Insane?
Hardly. “They” are very competent and the “plan” is working to perfect.
Just what the Chinese were worried about and Obama told them not to worry.
We are so screwed.
We are going to look back at 1979 as a GOOD time in History.
Democrats have proven once again, they ONLY know how to run things into the ground.
I couldn’t agree more. Bernacke is nuts. We are in a credit crunch, and his “solution” is essentially to print even more money to chase an ever-declining amount of goods and services. All so that the government can continue spending way beyond its means, and make it easier for the some of the rest of us to continue borrowing and spending beyond their means as well. Brilliant!
Of course the reccession is deepening, we put a left wing terrorist in the oval office and promoted more of this socialist crap. Liberals don’t get it. They think the solution to communism is more communism.
Yep, they are.
HOWEVER.... this might very well cut mortgage rates, because the Fed has also been buying agency paper. By artificially compressing the long end of the curve and agency rates, this might well be the lowest mortgage rates we’ll see for QUITE some time to come in the future.
So if folks are looking to re-fi or buy a house... within the next several months there will be perhaps the lowest rates we’re going to see for a long time to come.
And at some point in the future, rates are going to go up, and there won’t be much the Fed will be able to do about it.
Look at what has happened to the US Dollar in the last hour folks. Inflation is coming!!
The link below may point out big this financial meltdown really is and how long ago it started.
http://www.villagevoice.com/content/printVersion/850296
Kiss your country goodbye along with your freedom and your children and grandchildren’s futures.
Call or email these morons to express your thoughts:
http://www.conservativeusa.org/mega-cong.htm
So, lets see: the Fed prints $$ (out of thin air), then buys Treasuries to keep the interest rates low. I may be oversimplifying here, but am I wrong? If so, what am I missing?
I guess this means that we will soon be paying $150.00 per barrel for oil again.
The problem with this type of action is the general problem that occurs whenever government gets involved in a market. It crowds out the private buyers to the point where they won’t be there anymore.
So, in the end, the Fed will become the only buyer of Treasuries and everyone will sell them to him (or at least as much as they can).
If the Fed threatens to cut off the spigot, then rates will skyrocket. Why? There will be no buyers left.
I think I have it right here (although there are probably other bad possibilities I’m missing). Anyway, we’re going to be screwed sometime in the very near future with these types of actions.
Obama’s $100 a pound beef is going to triple!
Bernanke and Geithner are idiots. Govt-guaranteed mortgages are not the assets that got the banks in trouble. In fact, these GNMA, FNMA, and FHLMC MBS are the type of securities are the type of assets that banks should be buying, but the Fed is driving the prices up to astronomical levels. I know the Fed is trying to drive mortgage rates down, but this is only working for conforming loans. And if people are going delinquent on their mortgages because of job loss, then there is no way they can refi into these lower rates. Instead, there should be massive tax CUTS to stimulate the private economy and create jobs. We have Captain Hazelwood stearing the ship here. Inflation is going to be a HUGE problem. To quote R. Lee Ermey in “The Siege of Firebase Gloria,” “It is my professional military opinion that we are in a deep shit situation here.”
Meanwhile, during all this, our President is appearing on Leno.
It’s a great idea if it works.
It’s just that, by my reading of history, it has never ever worked.