[Willie Green]

At the Sept. 24 meeting, two of the 12 FOMC members -- Gov. Edward Gramlich and Dallas Fed President Robert McTeer -- voted in favor of an immediate rate cut.

Desperation move by the Fed.
We're headed into a deflationary period, just like Japan.

''If we all join hands together and buy a new SUV, everything will be OK,''

Robert McTeer, President, Federal Reserve Bank of Dallas.

[Lurking2Long]

Sure, Willie, sure.

[Southack]

"We're headed into a deflationary period, just like Japan."

No, not at all like Japan.

The problem with Japan's deflation is that it is slowing down their speed of money.

Deflation itself is a good thing. It means that your Dollar buys more. That's why people go to sales, so that they can get more for their Dollar. That's why some people buy used cars, again because they want their Dollar to buy more. That's deflation. It means that things cost less (like computers and cell phones and long distance).

So long as the speed of money doesn't slow down, deflation is a great thing. Everyone wants to be able to buy more with their money, after all.

But what we have to be careful of is to avoid slowing down the speed of money. So long as people are buying houses and cars and Christmas presents and such, then deflation makes us all richer, but if we start hoarding our money then the economy slows down and we become like Japan.

For now, however, Americans are still spending, so we are nowhere near anything like Japan.

[UnBlinkingEye]

Desperation move by the Fed.
We're headed into a deflationary period, just like Japan.

Only 1.25% left, not much of a cushion when the next crisis hits.

Go Globalism!

[RipSawyer]

We must be in a deflationary period because wages in my area seem to be at 1980 levels.

[MonroeDNA]

Willie Green alert!