Posted on 08/24/2007 5:35:44 AM PDT by Hydroshock
Yes, because deflation and a plunging stock market is preferable and has worked so well in the past.
/sarc
You are asking for deflationary monetary policy...the exact trick that ushered in the Great Depression.
Congrats on repeating the mistakes of History.
Yes - and guess what? Neither of them has ONE DAMN THING to do with the Fed.
And throwing more money at this is what caused this problem in hte first place. Like I said nothing can stop the coming recession.
Except, you want lower prices on energy.
QUIZ: So when will energy investment be greater, when energy prices are high or low?
Yes - and creating a situation where 80% of the people in a given area can’t sell their homes for 12 years, and are increasingly losing the jobs by which to pay for them, certainly doesn’t help ANYONE’s situation.
That's exactly right! Either Hydroshock is a vulture hoping to profit from the misery of others or he's just a stooge of leftists/marxists who see recession/depression as a great way to install Hillary and the fresh wave of socialism she would bring.
Nine posts for a crappy comment, a new record, congrats. Actually Ford makes quite good cars.
Yup. Inflation is soooo six months ago, but some people insist on fighting the last war
It helps the vultures.
Would you like a bullet for the gun you have pointed at your head?
Geez...Can you get any more doom and gloom?
No, it was the foreign money that said that they would buy any mortgage (and pay a premium!), no matter how risky.
...and the foreigners had so many Dollars because the Dollar was priced too high for the amount of imports that the U.S. buys.
Which is to say: "We import too much."
You ready to predict GDP growth for 2007? For 2008? Don't be a coward.
You been to the grocery store lately? Inflation is being under reported and is in the the 6 to 7 % range, and Im talking about services, food, many commodities. Bailing out the dumbasses who bought stuff on east credit by lowering borrower rates is IDIOTIC
First of all, you don't understand the problem.
The lending world is not in trouble because of thousands of foreclosures or hundreds of thousands of sub-prime loans. Those are just symptoms, not root causes.
...But having no ability to sell old loans on the secondary market is a "cause" that will grind the rest of the economy to a halt.
That's a dearth of money, by the way. Too little money.
Well, where did the money go?
The answer, of course, is that we sent our Dollars overseas for cheap Chinese trinkets. And now they are hoarding Dollars instead of buying the same amount of commercial paper that they bought in the past (they've got problems of their own because they've been selling for less than what it costs to make their goods).
I agree.
Deflation, particularly in a country where cash savings are scarce, would be extraordinarily painful. Even Japan, with enormous cash reserves, had a very difficult period when deflation reigned. I wouldn't want to see what would happen to us.
I am not sure how we can escape the bursting of this real estate bubble, but I don't think that simply letting prices dive would be the wisest course.
I don't like inflation, but I think it's going to have to be part of the solution to this particular problem, along with a certain scarcity of speculative real-estate loans. I think that the market can accomplish these goals, particularly if the Fed is accommodating.
If I were at the Fed, I would be studying the Bank of Japan papers on its quantitative easing policy (QEP) very hard right now. I know that they have had some attention in the past, but I think that the BOJ carried off its very difficult situation extraordinarily well. If I were at the Fed, I would also be asking some very hard questions about the exact level of non-performing loans (NPLs) we have in the U.S.; Nichigin saved more NPLs than I think we would in the same circumstances, but the real question to me is what level of NPLs are we looking at currently.
You been trying to sell a house recently?
Hmmm...let me think...which costs more, groceries or houses?!
Look at the bright side the cost of housing is going down, with a bullet in some areas.
Interesting thread. Thanks for starting.
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