Ford chief urges Fed action (Emaciated corpses litter streets!)

http://money.cnn.com/2007/08/24/news/companies/ford_fed/index.htm?postversion=2007082406 ^ | 8-24-07

[Hydroshock]

NEW YORK (CNNMoney.com) -- Ford CEO Alan Mulally became the latest high-profile business executive to suggest that the Federal Reserve needs to cut interest rates, according to a report published Friday.

Noting that credit conditions were posing a "big headwind" to the company's turnaround plan, Mulally told the Financial Times he is concerned about the state of the larger economy.

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"It is a really important job to manage inflation and economic growth [but] focusing on economic growth appears to be a really important priority now," Mulally told the paper, hinting that the central bank needs to take action.

The Federal Reserve, which works to keep inflation in check and promote economic growth, has resisted calls to lower the federal funds rate from its current level of 5.25 percent.

The key interest rate, which has remained unchanged since June 2006, directly impacts consumer loan rates on everything from credit cards to auto loans.

[Moonman62]

Hindering economic growth is inflationary. The funds rate needs to be brought down to market levels.

[Hydroshock]

“The high wage begins down in the shop. If it is not created there it cannot get into pay envelopes. There will never be a system invented which will do away with the necessity for work.”
— Henry Ford
There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.
— Henry Ford

[BlabItGrabIt]

LET’S GO, CHAIRMAN—CUT THOSE RATES TO SAVE THE HOUSING MARKET. CUT ‘EM YESTERDAY, SIR

[Hydroshock]

Doing that will create inflation,and that will wreck teh economy. NO BANKER BAIL OUTS!!!

[Moonman62]

Doing that will create inflation,and that will wreck teh economy.

No it won't.

[Moonman62]

Don’t you believe that high wages are inflationary.

[Petronski]

Doing that will create inflation,and that will wreck teh economy. NO BANKER BAIL OUTS!!!

Funny understanding of economics PING!

[slackerjack]

Doesn’t the Ford CEO have better things to do? Like learning how to not manufacture crappy cars with poor gas mileage that noone wants to buy?

[Hydroshock]

It always has inthe past, the primary reason the home prices have shot up in the past 5 years or so is cheap money. Cheap money is one cause of inflation.

[RockinRight]

But millions of companies shutting down, housing prices declining 60% due to unavailability of any sort of financing, and the stock market plunging won’t??

That’s logical.

[Hydroshock]

Decent wages are the only sure way to sustainably grow the economy. Cheap bailout money is a band aid fix.

[Southack]

Is it really going to take multiple posts to get it into your head that inflation is dead such that DEflation is rearing its ugly head, instead?!

You act as though economics haven’t been explained to you.

[Hydroshock]

[Toddsterpatriot]

Most of these doomers have a very poor understanding of economics. That’s why they’re doomers.

[RockinRight]

That explains the problem within the industry. Doesn’t refute MY point that the things I mentioned are worse than inflation.

[RockinRight]

Math is hard.

[Hydroshock]

No we at this point need to stop inflation that is concern one.

[Southack]

"Decent wages are the only sure way to sustainably grow the economy."

No. You grow the economy by adding value. Birth a child...you've added value (usually). Create a product...you've added value (usually).

Become more efficient...you've added value (usually). Become more productive...you've added value (usually).

Increase the multiplier of money transactions...you've added value (always). This is why increasing the speed of money is so important.

So look for solutions that add value to our economy. What will make us create more products, become more efficient and more productive, increase the speed of money, etc?!

HINT: lower prices or more scarce Dollars aren't the expected answer.

[Petronski]

Digging deep into the moonbat left feverswamp, I see.