Posted on 08/30/2007 5:47:59 AM PDT by Hydroshock
Predicting a recession is about as reliable as forecasting where a hurricane will hit.
But that hasn't stopped CEOs, government leaders and economists from bringing up the "R" word in recent days. And nearly all of them have a simple solution: the Federal Reserve should cut interest rates--and soon.
J. Scott Applewhite / AP Fed Chairman Ben Bernanke. --------------------------------------------------------------------------------
"Your 17 rate increases have worked--mission accomplished," AutoNation CEO Michael Jackson advised the Fed during a CNBC interview on Wednesday. "From my 40 years in the business, I look at the American consumer. They've pulled back, and every time they pull back you bring recession back into play."
The growing chorus for a rate cut stems from worries that the subprime meltdown and resulting credit crunch will cause consumers to stop spending. And if consumer spending--which makes up 70% of the economy--declines, a recession can't be far behind.
The problem is, most economists think a recession is unlikely for now. So is a rate cut really needed?
(Excerpt) Read more at cnbc.com ...
Watching the market, it sure seems like some blackmail is going on. I get real cynical especially when massive things happen in the final hour.
A whole bunch of ‘companies’ made questionable loans hoping for big paybacks and now want the taxpayer to bail them out.
If they couldn’t get the money from customers on the loans outrageous intrest schemes, then get it from the taxpayers.
Let the market take care of itself.
The Fed Funds rate is currently higher than every point on the Treasury yield curve.
This is insanity.
Listen to the market and start cutting those rates Unlce Ben.
Agreed.
The rates are to low as it is.
Total BS... the left wants to defeat America in Iraq and on Wall Street... Only America falling can help the dims! To believe this is to believe evil lies.
LLS
One we now have asset deflation accross the board: gold, equities, real estate, so I think your inflation concerns are little more than "fighting the last war."
Next how on earth can you defend that the fed has it's discount rate WAY higher than treasuries.
If the Fed is to low then the Treasuries are way to low...
The Fed should follow the market rates, not try to run the economy like they are right now with a rate that can longer be justified.
GDP growth for the Quarter came in at 4.0%
Actually to me this is bad news as it gives ammo to the anti-rate cut people.
The dims are determined to have a recession now, under W. Could the possiblity be linked to THEIR legislative efforts - raise taxes, harassment of all Republicans who dare breath, etc.?
The indexes keep bouncing off of 13,000 DOW. Some resistance there. There have been several days recently when the market has flirted with going below and bounced back.
Well Greg I expect the stock market will meander back and forth until Sept. 18th. Then will start going up or fall thru the resistance level based on the Fed’s action.
35% to 50% drop in the index . . .
What on earth are they thinking? It would take a nuke to make that happen, we’d be looking at 8,500 Dow.
Well Greg I expect the stock market will meander back and forth until Sept. 18th. Then will start going up or fall thru the resistance level based on the Fed’s action.
Hence, your good news is bad news view of economic growth. Sounds reasonable to me.
people are calling it the Bin Laden trade
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Heh. Like Goldfinger making a gold play and nuking Fort Knox . . . “I want you to die Mr. Bond.”
Time to top off the gas tank.
Thanks for bringing something totally wierd and largely unnoticed to the discussion.
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