Results 1 to 12 of 12

Thread: Fed cuts interest rate a third time

  1. #1

    Fed cuts interest rate a third time

    Let's hear it for recklessness. WOOOOO!!!!!!

    [url]http://www.washingtonpost.com/wp-dyn/content/article/2007/12/11/AR2007121100128.html[/url]

  2. #2
    Veteran
    Join Date
    Dec 2003
    Location
    Somerset, NJ
    Posts
    1,573
    Its anticipated that another .5%-.75% is coming off over the next two meetings.

  3. #3
    When the Fed cuts the rates and the market still goes down, you know its a precarious situation.

  4. #4
    this cut was not nearly as reckless as it could be

    in fact the markets immediately took a downturn after announcement because it believe the fed didn't do enough to prevent a recession

    so all you free marketers who think a recession would be good (or at least necessary), be careful what you wish for

  5. #5
    [QUOTE=bitonti;2259727]
    so all you free marketers who think a recession would be good (or at least necessary), be careful what you wish for[/QUOTE]

    Theoterically speaking, whenever a market has had an asset bubble as we've had since 2002, there are only 2 ways to go:

    1)Inflate the currency to keep the bubble prolonged, only delaying the inevitable downturn that must come.

    2) Go through a recession now to get back to a natural, market-based level of credit.

  6. #6
    [QUOTE=JetsCrazey;2259757]Theoterically speaking, whenever a market has had an asset bubble as we've had since 2002, there are only 2 ways to go:

    1)Inflate the currency to keep the bubble prolonged, only delaying the inevitable downturn that must come.

    2) Go through a recession now to get back to a natural, market-based level of credit.[/QUOTE]

    so yeah i agree... my post was to BB who said it was reckless to cut the rate. actually the statement pretty much guarunteed that your option 2 will come to pass sooner or later, it wasn't a reckless cut at all.

  7. #7
    [QUOTE=bitonti;2259820]so yeah i agree... my post was to BB who said it was reckless to cut the rate. actually the statement pretty much guarunteed that your option 2 will come to pass sooner or later, it wasn't a reckless cut at all.[/QUOTE]


    A recession now would virtually kill any republican chance at the Oval Office next year. The d's would use it like a battle axe (Hillary):yes:

  8. #8
    Jets Insider VIP
    Join Date
    Dec 2005
    Location
    Phoenix, AZ (Jets Stadium Section 246)
    Posts
    35,991
    Recession is a technical term. We don't need 2 consecutive quarters of negative GDP growth in order for people to feel the pain. We could just as easily tread water around 0.5-1% growth for a long stretch and although it wouldn't be a recession it may feel like a recession to many.

    Bill Gross thinks we see Fed Funds drop to 3% over the next 6 months. For once, I don't know if I agree with him because there are other levers at the disposal of the Federal Reserve. Their recent coordination with other banks in Europe, etc. to help relieve tight credit markets is one example.

  9. #9
    [QUOTE=bitonti;2259820]so yeah i agree... my post was to BB who said it was reckless to cut the rate. actually the statement pretty much guarunteed that your option 2 will come to pass sooner or later, it wasn't a reckless cut at all.[/QUOTE]
    If the recession is coming, itís better to fight through it now then delay it and make it worse. The reason we are having a RE blowup is because the rates were artificially low in the first place. Whatís the Fedís solution? Keep cutting rates. Brilliant.

    People will be hurt by the RE market and the overall public will be hurt indirectly as it filters through the economy. But we all lose much more but cutting the rates and increasing the money supply, which causes inflation for everyone and kills the dollar.

  10. #10
    more bubble, more bubble, more bubble....

  11. #11
    [QUOTE=jetstream23;2263938]Recession is a technical term. We don't need 2 consecutive quarters of negative GDP growth in order for people to feel the pain. We could just as easily tread water around 0.5-1% growth for a long stretch and although it wouldn't be a recession it may feel like a recession to many.

    [/QUOTE]

    Is that why we got through the last 5 quarters of Clintonomics: .9% growth avg./quarter b/c of 3 quarters of negative growth? Funny, I don't recall anyone talking about recession back then! I wonder why?

  12. #12
    Jets Insider VIP
    Join Date
    Feb 2006
    Location
    Van down by the river
    Posts
    22,792
    [QUOTE=asuusa;2269737]Is that why we got through the last 5 quarters of Clintonomics: .9% growth avg./quarter b/c of 3 quarters of negative growth? Funny, I don't recall anyone talking about recession back then! I wonder why?[/QUOTE]


    Because Clinton controlled everything back then. Even the Senate!

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Follow Us