Fed Gov Poole sees no need for emergency rate cut
#1
Posted 15 August 2007 - 06:51 PM
http://calculatedrisk.blogspot.com/
#2
Posted 15 August 2007 - 07:03 PM
#3
Posted 15 August 2007 - 07:30 PM
#4
Posted 15 August 2007 - 07:31 PM
Mark S Young
Wall Street Sentiment
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#5
Posted 15 August 2007 - 08:10 PM
I think that they want them to regulate the currency and stabilize the financial system, not regulate the deals.
Seems fair to me.
M
translate..they want a free lunch-g crybabies those IBs
#6
Posted 15 August 2007 - 08:50 PM
Neither does the market.Fed Gov Poole sees no need for emergency rate cut
Fib
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#7
Posted 15 August 2007 - 08:52 PM
I think that they want them to regulate the currency and stabilize the financial system, not regulate the deals.
Seems fair to me.
M
So, let me try to understand this conundrum. First the Fed creates a housing & credit
bubble by dropping rates to 40 year record lows and injecting prodigious amounts of
liquidity (=credit & loans). Now they need to do what to stabilize the system? Add more
liquidity in the form of more credit? Drop rates and create another housing bubble? I am
from Iowa and that is called adding fuel to the fire where I come from. It is best to let
the fire burn itself out. It won't be the end of financial world. Sure, some speculaters
will get hurt, some imprudent business practitioners will fail. Boo Hoo.
#8
Posted 15 August 2007 - 09:09 PM
Edited by IYB, 15 August 2007 - 09:14 PM.
#9
Posted 16 August 2007 - 04:34 AM
Edited by humble1, 16 August 2007 - 04:42 AM.
#10
Posted 16 August 2007 - 07:00 AM
I think that they want them to regulate the currency and stabilize the financial system, not regulate the deals.
Seems fair to me.
M
So, let me try to understand this conundrum. First the Fed creates a housing & credit
bubble by dropping rates to 40 year record lows and injecting prodigious amounts of
liquidity (=credit & loans). Now they need to do what to stabilize the system? Add more liquidity in the form of more credit? Drop rates and create another housing bubble?
Yes. The biggest single expense that folks have, housing, has dropped significantly in value. That's deflationary. There's no need to keep rates high, but there's significant value to dropping them.
How many "crashes" occurred during the 2000-2003 Bear market?
Answer: None.
Musta been a co-incidence...
I am
from Iowa and that is called adding fuel to the fire where I come from. It is best to let
the fire burn itself out. It won't be the end of financial world. Sure, some speculators
will get hurt, some imprudent business practitioners will fail. Boo Hoo.
Yanno, when an addict wants to quit, he's going to have a much higher chance of success if he weans himself off the drug rather than have it yanked from him unceremoniously. Ever try to quit smoking?
This isn't a moral judgment, it's pragmatic economics. There are innocents who will be or are being hurt, not just the greedy and stupid big players.
Mark
Mark S Young
Wall Street Sentiment
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