9 replies to this topic

[Wombat]

Fed. Gov. Poole was interviewed by Kathleen Hays on Bloomberg TV. You can probably find it on Bloomberg, but I just found part of the transcript on this blog:

http://calculatedrisk.blogspot.com/

[nimblebear]

Finally. They see the light.

[selecto]

Funny how most players want the gubment to stay way out of the way, except when they start getting hoist on their petards. Can you imagine the universal agnst, had the gubment suggested regulating away all those acid deals? Lordy.

[OEXCHAOS]

I think that they want them to regulate the currency and stabilize the financial system, not regulate the deals. Seems fair to me. M

[n83]

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

[fib_1618]

Fed Gov Poole sees no need for emergency rate cut

Neither does the market.

Fib

[pdx5]

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.

[IYB]

I think most here know what I think- that it doesn't much matter what the Fed "wants" or "doesn't want". And it really doesn't matter how much public speculation about the future, jawboning, posturing and strutting they do. Thier opinions are quite interesting because these guys are generally very good economists. But those opinions change nothing. In the end, they will have no choice. The economic cycle is the puppetmaster. The inevitable march towards lower rates continues...jmho, D --------------------------------------------------------------------------- PS- great to see you here Dave! Hope you're doing well....

Edited by IYB, 15 August 2007 - 09:14 PM.

[humble1]

wombat: poole: "only a calamity would justify a rate cut". oh, my: talking about tempting the gods thanks for pointing that out; i had missed it and it IS significant, imho. poole seems like the kind of a guy who, finding himself in a hole, calls for a bigger shovel ! i must say, though, that i find myself agreeing with those who say that the fed power is very limited. think about that LIBOR rate, which is creeping higher and which the fed does not control and which defines so many consumer and mortgage loans. THAT may be the big story. kaizer, what say you about that, sir. i value your opinion so very much. regards

Edited by humble1, 16 August 2007 - 04:42 AM.

[OEXCHAOS]

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