ (fill in the blank)

            Descriptions and predictions from Felix Salmon and The Economist.

            And FWIW, forecasters at UCLA do not expect a severe economic downturn.

            "We are holding firm: no recession this time," UCLA Anderson Forecast Director Edward Leamer said in a report being released today.

            Industrial production growth remains strong, the quarterly report notes, and consumer spending on big-ticket items such as refrigerators is expected to keep climbing -- albeit by just 0.3% this year, from 5% at the end of 2007.

            Housing remains the big drag on the economy, UCLA analysts say. But they say the rising tide of foreclosures is related more to falling prices and escalating interest rates than to job losses, which triggered previous spikes in foreclosures.

            People "are walking away from their homes in droves not because they lost their jobs but because home prices are falling," Leamer said."
            A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

            "$250,000 a year won't get me to Central Park West."

            Comment


            • #7
              Re: The US Fed is a ______ (fill in the blank)

              Maybe the fed is crazy...like a fox. I heard a report this morning on the way to work of the record high exports, of foreign companies moving production to the US, and of certain big companies like Catapiller doing well.
              A weak dollar should help our trade imbalance. It makes our exports cheaper to the rest of the world, and imports more expensive to those in the US. This should encourage shoppers to buy US made/services, boosting our job market.
              As it is expensive to import, foreign companies move more production US stateside. A number of companies already here are expanding, and some smaller ones have opened new plants/offices. The NPR report I heard this morning was talking about a specific example of that, a high end german electronics maker. According to them they tried to keep all dollars in the US because they are so devalued elsewhere right now.
              Companies like Catapiller see their big cost equipment become more affordable for other countries. This drives sales, the manufacturing jobs here, US export numbers.
              So maybe it's all part of a big long term plan. Devalue the dollar to make the US stronger in the long run. Maybe the time is ripe to try to win back this position? Isn't the Chinese labor market becoming more expensive, the quality control being questioned, and tales of loose intelectual property rights there giving companies pause about sending proprietary designs there to be copied...ahem, I mean manufactured? It's a huge long term move! It's brilliant!







              or... the fed is selling out our long term for short term gains... and is out of it's collective flipping mind....

              Comment


              • #8
                Re: The US Fed is a ______ (fill in the blank)

                Originally posted by Addict View Post
                It's a huge long term move! It's brilliant!

                ...

                or... the fed is selling out our long term for short term gains... and is out of it's collective flipping mind....
                Both seem equally likely to me. ;)

                Comment


                • #9
                  Re: The US Fed is a ______ (fill in the blank)

                  The Fed knows what's best for you. Employees of the government are never selfish and always have your best interests at heart. Move along.
                  Dude, seriously, WHAT handkerchief?

                  snooggums' density principal: "The more dense a population, the more dense a population."

                  Iliana: "You're a great friend but if we're ever chased by zombies I'm tripping you."

                  Comment


                  • #10
                    Re: The US Fed is a ______ (fill in the blank)

                    Originally posted by ScratchMonkey View Post
                    The Fed knows what's best for you. Employees of the government are never selfish and always have your best interests at heart. Move along.
                    And the mercury in your vaccine is to make you grow big and strong while it fights the big bad pathogen.

                    $700 per man woman and child.

                    Anyone feel robbed yet? Robbed of a future?

                    $200 BILLION ($658.71 FOR EVERY PERSON LIVING IN USA) ADDS FIRE TO THE MELT DOWN

                    http://counterpunch.org/whitney03132008.html

                    Keep breathing in your nano-fibers and drinking in your EM soup.

                    Comment


                    • #11
                      Re: The US Fed is a ______ (fill in the blank)

                      Cheery word from the NBER:

                      "The situation is very bad, the situation is getting worse, and the risks are that it could get very bad," Feldstein said in a speech at the Futures Industry Association meeting in Boca Raton, Florida.

                      "There's no doubt that this year and next year are going to be very difficult years."

                      NBER is a private sector group that is considered the arbiter of U.S. business cycles. Feldstein is also a Harvard economics professor and former economic advisor to President Ronald Reagan.

                      Answering questions from the audience, Feldstein said the downturn could be the worst in the United States since World War Two.

                      ...

                      Feldstein noted "powerful forces (that) will continue to drive inflation higher." And while inflation expectations are still relatively well contained, "you wonder how long that's going to last," he said.


                      Myself, I'm a bit skeptical. If people aren't being laid off in large numbers, businesses aren't shutting their doors, and inflation not that huge, then how can the "real side" of the economy be so deeply hurt?
                      A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

                      "$250,000 a year won't get me to Central Park West."

                      Comment


                      • #12
                        Re: The US Fed is a ______ (fill in the blank)

                        Prices held flat in February, with no measurable inflation, which is a good sign.
                        ---
                        Sources say the Dow Jones' decline is directly related to Dethklok front-man Nathan Explosion's constant deleting of potential new albums.

                        Comment


                        • #13
                          Re: The US Fed is a ______ (fill in the blank)

                          Previous threads about the Fed:

                          http://www.tacticalgamer.com/sandbox...sial-whoa.html
                          http://www.tacticalgamer.com/sandbox...inflation.html
                          http://www.tacticalgamer.com/sandbox...-bernanke.html
                          Dude, seriously, WHAT handkerchief?

                          snooggums' density principal: "The more dense a population, the more dense a population."

                          Iliana: "You're a great friend but if we're ever chased by zombies I'm tripping you."

                          Comment


                          • #14
                            Re: The US Fed is a ______ (fill in the blank)

                            Reading through those, this is my favorite quote. And it's from just over three months ago! Oh, such innocent times.

                            Originally posted by leejo View Post
                            I could be wrong, but I'll be shocked and amazed if the dollar hasn't risen significantly against some of the major foreign currencies this time next year. Soon enough we'll be griping about the trade deficit again as we rush from store to store buying cheap imports.
                            A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

                            "$250,000 a year won't get me to Central Park West."

                            Comment


                            • #15
                              Re: The US Fed is a ______ (fill in the blank)

                              Originally posted by xTYBALTx View Post
                              Reading through those, this is my favorite quote. And it's from just over three months ago! Oh, such innocent times.
                              Eventually he will be correct.
                              Iím not racists, I have republican friends. Radio show host.
                              - "The essence of tyranny is the denial of complexity". -Jacob Burkhardt
                              - "A foolish consistency is the hobgoblin of little minds" - Emerson
                              - "People should not be afraid of it's government, government should be afraid of it's People." - Line from V for Vendetta
                              - If software were as unreliable as economic theory, there wouldn't be a plane made of anything other than paper that could get off the ground. Jim Fawcette
                              - "Let me now state what seems to me the decisive objection to any conservatism which deserves to be called such. It is that by its very nature it cannot offer an alternative to the direction in which we are moving." -Friedrich Hayek
                              - "Don't waist your time on me your already the voice inside my head." Blink 182 to my wife

                              Comment

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