Posted on 08/31/2007 8:13:07 AM PDT by Hydroshock
Federal Reserve Chairman Ben Bernanke, in a widely anticipated speech, reinterated that central bank will "act as needed" to keep the credit crisis from spreading but will not bail out investors who made poor decisions.
"The committee continues to monitor the situation and will act as needed to limit the adverse effects on the broader economy that may arise from the disruptions in financial markets," Bernanke said in a speech at the Fed's annual symposium in Jackson Hole, Wyoming.
But the central bank is not ready to shield investors whose actions have resulted in financial losses, he said.
"It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions," he said
(Excerpt) Read more at cnbc.com ...
Lowering the prime rate half a point would do wonders for investors (those who invest in stocks, not CDs), creditors, and the economy.
Pretty neutral statement that just reiterated his last statement. I don’t think the market realizes, but Ben is not leaning towards cutting at the moment. He appears like he wants to wait until forced to do so. I am sure it was Ben who lit a fire under Bush to act on means to help the credit/housing industry. It is Ben’s hope that take pressure off the fed to cut.
I agree with you, and if we do see a cut I think it will only be a 1/4 point.
As for the borrowers, they got in over their heads and now will lose their a$$es - too bad. If they had not tried to over-reach, they would not be in this situation. No sympathy here.
Yes, however, the unseen rulers wish to return the Clintons into the White House.
“Let the investment banking firms “save” the day - we, the taxpayers, did not share in their fees and commissions, we should not bail them out now and let them just keep their bonuses - go back, bankers, and cut some checks.”
Absolutely on target. Out here in Wino Land, these high rollers with their tricked out BMWs and high end Mercedes emulated the dot.commers during the Clintoon years.
Many upgraded their homes to from million $ homes to multi million $ homes.
Comfort food was/is Kolbe hamburgers washed down with $100 wine after $100 champagne.
Vacations ofter were cruises with the family in connecting suites.
As MarkT noted, few if any of got to nibble on a Kolbe burger, sip some $100 wine/champagne with these high rollers. Nor were we invited to visit their new 10,000 square foot homes for 2 people or to go on a cruise in a suite.
No tears for these high rollers as they slip into the cess pool of overindulgence.
It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisionsSince the Fed has nothing to do with the government, that is private enterprise speaking. But Herr Bush, who want EVERYTHING to do with government, is floating a socialist bailout.
Banks and lawyers never lose.
BTW, ditto, Mark.
Don’t listen to what Bernanke says, watch what he does. He’s aleady provided bailout funds and accepted junk mortgage bonds as collateral. The only purpose of the Fed is to steal the purchasing power of our labor and spread our wealth among its cartel member banks. Wake up America!!
No amount of liquidity will help, it is not a liquidity crisis.
It is a solvency crisis and it is getting worse as the lenders stop lending and the borrowers stop borrowing.
In a confidence crisis we need shrinks. Fed credit window might as well close shop.
BUMP
Picky Picky Picky... LOL
And a helping hand for the little guy who is losing his home???
Sounds like THE FED vs “ the unfed” to me!
As for the borrowers, they got in over their heads and now will lose their a$$es - too bad. If they had not tried to over-reach, they would not be in this situation. No sympathy here.
Worth repeating. So here is :-)
People who put at risk their ability to eat and entertain themselves in order to max out their housing are called ‘house rich,’ usually getting into trouble with ARMs, balloon payments and unexpected personal finance difficulities.
People who put all their money into stocks are just called investors.
When the stock market dives, investors who bail lose.
When the housing market dives, the house rich should nonetheless be able to maintain the payments they contracted to make. How is it constructive to bail them out?
Who bails out the stock investor?
Not going to happen yet.
Inflation is still the number one enemy of both investors and the average (non-investor) person.
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