15 replies to this topic

[zedor]

This is the second warning from a big wig from the FED in so many days that all the hooplah about rate cuts is missplaced.

Greenspan was asked if he would lower interest rates as dramatically and quickly now as he did just ahead of, during and in the wake of the 2001 recession, according to excerpts of the CBS "60 Minutes" interview released Thursday.

"I'm not sure that's true," he said. "We were dealing with an environment back then when inflation was easing. We could have acted without the fear of stoking inflationary
pressures."

"You can't do that anymore. ... I'm not sure I would have done anything different (if chairman today)," he added.

And we have AG's admission he knew before he left office of the crisis to come which means Bernanke has been in the know all along.

Greenspan said that as Fed chief he knew about questionable lending practices that were leaving subprime borrowers with adjustable rate loans vulnerable to harm from rising interest
rates, but did not recognize those loans would trigger broader problems until fairly recently, CBS said.

"I Didn't Get It"

"While I was aware a lot of these practices were going on, I had no notion of how significant they had become until very late," Greenspan said. "I really didn't get it until very late
in 2005 and 2006."

full article http://www.cnbc.com/id/20757448

Edited by zedor, 14 September 2007 - 06:03 AM.

[redfoliage2]

Ok, then the rate will be lower. Ben will do the exact opposite to what Greenspan is saying since Greenspan now is paid from Bill Gross and Ben works for the Fed.

[bullshort]

"We were dealing with an environment back then when inflation was easing. We could have acted without the fear of stoking inflationary pressures."

Who is he kidding? Like we haven't seen much inflation over the last 8 years. Okay, I forget, the cost of computers has actually deflated.

Just my feel, but I'd say prices for what we actually spend money on (housing, medical, food, entertainment, tuition, etc.) have more than doubled over the last 8 years. Cars . . . maybe up what, 50 percent?

Edited by bullshort, 14 September 2007 - 07:44 AM.

[OEXCHAOS]

Just my feel, but I'd say prices for what we actually spend money on (housing, medical, food, entertainment, tuition, etc.) have pretty much doubled over the last 8 years.

Out here, housing is up, still, but I'd say the cost of a home is up only about 20%, net of the last decline. Rents are basically flat or up maybe 10% in hip places. My grocery bill is up, maybe 25% on average for the entire period and most of that over the past 2 years. Wine? about the same, though I'm a shopper and I am very price sensitive. The quality, however, has not declined for the money I spend. Entertainment? I'm not sure how to calculate that. Bars are up a bit, movies a bit less. Cable? I dunno. My Netflix are down, though, and more and more interesting stuff is available on DVD fairly cheaply.

Still seems like only health insurance, property taxes, and tuition are up all that much.

All things with disempowered consumers and plenty of government power.

Mark

[thespookyone]

Health insurance is unafordable to many-just rediculous. Wine on the other hand presents incredible quality for price the last couple years-has been a great excuse to expand my cellar. Odd thing is, I think we owe it to the failed dot coms, somewhat. When the ex dot com guys started making some great wines (love some of the west coast pinot noirs and zins), they caused the French to cave price wise on some truly superior wine-I think that's what you call a "win,win",LOL.

Edited by thespookyone, 14 September 2007 - 07:57 AM.

[skyymaster]

Don't forget, Market is up to

[arbman]

The rentals have practically doubled since 1999 in Los Angeles.
I think the rents depend more on the location...

Many commodity prices are significantly higher, especially oil, it is only a matter of time until the producers are forced to pass these prices down to the consumers, the labor rates are steady and climbing despite the stagnant labor market...



The price risks are to the upside unless the economy and the commodity prices cool down together, a deflation. From the looks of it, even if the economy goes into a more severe slow down, the commodity prices will stay in a sideways or bull market...

- kisa

[bullshort]

Don't forget, Market is up to

September 13, 1999:

S & P - 1344.13, Nasdaq - 2844.77

September 13, 2007:

S & P - 1483.95, Nasdaq - 2601.06

You're right, there's been little inflation. However, I did look up my health insurance. Same company, same coverage, same deductible. 1999 - $1,730/yr. 2007 - $8,196. I'm sure we can find things to make the case for both sides. Point is, I don't think the official numbers bear any resemblance to reality in the overall picture.

[arbman]

Your rate will go up because you got older too, 10 years is not a short time frame, especially if you are now older than 55. There is a big difference in between below 50 and over 50 probably...

Edited by kisacik, 14 September 2007 - 08:29 AM.

[dasein]

Your rate will go up because you got older too, 10 years is not a short time frame, especially if you are now older than 55. There is a big difference in between below 50 and over 50 probably...

Kisa, i think you are thinking of life insurance, for health insurance there is no difference depending on age, at least if you get it through an employer, and I know one plan here for independents that makes no age distinction.

BTW, i just got better health insurance in Germany for 1/10th the price of what i paid here.

klh

Edited by dasein, 14 September 2007 - 09:17 AM.