Is The Fed Running Out Of Options ?

[churchill]

CNBC looked like panic stations tonight . Does the fed have any more options up it's sleeve . It looks to me like the Fed knows there is a lot more bad news to come and are trying to nip the problem , but will it work ?? !

[Wrong Turn]

CNBC looked like panic stations tonight . Does the fed have any more options up it's sleeve . It looks to me like the Fed knows there is a lot more bad news to come and are trying to nip the problem , but will it work ?? !

It seems like the Fed will make another cut on interest rates, which may cause the value of the dollar to decline more.

Helicopter Ben may also be increasing the M3 Money Supply.

Rough times are possible. I think they are probable.

But yes, maybe the media is getting a little alarmist. Maybe this is just another alarmist knee-jerk reaction or maybe there is reason for it.

Higher gas prices, inflation on food, slowing GDP growth, stagnant/declining wages, the housing problem, and high per capita debt ratios.

The Americans have made their own bed, and they'll have to sleep in it. (I am an American, btw.)

[Jingthing]

Blood is in the streets. Time to BUY! Seriously. Just when everyone thinks the sky is falling, there is no better time to BUY.

[Prakanong]

Krugman says the fed can turn into Wall Streets Pawnbroker

http://www.nytimes.com/2008/03/10/opinion/10krugman.html

[Captain Chaos]

Blood is in the streets. Time to BUY! Seriously. Just when everyone thinks the sky is falling, there is no better time to BUY.

In principle , I agree ... but not yet my friend, not yet ... still more bad news to come I think ...

... OK, unless you want to get into clever stuff like shorting ... in which case, I'll get me coat ...

CC

[misterman21]

Blood is in the streets. Time to BUY! Seriously. Just when everyone thinks the sky is falling, there is no better time to BUY.

The dollar is history (unfortunatley). Rome is burning my friends. The more pieces of paper ($) the FED pump out the more worthless the pieces of paper you hold are worth - its not rocket science.

American debt 9 trillion dollars and rising that is 9 million millions!!

[Jingthing]

Blood is in the streets. Time to BUY! Seriously. Just when everyone thinks the sky is falling, there is no better time to BUY.

The dollar is history (unfortunatley). Rome is burning my friends. The more pieces of paper ($) the FED pump out the more worthless the pieces of paper you hold are worth - its not rocket science.

American debt 9 trillion dollars and rising that is 9 million millions!!

Right. Like I said. Blood in the streets. What's your point? That the sky is falling? Of course it is.

[misterman21]

Blood is in the streets. Time to BUY! Seriously. Just when everyone thinks the sky is falling, there is no better time to BUY.

The dollar is history (unfortunatley). Rome is burning my friends. The more pieces of paper ($) the FED pump out the more worthless the pieces of paper you hold are worth - its not rocket science.

American debt 9 trillion dollars and rising that is 9 million millions!!

Right. Like I said. Blood in the streets. What's your point? That the sky is falling? Of course it is.

Sorry you dont comprehend my simple points - never mind Hilary will save you and you can sleep sound and live happily ever after!

[Jingthing]

I am betting against worldwide depression. There are two many bright spots in the world and the US is still a key element in the total picture. If the US melts down as some people think, you are indeed predicting a worldwide depression. I don't buy it. BTW, the markets historically do better under democrats, certainly Clinton democrats.

Edited March 11, 2008 by Jingthing

[misterman21]

That would be nice! But most of the indicators point towards the sh*t hitting the fan!

Even small holders of dollars are dumping or praying

[Captain Chaos]

That would be nice! But most of the indicators point towards the sh*t hitting the fan!

Even small holders of dollars are dumping or praying

Well I'm not doing either of those - just keeping a small amount of USD ($40k) as a speculative hedge that the dollar will bounce back sooner or later - but I'm not betting the farm on it

CC

PS. without wishing to get into too far into non-Thailand related stuff, I feel obliged to point out to Jingthing that President Clinton (and I personally hope there isn't another) got the benefit of President George H Bush's economic policies (and I personally hope there isn't another of those either!) - who then ran an inexplicably dumb re-election campaign ...

[misterman21]

$40k or more commonly known today as 40 pieces of gold - could be 20 in not to distant future!

[Captain Chaos]

$40k or more commonly known today as 40 pieces of gold - could be 20 in not to distant future!

Absolutely - but then it could be 60 some time in the slightly more distant future - but it's just a small punt on my part, not my life savings, which would deffo not be in USD at the moment!!!

[Naam]

$40k or more commonly known today as 40 pieces of gold - could be 20 in not to distant future!

Absolutely - but then it could be 60 some time in the slightly more distant future - but it's just a small punt on my part, not my life savings, which would deffo not be in USD at the moment!!!

some of us could be dead "in the slightly more distant future"

[Captain Chaos]

$40k or more commonly known today as 40 pieces of gold - could be 20 in not to distant future!

Absolutely - but then it could be 60 some time in the slightly more distant future - but it's just a small punt on my part, not my life savings, which would deffo not be in USD at the moment!!!

some of us could be dead "in the slightly more distant future"

And your point is ... ?

[cclub75]

I think it's clear.

FED has 2 obsessions :

-support the stock market (the most visible indicator of the state of the economy and the mood)

-delay as much as possible the real valuation of mountains of rotten over leveraged "assets"

With one goal, and only one : hold on. Hold on until the US elections.

I don't believe that the current circus is aimed to reduce the effect of the crisis, nor to cure the effects or the causes of the crisis, nor to soften a hard landing of the economy.

My point : we are beyond economy and management.

The FED's actions are mainly political.

In other words : the FED doesn't try (it can't) to solve the problems. But only to postpone them.

[Jingthing]

The fed is independent of elections. What do you suggest they have to gain by specifically delaying a meltdown until the elections?

[backflip]

"President George H Bush...ran an inexplicably dumb re-election campaign ... "

The "dumb" thing he did was to say "read my lips 'no new taxes'", and then he raised taxes. In the long run, it was the proper thing to do.