Posted on 04/18/2006 10:22:45 PM PDT by Ernest_at_the_Beach
No doubt. With the price of oil were it is, any further attempt to raise interest rates will cause a recession. So much for that idea. I would be suprized if it drops back down to near zero.
wouldn't
They don't have a clue. OR, they are lying about their reasoning. The numbers are bogus.
A number is just a number. One possibility is that if the Fed really does stop, the dollar will devaluate faster and the dollar denominated price of stocks/assets will accelerate as a function of inflation. It is one thing to have the market hit $14,000 with low inflation and quite another to do so with high inflation. If the $14,000 buys you more in gallons of gasoline then, then $11,000 would today, we are doing good - otherwise we are screwed.
Wouldn't be surprised, but it wouldn't be helpful. Its starting to make commercial financing very unpleasant and it is more likely than anything to cause some real estate markets to go into negative territory.
LOL!!! Folks were posting mere weeks ago the end of the world.
The fed policy reversal is a good move, if it's not a ruse. We'll see.
Over the past year housing prices were completely flat in this market (actually down like a hundredth of a percent) after rising dramatically year after year previously.
Plunge Protection Team printing press runs low on oil. Will withhold next quarter point rise for two weeks until oil shipment arrives. Sends signal to New York banks to raise late payment rates to 39.99% and hoist Jolly Rogers flag.
Ruse. These notes are from weeks ago; at least two Fed Governors in the past week have said that they are still concerned about inflation.
Plus, this makes the sixth meeting in a row by my count that they have made the soothing coos of "almost done".
Seems unemployment and inflation are in fluctuating balance -- this is good! Better than good. Astounding!
In the 60s, Friedman and Phelps came up with a long-term theory about the inflation/unemployment scenario (Phillips curve) and showed how MUCH expectations and or attitude factor into whether or not economic drama is short-lived or long-term.
And weeks back, naysayers were all saying "doom... DOOM!" Run Fer Yer Lives! Inflation, Inflation!
Really p'd me off. There was NO SUBSTANTIVE reason for these gossipy, negative rumors except to fuel the gold market and while that is not a bad thing; what galled me most -- is the fearmongering seemed to be coming from areas of the MSM with an Anti-Bush agenda.
The Keynes model has value; but inflation is a given. There's absolutely no way to make inflation "go away" unless we bomb the tar out of every country and make everyone go back to a third world existence. This is precisely what socialists clamor for.
But just so "inflation" isn't given the only "bad name status" -- those who borrow money for non-investible debt -- do the same thing, effectively. They pour non-existing money into a system -- thereby demanding someone somewhere cover their debt when they go into default.
You can no more stop people from doing stupid things than you can say "inflation" shouldn't exist.
Inflation is as real a factor of "economic life" as are profits and margins, etc.
What's the lib solution: hate the evil credit card companies. But hate the feds even more. It's not the job of credit card companies to "monitor" how people spend the money they borrow from their cards. At least with a loan process, there is securities involved and an approval process.
Yes. There's also the information spewing from different market interests. Some get more profits from rising rates and a high US dollar. Others get less.
The real-estate market is tied into employment. The Northern Virginia is in the high end for new expected jobs.
I read today that in February 2005, there were 7800 houses that changed hands in Northern Virginia. That figure was 7000 in February 2006. Prices aren't going down here, but it is taking longer to move the property....depending on the location.
Exactly. The current economy is moving exports. Moving exports means MORE JOBS for citizens.
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