Fed cuts rate to nearly 0% - Average American EFF'd even harder

Ha Ha Ha · 12-16-2008, 03:30 PM

Man, the Fed is out of control. So now banks can horde cash with impunity and we'll get to pay for it in the long run. Seriously. WTF is going on?

JetsCrazey · 12-16-2008, 04:27 PM

Why won't the Fed disclose what it's done with $2 trillion of our money? Better yet, why are so few people in this country demanding an answer to this question?

The Fed has usurped the Government and rule by the people, and not one in a million in this country cares.

We need to be honest with ourselves and admit that this is a country of brainless people who have been brainwashed into a state of sleep by decades of easy credit and spending money they don't have.
The more we delude ourselves the harder the pain will be.

It starts with voting out the Democrats and Republicans who have sold their souls for a dollar, as well as the idiots who vote for these 2 establishment parties every election.

BrooklynBound · 12-16-2008, 07:13 PM

I predict this thread will go unnoticed because people don't want to face the reality that the Fed is harming them.

jefethegreat · 12-16-2008, 07:25 PM

[QUOTE=BrooklynBound;2915787]I predict this thread will go unnoticed because people don't want to face the reality that the Fed is harming them.[/QUOTE]

God I know, its like we're telling everyone Santa's imaginary for the first time... no one wants to hear it.

Ha Ha Ha · 12-16-2008, 07:33 PM

I really think giving every American $500,000 in cold hard cash would stimulate the economy better than this.

I mean, whats the point of giving the banks 0% interest rates if they won't give anyone loans.....what's wrong with these people?!?

Its amazing that we can do NOTHING about this...NOTHING....

BrooklynBound · 12-16-2008, 07:37 PM

[QUOTE=Vilma;2915809]I really think giving every American $500,000 in cold hard cash would stimulate the economy better than this.

I mean, whats the point of giving the banks 0% interest rates if they won't give anyone loans.....what's wrong with these people?!?

Its amazing that we can do NOTHING about this...NOTHING....[/QUOTE]
It's corporate welfare, plain and simple. I've got to give the Fed credit, they may not be competent at much, but they do an amazing job at pulling the wool over people's eyes.

CTM · 12-16-2008, 09:21 PM

Criminals...

I wish sackdance would cast them all to hell..

So, does anyone have any ideas on what to do with 200k sitting in MM accounts right now?

jefethegreat · 12-16-2008, 09:33 PM

[QUOTE=CTM;2915990]Criminals...

I wish sackdance would cast them all to hell..

So, does anyone have any ideas on what to do with 200k sitting in MM accounts right now?[/QUOTE]

Put your money in The Perth Mint. Its a mint in Australia backed by the West Australian Government as the only mint in the world that has actual physical precious metals to back every note they issue. Very safe and gold is about to skyrocket so its a good investment if you don't want to lose all your wealth via hyperinflation or have the U.S. government confiscate your gold like in the 1930s.
[url]http://www.perthmint.com.au/[/url]

CTM · 12-17-2008, 08:55 AM

How can hyperinflation happen in this climate? If it is coming, it seems like real estate is the best buy right now???

woodside · 12-17-2008, 08:59 AM

Tell you what if it drives mortgage rates down to 4.5% I am going to be jumping for joy when I refinance

Ha Ha Ha · 12-17-2008, 09:00 AM

[QUOTE=CTM;2915990]Criminals...

I wish sackdance would cast them all to hell..

So, does anyone have any ideas on what to do with 200k sitting in MM accounts right now?[/QUOTE]

Convert that cash into Euro's - Dollar will be worthless in the near future.

JetsCrazey · 12-17-2008, 11:53 AM

gold and gold stocks of mining companies that have gold in the ground are the best way to protect yourself.

jetstream23 · 12-17-2008, 12:36 PM

[QUOTE=jefethegreat;2916005]Put your money in The Perth Mint. Its a mint in Australia backed by the West Australian Government as the only mint in the world that has actual physical precious metals to back every note they issue. Very safe and gold is about to skyrocket so its a good investment if you don't want to lose all your wealth via hyperinflation or have the U.S. government confiscate your gold like in the 1930s.
[url]http://www.perthmint.com.au/[/url][/QUOTE]

I've been buying GLD for months. It is the ETF that holds physical gold bullion.

[url]http://finance.yahoo.com/q?s=gld[/url]

jetstream23 · 12-17-2008, 12:37 PM

[QUOTE=JetsCrazey;2916958]gold and gold stocks of mining companies that have gold in the ground are the best way to protect yourself.[/QUOTE]

Some of those miners have skyrocketed back the past month...up 50%, 70%, etc. I think people are starting to see what is coming. It's not a question of if but when inflation starts to rear its head....6 months? 1 year?

JetsCrazey · 12-17-2008, 01:01 PM

[QUOTE=jetstream23;2917060]Some of those miners have skyrocketed back the past month...up 50%, 70%, etc. I think people are starting to see what is coming. It's not a question of if but when inflation starts to rear its head....6 months? 1 year?[/QUOTE]

when it happens, it will be historic.
you don't create $8.8 trillion and dont have unintended consequences

CTM · 12-17-2008, 01:26 PM

[QUOTE=JetsCrazey;2917099]when it happens, it will be historic.
you don't create $8.8 trillion and dont have unintended consequences[/QUOTE]

Question though, we've also lost that much in paper wealth with the drop of home and stock prices. Should that new inflation just get us back to where we are?

What's the case for hyperinflation and why would the fed and bankers want that to happen considering how much debt we owe privately and publicly? If Hyperinflation occurs, my 2800 a month mortgage payment is going to be nothing..

JetsCrazey · 12-17-2008, 01:39 PM

[QUOTE=CTM;2917140]Question though, we've also lost that much in paper wealth with the drop of home and stock prices. Should that new inflation just get us back to where we are?

What's the case for hyperinflation and why would the fed and bankers want that to happen considering how much debt we owe privately and publicly? If Hyperinflation occurs, my 2800 a month mortgage payment is going to be nothing..[/QUOTE]

[IMG]http://research.stlouisfed.org/fred2/data/BASE_Max_630_378.png[/IMG]

Consider the effects of this when the money multiplier effect comes back into play (aka banks start to lend out at fractional reserves)

This is NOT a wash, that is a lie told by establishment academics. It doesn't work that way in real life.

Why would the Fed and the bankers want it to happen? Because the end of the dollar era opens the door for international government. This is the realization of Daddy Bush's "New World Order"

jetstream23 · 12-17-2008, 01:40 PM

[QUOTE=CTM;2917140]Question though, we've also lost that much in paper wealth with the drop of home and stock prices. Should that new inflation just get us back to where we are?

What's the case for hyperinflation and why would the fed and bankers want that to happen considering how much debt we owe privately and publicly? If Hyperinflation occurs, my 2800 a month mortgage payment is going to be nothing..[/QUOTE]

The problem is that the Fed and Treasury can't really target inflation in one particular area such as home values. They'd love to inflate home prices while keeping inflation at bay in other areas such as fuel, food, consumer goods, etc. Not really possible though.

No one wants hyper inflation but it may become a consequence if they don't take their foot off the accelerator at the right time. In my opinion, they will be late simply because they don't want to be early. In other words, the Fed will wait until they are sure growth is back and price stability has returned in a variety of asset classes before taking away all the easing that has been done. As bad as inflation is, deflation is even worse...believe it or not. History shows that combatting deflation is much tougher than calming inflation. Deflation is very self-feeding in that as prices go lower fewer people buy because they believe prices are going even lower...so they wait and without demand prices go even lower.

These are unprecedented times, we all know that. I think the key, as always, is to be safe and diversified. Hedge your bets, look for safe returns and protect your portfolios. This is easier than a lot of people think and we can all do it in our portfolios and in our everyday lives. If you have a long commute and drive an SUV then you're obviously vulnerable to high gas prices. So, you can buy some assets (physical commodities like the USO or an ETF that follows the oil companies) such that you manage your risk a little bit. If you fear inflation, buy some gold or other physical commodities or maybe take a position against the US Dollar.

When the market got killed in October I started to buy safe, dividend paying stocks at good prices. Not the financials because they were/are a crapshoot but companies that have solid franchises, continuing demand and look pretty safe like Altria, Phillip Morris, Verizon, McDonald's, etc. Even in a bad economy people will continue to smoke, eat $5 meals and probably won't disconnect their cellphones. At least that's my view and the share prices had come down a lot, dividends appear safe. However, at the same time I'm buying some US stocks, I'm not doing it "naked". I have also bought an ETF that increases in value as the broad stock market goes down. It's an ultrashort fund, SDS, that basically increases 1.5 to 2% for every 1% the S&P 500 goes down. It limits my upside with stocks I buy but also protects on the downside. As I look at it, I'm positioned so that I can collect good dividends, participate in increases in stock prices for the companies I've bought, but have insurance against any more major corrections if the S&P 500 decides to drop 30 or 40 points in a day again.

JetsCrazey · 12-17-2008, 01:52 PM

Keep in mind FDR ended the Great Depression by devaluing the dollar by changing the price of gold from $20/oz to $35/oz.
While the govt no longer fixes the price of gold, they can still use gold as a tool fur curing deflation and raising housing prices by reintroducing a Federal Reserve gold certificate ratio.

Ha Ha Ha · 12-17-2008, 01:55 PM

[QUOTE=JetsCrazey;2917201]Keep in mind FDR ended the Great Depression by devaluing the dollar by changing the price of gold from $20/oz to $35/oz.
While the govt no longer fixes the price of gold, they can still use gold as a tool fur curing deflation and raising housing prices by reintroducing a Federal Reserve gold certificate ratio.[/QUOTE]

I respectfully disagree.

World War II ended the Great Depression, you know why?

It created millions of jobs and increased labor output, EXACTLY what we need to navigate out of this mess.

12-16-2008, 03:30 PM	#1
Ha Ha Ha Board Moderator Join Date: Sep 2005 Location: Brooklyn Heights Posts: 2,459	Fed cuts rate to nearly 0% - Average American EFF'd even harder Man, the Fed is out of control. So now banks can horde cash with impunity and we'll get to pay for it in the long run. Seriously. WTF is going on?

12-17-2008, 12:36 PM	#13
jetstream23 recovering from turf toe Jets Insider VIP Join Date: Dec 2005 Location: Phoenix, AZ (New Jets Stadium Section 246) Posts: 31,562	[QUOTE=jefethegreat;2916005]Put your money in The Perth Mint. Its a mint in Australia backed by the West Australian Government as the only mint in the world that has actual physical precious metals to back every note they issue. Very safe and gold is about to skyrocket so its a good investment if you don't want to lose all your wealth via hyperinflation or have the U.S. government confiscate your gold like in the 1930s. [url]http://www.perthmint.com.au/[/url][/QUOTE] I've been buying GLD for months. It is the ETF that holds physical gold bullion. [url]http://finance.yahoo.com/q?s=gld[/url] Last edited by jetstream23; 12-17-2008 at 12:38 PM.

12-17-2008, 01:40 PM	#18
jetstream23 recovering from turf toe Jets Insider VIP Join Date: Dec 2005 Location: Phoenix, AZ (New Jets Stadium Section 246) Posts: 31,562	[QUOTE=CTM;2917140]Question though, we've also lost that much in paper wealth with the drop of home and stock prices. Should that new inflation just get us back to where we are? What's the case for hyperinflation and why would the fed and bankers want that to happen considering how much debt we owe privately and publicly? If Hyperinflation occurs, my 2800 a month mortgage payment is going to be nothing..[/QUOTE] The problem is that the Fed and Treasury can't really target inflation in one particular area such as home values. They'd love to inflate home prices while keeping inflation at bay in other areas such as fuel, food, consumer goods, etc. Not really possible though. No one wants hyper inflation but it may become a consequence if they don't take their foot off the accelerator at the right time. In my opinion, they will be late simply because they don't want to be early. In other words, the Fed will wait until they are sure growth is back and price stability has returned in a variety of asset classes before taking away all the easing that has been done. As bad as inflation is, deflation is even worse...believe it or not. History shows that combatting deflation is much tougher than calming inflation. Deflation is very self-feeding in that as prices go lower fewer people buy because they believe prices are going even lower...so they wait and without demand prices go even lower. These are unprecedented times, we all know that. I think the key, as always, is to be safe and diversified. Hedge your bets, look for safe returns and protect your portfolios. This is easier than a lot of people think and we can all do it in our portfolios and in our everyday lives. If you have a long commute and drive an SUV then you're obviously vulnerable to high gas prices. So, you can buy some assets (physical commodities like the USO or an ETF that follows the oil companies) such that you manage your risk a little bit. If you fear inflation, buy some gold or other physical commodities or maybe take a position against the US Dollar. When the market got killed in October I started to buy safe, dividend paying stocks at good prices. Not the financials because they were/are a crapshoot but companies that have solid franchises, continuing demand and look pretty safe like Altria, Phillip Morris, Verizon, McDonald's, etc. Even in a bad economy people will continue to smoke, eat $5 meals and probably won't disconnect their cellphones. At least that's my view and the share prices had come down a lot, dividends appear safe. However, at the same time I'm buying some US stocks, I'm not doing it "naked". I have also bought an ETF that increases in value as the broad stock market goes down. It's an ultrashort fund, SDS, that basically increases 1.5 to 2% for every 1% the S&P 500 goes down. It limits my upside with stocks I buy but also protects on the downside. As I look at it, I'm positioned so that I can collect good dividends, participate in increases in stock prices for the companies I've bought, but have insurance against any more major corrections if the S&P 500 decides to drop 30 or 40 points in a day again. Last edited by jetstream23; 12-17-2008 at 01:44 PM.

12-16-2008, 04:27 PM	#2
JetsCrazey All League Join Date: Aug 2005 Posts: 2,664	Why won't the Fed disclose what it's done with $2 trillion of our money? Better yet, why are so few people in this country demanding an answer to this question? The Fed has usurped the Government and rule by the people, and not one in a million in this country cares. We need to be honest with ourselves and admit that this is a country of brainless people who have been brainwashed into a state of sleep by decades of easy credit and spending money they don't have. The more we delude ourselves the harder the pain will be. It starts with voting out the Democrats and Republicans who have sold their souls for a dollar, as well as the idiots who vote for these 2 establishment parties every election.

12-16-2008, 07:13 PM	#3
BrooklynBound Hall Of Fame Join Date: Jan 2005 Posts: 15,550	I predict this thread will go unnoticed because people don't want to face the reality that the Fed is harming them.

12-16-2008, 07:25 PM	#4
jefethegreat lovin' America Rookie Join Date: Aug 2005 Posts: 848	[QUOTE=BrooklynBound;2915787]I predict this thread will go unnoticed because people don't want to face the reality that the Fed is harming them.[/QUOTE] God I know, its like we're telling everyone Santa's imaginary for the first time... no one wants to hear it.

12-16-2008, 07:33 PM	#5
Ha Ha Ha Board Moderator Join Date: Sep 2005 Location: Brooklyn Heights Posts: 2,459	I really think giving every American $500,000 in cold hard cash would stimulate the economy better than this. I mean, whats the point of giving the banks 0% interest rates if they won't give anyone loans.....what's wrong with these people?!? Its amazing that we can do NOTHING about this...NOTHING....

12-16-2008, 07:37 PM	#6
BrooklynBound Hall Of Fame Join Date: Jan 2005 Posts: 15,550	[QUOTE=Vilma;2915809]I really think giving every American $500,000 in cold hard cash would stimulate the economy better than this. I mean, whats the point of giving the banks 0% interest rates if they won't give anyone loans.....what's wrong with these people?!? Its amazing that we can do NOTHING about this...NOTHING....[/QUOTE] It's corporate welfare, plain and simple. I've got to give the Fed credit, they may not be competent at much, but they do an amazing job at pulling the wool over people's eyes.

12-16-2008, 09:21 PM	#7
CTM Hall Of Fame Join Date: Jan 2006 Location: Not bababooey and I resent the implication Posts: 21,029	Criminals... I wish sackdance would cast them all to hell.. So, does anyone have any ideas on what to do with 200k sitting in MM accounts right now?

12-16-2008, 09:33 PM	#8
jefethegreat lovin' America Rookie Join Date: Aug 2005 Posts: 848	[QUOTE=CTM;2915990]Criminals... I wish sackdance would cast them all to hell.. So, does anyone have any ideas on what to do with 200k sitting in MM accounts right now?[/QUOTE] Put your money in The Perth Mint. Its a mint in Australia backed by the West Australian Government as the only mint in the world that has actual physical precious metals to back every note they issue. Very safe and gold is about to skyrocket so its a good investment if you don't want to lose all your wealth via hyperinflation or have the U.S. government confiscate your gold like in the 1930s. [url]http://www.perthmint.com.au/[/url]

12-17-2008, 08:55 AM	#9
CTM Hall Of Fame Join Date: Jan 2006 Location: Not bababooey and I resent the implication Posts: 21,029	How can hyperinflation happen in this climate? If it is coming, it seems like real estate is the best buy right now???

12-17-2008, 08:59 AM	#10
woodside Hall Of Fame Join Date: Jan 2006 Posts: 5,191	Tell you what if it drives mortgage rates down to 4.5% I am going to be jumping for joy when I refinance

12-17-2008, 09:00 AM	#11
Ha Ha Ha Board Moderator Join Date: Sep 2005 Location: Brooklyn Heights Posts: 2,459	[QUOTE=CTM;2915990]Criminals... I wish sackdance would cast them all to hell.. So, does anyone have any ideas on what to do with 200k sitting in MM accounts right now?[/QUOTE] Convert that cash into Euro's - Dollar will be worthless in the near future.

12-17-2008, 11:53 AM	#12
JetsCrazey All League Join Date: Aug 2005 Posts: 2,664	gold and gold stocks of mining companies that have gold in the ground are the best way to protect yourself.

12-17-2008, 12:37 PM	#14
jetstream23 recovering from turf toe Jets Insider VIP Join Date: Dec 2005 Location: Phoenix, AZ (New Jets Stadium Section 246) Posts: 31,562	[QUOTE=JetsCrazey;2916958]gold and gold stocks of mining companies that have gold in the ground are the best way to protect yourself.[/QUOTE] Some of those miners have skyrocketed back the past month...up 50%, 70%, etc. I think people are starting to see what is coming. It's not a question of if but when inflation starts to rear its head....6 months? 1 year?

12-17-2008, 01:01 PM	#15
JetsCrazey All League Join Date: Aug 2005 Posts: 2,664	[QUOTE=jetstream23;2917060]Some of those miners have skyrocketed back the past month...up 50%, 70%, etc. I think people are starting to see what is coming. It's not a question of if but when inflation starts to rear its head....6 months? 1 year?[/QUOTE] when it happens, it will be historic. you don't create $8.8 trillion and dont have unintended consequences

12-17-2008, 01:26 PM	#16
CTM Hall Of Fame Join Date: Jan 2006 Location: Not bababooey and I resent the implication Posts: 21,029	[QUOTE=JetsCrazey;2917099]when it happens, it will be historic. you don't create $8.8 trillion and dont have unintended consequences[/QUOTE] Question though, we've also lost that much in paper wealth with the drop of home and stock prices. Should that new inflation just get us back to where we are? What's the case for hyperinflation and why would the fed and bankers want that to happen considering how much debt we owe privately and publicly? If Hyperinflation occurs, my 2800 a month mortgage payment is going to be nothing..

12-17-2008, 01:39 PM	#17
JetsCrazey All League Join Date: Aug 2005 Posts: 2,664	[QUOTE=CTM;2917140]Question though, we've also lost that much in paper wealth with the drop of home and stock prices. Should that new inflation just get us back to where we are? What's the case for hyperinflation and why would the fed and bankers want that to happen considering how much debt we owe privately and publicly? If Hyperinflation occurs, my 2800 a month mortgage payment is going to be nothing..[/QUOTE] [IMG]http://research.stlouisfed.org/fred2/data/BASE_Max_630_378.png[/IMG] Consider the effects of this when the money multiplier effect comes back into play (aka banks start to lend out at fractional reserves) This is NOT a wash, that is a lie told by establishment academics. It doesn't work that way in real life. Why would the Fed and the bankers want it to happen? Because the end of the dollar era opens the door for international government. This is the realization of Daddy Bush's "New World Order"

12-17-2008, 01:52 PM	#19
JetsCrazey All League Join Date: Aug 2005 Posts: 2,664	Keep in mind FDR ended the Great Depression by devaluing the dollar by changing the price of gold from $20/oz to $35/oz. While the govt no longer fixes the price of gold, they can still use gold as a tool fur curing deflation and raising housing prices by reintroducing a Federal Reserve gold certificate ratio.

12-17-2008, 01:55 PM	#20
Ha Ha Ha Board Moderator Join Date: Sep 2005 Location: Brooklyn Heights Posts: 2,459	[QUOTE=JetsCrazey;2917201]Keep in mind FDR ended the Great Depression by devaluing the dollar by changing the price of gold from $20/oz to $35/oz. While the govt no longer fixes the price of gold, they can still use gold as a tool fur curing deflation and raising housing prices by reintroducing a Federal Reserve gold certificate ratio.[/QUOTE] I respectfully disagree. World War II ended the Great Depression, you know why? It created millions of jobs and increased labor output, EXACTLY what we need to navigate out of this mess.