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Location: Sitting on a bar stool. Guinness in hand.
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OK, The FED lowered both the Discount rate and the FED Fund rate each by 50 basis point. What are your predictions for the economy for the next 3, months and/or 1 year?
I personally don't have a good feeling. I'm worried about the dollar's strength and the possible return of high inflation.
On another note. Do you find Moral Hazard with the Fed's decision today?
I feel betrayed as a consumer and investor that was responsible during the irrational exuberance of 2003 -2005. Today's decision doesn't incline me to be all that responsible with monetary matters.
I'm not angry at the Fed that I was responsible from 2003 to 2005. I am however not happy with the rest of the country's craziness.
I am more worried with what the message is from the Fed -- which is clearly that they see a recession looming on the horizon. Its coming it seems .. the question is have they managed to delay it for a long term, or just the short term..
OK, The FED lowered both the Discount rate and the FED Fund rate each by 50 basis point. What are your predictions for the economy for the next 3, months and/or 1 year?
I personally don't have a good feeling. I'm worried about the dollar's strength and the possible return of high inflation.
On another note. Do you find Moral Hazard with the Fed's decision today?
I feel betrayed as a consumer and investor that was responsible during the irrational exuberance of 2003 -2005. Today's decision doesn't incline me to be all that responsible with monetary matters.
I think we're going to continue to struggle economically with spikes and small crashes of the stock market amidst confusing and often conflicting reports of economic indicators and headline news. Overall I think we may potentially come close to even seeing a related run for the banks and fuel pumps at some point. I suspect that all the paranoia will be for nothing though because rationality will win in the end due to the technology-facilitated Information Age we happen to be a part of now.
What the information age reveals to those who take the time to research that which is freely available to all of us is that money is basically an illusion and the supporting global economic & political systems are all a zero-sum game. A game which many have mistakenly come to believe is important to achieving happiness and progress.
The truth is that as long as the US and other countries of the world can continue to leverage and trade resources to feed, cloth, provide services to, and shelter people, things will be "ok." None of those things appear to be at risk right now. What does appear to be at risk are the status-quo methods of getting things done. However, other than shaking up mental and social paradigms and causing temporary economic hiccups in local or regional areas, I think there's little to really worry about.
All that said, rather than needless worry about things which you have little or no control, you would do well to instead focus on things within your power. What happens to the global economy is outside your power. What happens to the stock markets is outside your power. Whatever happens in the global political scene may be out of your power as well. Focus on things such as deciding who to vote for to represent you in local and national government, live as an example to others for how you feel people should act, actively participate in live and virtual debate and continue to dialog about world happenings. Lastly recognize that your time here is limited, so just do the best you can in all things.
OK, The FED lowered both the Discount rate and the FED Fund rate each by 50 basis point. What are your predictions for the economy for the next 3, months and/or 1 year?
I personally don't have a good feeling. I'm worried about the dollar's strength and the possible return of high inflation.
On another note. Do you find Moral Hazard with the Fed's decision today?
I feel betrayed as a consumer and investor that was responsible during the irrational exuberance of 2003 -2005. Today's decision doesn't incline me to be all that responsible with monetary matters.
i wish greenspan was around.
stephen s
san diego ca
I agree with the Fed, and am not worried about the moral hazard. Being self righteous and watching the economy go down the tubes makes no sense to me. Of course those who overreached should not be rewarded, and I don't believe the Fed action rewards this behavior at all.
Making credit more affordable is not the same as giving folks bailouts on homes. Those who bought homes as investments, in other words those not living in the purchased house, should simply be impacted by market forces. If this allows them to refinance at a slightly lower rate, big deal. They still have the full financial liability and vulnerability.
For those living in the homes they bought with dicey financing, I think allowing them to refinance via FHA at a better rate is a good thing, at their full owed mortgage balance. This move doesn't subsidize these mortgages.
Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 6,520,723 times
Reputation: 1721
One way or the other.
Quote:
Originally Posted by NewToCA
I agree with the Fed, and am not worried about the moral hazard. Being self righteous and watching the economy go down the tubes makes no sense to me. Of course those who overreached should not be rewarded, and I don't believe the Fed action rewards this behavior at all.
Making credit more affordable is not the same as giving folks bailouts on homes. Those who bought homes as investments, in other words those not living in the purchased house, should simply be impacted by market forces. If this allows them to refinance at a slightly lower rate, big deal. They still have the full financial liability and vulnerability.
For those living in the homes they bought with dicey financing, I think allowing them to refinance via FHA at a better rate is a good thing, at their full owed mortgage balance. This move doesn't subsidize these mortgages.
Euro hits new high against dollar - Yahoo! News (broken link)
Oil will hit $100 but probably not in 2007: Pickens - Yahoo! News (broken link)
Oil retreats after hitting new record - Yahoo! News (broken link)
We may have dropped rates but Oil is still going to go up (Not just talking about gasoline but plastics and other items costs as well.)and the dollar just fell off a cliff yesterday. The economy is going down the tubes one way or the other. I just would rather get the correction over with now instead of waiting for things to get worse.
We may have dropped rates but Oil is still going to go up (Not just talking about gasoline but plastics and other items costs as well.)and the dollar just fell off a cliff yesterday. The economy is going down the tubes one way or the other. I just would rather get the correction over with now instead of waiting for things to get worse.
OK, what would you have done, what consequences would you expect, and why do you feel it would be a more appropriate approach?
I think things will get worse. A lot more mortgages are going to re-set well into 2008. I'm not happy that a bunch of people were suckered into buying more house than they could afford and weren't able to understand or read the fine print of what they were getting into. Lenders shouldn't have been lending to people without verifying the borrower's income and other information. And there were a lot of investors who invested in these "bundled" investments of loans without knowing what they were getting into (such as Northern Rock, a British bank which had a "run" on the bank the other day and had to be bailed out by the Bank of England). I think some of this borders on fraud.
Last edited by humboldtrat; 09-19-2007 at 05:06 PM..
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One way or the other.
