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.

[RockinRight]

So smarty pants, what do you suggest I do for a living, with 8 years experience, doing a good, ethical job of residential finance (which so far I’m still doing well at BTW?)

What would pass your “real job” test?

[Iwo Jima]

I’m a trial lawyer.

[fatboynic]

You could always sue someone... ?

[RockinRight]

Apparently so. It’s like saying:

“A few Catholic Priests molested kids. Therefore, all priests deserve to be defrocked and excommunicated by virtue of not getting a ‘real job’ with a ‘real religion.’”

[djf]

My sincerest congratulations.

I had the extreme privilege of being married to one of the top ten most beautiful women I ever saw, I am not exaggerating.

And she was even more beautiful on the inside than the out.
Sadly, she passed at a very young 40 or so.

Almost killed me.
Still might.

But those 12 years were the happiest, most creative and tender years of my life.

Good luck!

[Iwo Jima]

Yes, indeed. In my other posts I used the term “made or bought stupid loans.”

[RockinRight]

Thanks!

We’ll be fine, from a love, marriage, family, and commitment standpoint.

Just might be in a soup line is all. ;-)

[RockinRight]

If you’re serious, that explains a lot.

If you’re not, I’ll say that I’m trying to be serious here.

[RockinRight]

Iwo Jima can represent me.

[capitalist229]

Cars, housing, what's next you ask ?

Credit derivatives in the trillions. Nobody knows what they're worth and the Fed does not have enough money to prop them up.

BUMP

[RockinRight]

You failed to answer my other question:

If you think I don’t have a real job, what’s a good real job for me?

[girlscout]

It’s 2007. You’d think people would get a clue by now. I guess all corporations are corrupt now just because Enron was.

[Iwo Jima]

I agree that there is such a thing as deflation and that while it is more rare than inflation it can be just as destructive or more so than inflation. The Great Depression of the 1930s is a good example.

Where I differ with you is whether we are experiencing inflation or deflation now. All my experience tells me that we are experiencing inflation not deflation.

Money is a commodity, albeit a rather unique commodity due to its use as a medium of exchange for other commodities. As such, the laws of demand and supply apply.

Merely increasing the money supply is not necessarily inflationary, and merely decreasing the money supply is not necessarily deflationary. It all depends on the demand for money.

If the demand for money is too bail out malinvestments, then that is not truly a market demand for money and to supply sufficient money to the system in order to avoid the natural effects of that malinvestment is wrong and inflationary, IMHO.

[fatboynic]

Great. Then let's acknowledge one other group: Those that actually took these ridiculous loans out for themselves. Shouldn't they be held personally responsible for their terrible borrowing habits/mistakes?

[Iwo Jima]

I'm not your daddy. And neither is the government.

You'll figure something out. I have faith in you.

[Iwo Jima]

Sure. Who’s saying that they shouldn’t be?

[Southack]

"Where I differ with you is whether we are experiencing inflation or deflation now. All my experience tells me that we are experiencing inflation not deflation."

I doubt that you feel that way. That's just what you tell yourself.

For instance, do you think that housing prices are going up (which they do when we have inflation) or down (which they do when we have deflation)?

[RockinRight]

I did figure something out, that I’m good at, I enjoy, and get paid well for.

[RockinRight]

I’m not asking the government or my “daddy” to figure anything out for me.

I’m just asking how a trial lawyer is more of a “real job” than a mortgage banker or loan officer is.

[Iwo Jima]

Well, in my neighborhood, prices are going up, just not as much as they were. I know that prices elsewhere are going down, but that’s only to be expected if they were too high to start with.