Desperate times call for zero rates from Fed

Times of London ^ | 12/02/08 | Gerard Baker

[TigerLikesRooster]

Desperate times call for zero rates from Fed

Gerard Baker: American view

It did not take long for a brief moment of hope on the US economic front to turn to ashes yesterday.

The weekend marked the beginning of the Christmas shopping season, with last Friday, the day after Thanksgiving, the busiest shopping day of the year.

Even a recession, it seems, cannot diminish the frenzy of the American consumer and Black Friday, as it is known, demonstrated, with frightening new ferocity, that the most dangerous place on earth is between an American and a bargain. A Wal-Mart employee at a New York store was trampled to death in the stampede, left unattended for crucial moments as shoppers got on with their business.

Leaving aside the death toll of one, early data from the weekend were mildly encouraging. Surprisingly, total sales seemed to be somewhat higher than they were a year ago, before recession hit. Spending at the big stores was up 3 per cent on a year earlier, according to ShopperTrak RCT, a research company that monitors such things, and a quick survey by the National Retail Federation found that American consumers spent an average of $372 per person on Friday, up 7per cent on a year ago.

[TigerLikesRooster]

Would the slogan of Obama regime become "Zero rate, zero jobs, Zero President" ?

It kind of rhymes with "Ein Volk, ein Reich, ein Fuhrer.":-)

[TigerLikesRooster]

Ping!

[ken21]

a decade of low growth like the japanese economy of the 1990s,

then followed by the boomer generation retiremnet en masse,

whew!

will the u.s. be able to re-pay the $ they are borrowing in 2020?

[April Lexington]

This is what happens when you make a guy chairman of the Federal Reserve who has specialized in the Great Depression and other huge downturns. His world view is Great Depression. Its a self fulfilling prophecy!

Next time appoint someone who is an expert on economic booms!!!

[Pelham]

ZIRP.

[Dahoser]

Leaving aside the death toll of one, early data from the weekend were mildly encouraging.

The Black Friday version of, "Apart from that Mrs Lincoln, how did you enjoy the play?"

[dennisw]

Remember that song from the eighties called -— “I’m turning Japanese”

That’s the Feds new policy

[kms61]

Larry Kudlow was on my TV tonight explaining why this isn’t a depression.

We’re doomed.

[Liberty Valance]

lol - indeed.

[wastedyears]

LOL

[Graybeard58]

Remember that song from the eighties called -— “I’m turning Japanese”

"Don't worry, be happy"

[brydic1]

We are so screwed. He has been wrong at ever turn. And the more he blathers on the more wrong he is.

[eyedigress]

I just bought a house and learned we lost 6,000 orders due to rohs compliant problems. Just Damn!

[dalereed]

The way they are printing money 18% interest rates need to return immediatly!!!

[dalereed]

“Larry Kudlow was on my TV tonight explaining why this isn’t a depression.”

It’s not yet but we sure need one!!

[dennisw]

We are so screwed. He has been wrong at ever turn. And the more he blathers on the more wrong he is.

Larry Kudlow has boundless faith in free markets taking care of all problems
We have had a free unregulated market in derivatives/credit default swaps by "too big to fail" firms and this accounts for most of the 8 trillion dollar bailout

[ari-freedom]

This already occurred 20 years ago...in Japan!

[ari-freedom]

yeah, let’s have a bunch of economically illiterate politicians in charge of regulating everything. /sarc

[brydic1]

Believe me, I have been listening to Larry Kudlow for years long before he appeared on CNBC. He has been all over the place on this matter. One day he is cheering on the bailouts then the next day he doesn't believe in them. Today, he had the audacity to state that he knew we were going into a recession in Feb of this year. If so, he lied again and again because he was still denying the recession on CNBC as late as August. I used to have some respect for him but he has become an object of derision with his over-talking almost everyone that appears on the screen with him. CNBC should give him his walking papers.

[Paul R.]

“Even a recession, it seems, cannot diminish the frenzy of the American consumer and Black Friday, as it is known, demonstrated, with frightening new ferocity, that the most dangerous place on earth is between an American and a bargain.”

Of course, in at least 9 out of 10 U.S. towns and neighborhoods, that statement is absolutely not true. So, I didn’t bother reading the rest of the article...