24 replies to this topic

[SemiBizz]

We know it wasn't the economy, stupid... Now what don't we know yet that caused him to completely throw all his principles out the window?

[NAV]

We know it wasn't the economy, stupid... Now what don't we know yet that caused him to completely throw all his principles out the window?

You are grossly mistaken. He is living upto his principles.

http://www.federalre...121/default.htm

[SemiBizz]

We know it wasn't the economy, stupid... Now what don't we know yet that caused him to completely throw all his principles out the window?

You are grossly mistaken. He is living upto his principles.

http://www.federalre...121/default.htm

That's old news... here's what he said in August... what was that, a month ago?



<H1 class=all>Press Release</H1> Release Date: August 7, 2007

<H3 class=prTime>For immediate release </H3>

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. Economic growth was moderate during the first half of the year. Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.

Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.

Although the downside risks to growth have increased somewhat, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Michael H. Moskow; William Poole; Eric Rosengren; and Kevin M. Warsh.




KEY WORDS: INCOMING INFORMATION

Edited by SemiBizz, 18 September 2007 - 03:54 PM.

[NAV]

We know it wasn't the economy, stupid... Now what don't we know yet that caused him to completely throw all his principles out the window?

You are grossly mistaken. He is living upto his principles.

http://www.federalre...121/default.htm

That's old news... here's what he said in August... what was that, a month ago?



<H1 class=all>Press Release</H1> Release Date: August 7, 2007

<H3 class=prTime>For immediate release </H3>

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. Economic growth was moderate during the first half of the year. Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.

Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.

Although the downside risks to growth have increased somewhat, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Michael H. Moskow; William Poole; Eric Rosengren; and Kevin M. Warsh.

That's the official Fed position, which means nothing. The Nov 2002 speech is what Mr Bernanke's true faith is.

[Mtrader]

Panic panic. Don't fight the FED.

[eminimee]

nice stick

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=1&mn=6&dy=13&i=p20481032191&a=79053340&r=1316.png

[SemiBizz]

OK Nav... here we go, from that speech:

The second bulwark against deflation in the United States, and the one that will be the focus of my remarks today, is the Federal Reserve System itself. The Congress has given the Fed the responsibility of preserving price stability (among other objectives), which most definitely implies avoiding deflation as well as inflation.

You ready to argue that this move is not inflationary?

[NAV]

OK Nav... here we go, from that speech:

The second bulwark against deflation in the United States, and the one that will be the focus of my remarks today, is the Federal Reserve System itself. The Congress has given the Fed the responsibility of preserving price stability (among other objectives), which most definitely implies avoiding deflation as well as inflation.

You ready to argue that this move is not inflationary?

No no no...i am arguing that this move is not just inflationary, but hyperinflatory over the coming years. And Mr Bernanke is living upto his principle of throwing money from the helicopter.

[SemiBizz]

I think the case will be made that he has "out easy"-ed Easy Al. He either has been telling us bold faced lies about the credit crisis AND the economy, or he the dumbest SOB we have ever seen in our government, all present players included... This guy is a sellout, the market is going to take the premiums here and run.

[SemiBizz]

Rate Cut, Now what?
Acknowledging "moderate" economic growth during the first half of 2007 and tightening credit conditions that could further intensify the ongoing housing correction, the Federal Open Market Committee Tuesday slashed the federal funds target rate to 4.75 percent.
Home builder stocks jumped on the news of the rate cut, with D.R. Horton, Lennar Corp., Centex Corp., Pulte Homes, and Toll Brothers all posting gains Tuesday afternoon. The biggest gainer on Tuesday was Hovnanian Enterprises, which saw gains of 15 percent.
But that may just be a temporary reaction, says Christian Weller, senior fellow at the Center for American Progress and professor at the University of Massachusetts Boston.
"Once the markets digest the news, they will settle down or even decline because it may be seen as a sign that the Fed knows something about the state of institutions and the mortgage market that the rest of the world does not know, i.e., people may assume that things are worse than they seem," Weller says.
At the Credit Suisse Homebuilders Conference in New York today, investment gurus, private equity leaders, and home builders were given a 15-minute break to watch the Fed's announcement on a live news feed. While a rate cut was widely expected, experts were unsure whether the Fed would cut its target rate by 25- or 50-basis-points. Reaction to the news of a 50-basis-point rate cut was mostly positive

Ian McCarthy, CEO of Atlanta-based Beazer Homes USA, says that Tuesday's action by the Fed is more likely part of a multiple-step approach to prop up the economy.
"I expect that there will be subsequent cuts down the road," McCarthy says. "The message the Fed is conveying [to consumers] is that it's a good time to buy."
Hovnanian CFO Larry Sorsby feels the Fed's move could get consumers back in a home buying mood, noting that the cut will have "a significant effect on the psychology of the buyer."

At the end of his presentation Tuesday at the conference in New York, Moody's Economy.com chief economist Mark Zandi said the rate cut could do wonders for confidence, which has been flagging.
"The key link between monetary policy and the economy is confidence: investor confidence, consumer confidence, and business confidence," Zandi says.

But not all builders agreed that the rate cut would significantly alter the home selling and home buying market, where a massive oversupply of homes has flooded the market, driven down home prices, and caused potential home buyers to sit and wait for further price reductions. Lack of available credit to certain segments of the population--those without good credit scores and plenty of money in the bank--also has been cited as a reason home buying activity is off.
"It's not going to change mortgage rates, and it's not going to have an immediate impact on who comes into our sales offices," says Gordon Milne, CFO of Ryland Homes, based in Calabasas, Calif. "But it should give more people confidence about the economy, and their jobs."
Antonio Mon, CEO of Technical Olympic USA, based in Hollywood, Fla., expects more rate cuts, noting the Fed has a responsibility to quiet the current economic tumult. "They can't let this go on for much longer," he says."It will spur demand, but I don't see the argument that a reduction in rates will have a significant impact on sales," Mon says. "The inventory overhang is so massive that it is going to take several quarters for this to sort out."
Earlier this month the chief executives of America's largest builders met with Federal Reserve Chairman Ben Bernanke. Though the building CEOs have been mostly mum on what transpired in that meeting, National Association of Home Builders chief economist Dave Seiders also sat in on the meeting and says the home builders were effective in voicing "some pretty sobering messages about what's happening in the markets."
Seiders and the NAHB also supplied the Fed with results from a number of surveys the builders' group had undertaken, showing sales down and cancellations increasing in August, Seiders says.
John Burns, president of John Burns Real Estate Consulting, in Irvine, Calif., says he is proud of the CEOs for meeting with the Fed and "encouraging this reaction."
Still, Burns is skeptical about how much impact the Fed's move will have.
"Unfortunately, this reduction is too little and too late because it usually takes six months for a Fed cut to work its way through the economy, although its impact on mortgage rates is immediate," Burns says.
Weller agrees that the rate cut may not be a cure-all that some seem to hope it is.
"The current mortgage and housing market troubles were several years in the making, and it could take several years for the oversupply and the bad loans to decrease to a level where mortgage lending activity will increase again," Weller says.

Edited by SemiBizz, 18 September 2007 - 04:55 PM.