...until today, when regulators are heavily speaking of allowing them to free up $10 billion in assets.
But hey! What the fuck do I know?!
But hey! What the fuck do I know?!
fed to cut rates AGAIN
- Thread starter Briansol
- Start date
- Replies 77
- Views 3K
We may earn a small commission from affiliate links and paid advertisements. Terms
cutting interest rates doesn't do shit for the economy.
HeLLO! they've done it 5 times in the past 6 months, and we're in even more shit now than we were back then! look at it work.
All it's done is make my paycheck go less.
Everything costs more. I still make the same money.
Basically, everyone in america cut a pay cut by the fed.
and you think this is good?
and you're in college????????????
HeLLO! they've done it 5 times in the past 6 months, and we're in even more shit now than we were back then! look at it work.
All it's done is make my paycheck go less.
Everything costs more. I still make the same money.
Basically, everyone in america cut a pay cut by the fed.
and you think this is good?
and you're in college????????????
LOL B, you're trying to fucking explain interest rate cuts as being synonymous with inflation, which is wrong. Yes, I know this because I've taken basic economic courses.
You're also trying to explain interest rate cuts as "cutting the value of the dollar" which is also wrong.
Core inflation, which is inflation less the cost of energy, was not alarmingly high when it was reported this month. .03 inflation is still very low and is below the generally accepted 3.5% annual inflation. When you add in energy costs, we're up to 4% inflation.
Nothing has happened in the market since interest rate cuts? Thats funny... because certain sectors are beginning to bounce back and today we just saw the second rally of the stock market in a week, but nothing is happening with the economy.
I'm sorry to break this to you, but your gas prices aren't the only thing driving the market. Yes, its a significant part, but just because the cost of a barrel of crude is up, doesn't mean that the rest of the market can't thrive.
You're also trying to explain interest rate cuts as "cutting the value of the dollar" which is also wrong.
Core inflation, which is inflation less the cost of energy, was not alarmingly high when it was reported this month. .03 inflation is still very low and is below the generally accepted 3.5% annual inflation. When you add in energy costs, we're up to 4% inflation.
Nothing has happened in the market since interest rate cuts? Thats funny... because certain sectors are beginning to bounce back and today we just saw the second rally of the stock market in a week, but nothing is happening with the economy.
I'm sorry to break this to you, but your gas prices aren't the only thing driving the market. Yes, its a significant part, but just because the cost of a barrel of crude is up, doesn't mean that the rest of the market can't thrive.
Did you not notice the prices slowly being hiked over the past 2 years?
They always raise the price, until there is chatters of complaints, and they lower it to levels that are higher than the starting price, and then they start the process over. When people thought we had relief, when the price dropped back down to $2.25 I laughed and said that we would be over $3.00 soon.
...and its funny that you think a barrel of crude is the same price it was 2 years ago, yet you're calling me out on my interest rate knowledge...
newsflash B, oil just hit an ALL TIME, INFLATION-ADJUSTED HIGH. That little calculation they do... thats called "inflation-adjusted", factors inflation out of the equation when calculating prices... It was all over the news, you should know this stuff, its basic.
I believe the inflation-adjusted price was $107.xx or so and we've seen up to $112.xx.
They always raise the price, until there is chatters of complaints, and they lower it to levels that are higher than the starting price, and then they start the process over. When people thought we had relief, when the price dropped back down to $2.25 I laughed and said that we would be over $3.00 soon.
...and its funny that you think a barrel of crude is the same price it was 2 years ago, yet you're calling me out on my interest rate knowledge...
newsflash B, oil just hit an ALL TIME, INFLATION-ADJUSTED HIGH. That little calculation they do... thats called "inflation-adjusted", factors inflation out of the equation when calculating prices... It was all over the news, you should know this stuff, its basic.
I believe the inflation-adjusted price was $107.xx or so and we've seen up to $112.xx.
drbelanger73
Beer is good for you.
Standard of Living
I lived in Iceland for about two years and Sardinia (Italy) for about three. If you think the Euro is worth a lot try the Icelandic or Swedish/Norweigan kronur. Holy crap...
What I was going to say though is this: We still have one of the highest standards of living in the world. This could be argued that our standards cause a lot of our problems but hey...
I europe houses are smaller. Cars are smaller; let me tell ya a panda or a fiat doesn't have that Honda potential... Granted you can get some real monster cars over there but it is not cheap. Food is more expensive. Gas is WAY more expensive. Electronics are more expensive. Taxes are MUCH higher.
Italy has suffered greatly under the euro, many many Italians would rather have the lire back due to massive inflation. Also their socialized medicine is a nightmare. Your family has to bring you your clothes and your sheets and most of your food, otherwise you get just about nothing. In jail, forget about it. A couple guys from my boat got locked up and their LPO (leading petty officer for you non navy types) had do go and bring them stuff to get through the weekend. No food, just water. Prison may be different, nobody on the boat messed up that bad...
The American way of life though is a precarious one. We are free to do whatever we want. Including starve, go bankrupt and generally fall apart. We refuse to pay more into the common system for a return because we cling to the belief that less taxes paid to the state equals more freedom. The capitalistic perogative is supposed to provide the vehical out of all woes. Make and investment, play the market, flip a house. We are a nation of scammers and seat of the pantsers.
Interest rates and the price of oil are not going to be the cause of what brings us down, but they will sure help push down the house of cards...
Notice i did not mention Iceland. One there are only 300k people over there and they can do things we can't. Second they got rated the #1 country to live in. My wife is Icelandic and I'm gonna scam over there when the going gets bad, I just don't want the whole world to follow us
.
course they have their own set of problems but that would be another post...
I lived in Iceland for about two years and Sardinia (Italy) for about three. If you think the Euro is worth a lot try the Icelandic or Swedish/Norweigan kronur. Holy crap...
What I was going to say though is this: We still have one of the highest standards of living in the world. This could be argued that our standards cause a lot of our problems but hey...
I europe houses are smaller. Cars are smaller; let me tell ya a panda or a fiat doesn't have that Honda potential... Granted you can get some real monster cars over there but it is not cheap. Food is more expensive. Gas is WAY more expensive. Electronics are more expensive. Taxes are MUCH higher.
Italy has suffered greatly under the euro, many many Italians would rather have the lire back due to massive inflation. Also their socialized medicine is a nightmare. Your family has to bring you your clothes and your sheets and most of your food, otherwise you get just about nothing. In jail, forget about it. A couple guys from my boat got locked up and their LPO (leading petty officer for you non navy types) had do go and bring them stuff to get through the weekend. No food, just water. Prison may be different, nobody on the boat messed up that bad...
The American way of life though is a precarious one. We are free to do whatever we want. Including starve, go bankrupt and generally fall apart. We refuse to pay more into the common system for a return because we cling to the belief that less taxes paid to the state equals more freedom. The capitalistic perogative is supposed to provide the vehical out of all woes. Make and investment, play the market, flip a house. We are a nation of scammers and seat of the pantsers.
Interest rates and the price of oil are not going to be the cause of what brings us down, but they will sure help push down the house of cards...
Notice i did not mention Iceland. One there are only 300k people over there and they can do things we can't. Second they got rated the #1 country to live in. My wife is Icelandic and I'm gonna scam over there when the going gets bad, I just don't want the whole world to follow us
.course they have their own set of problems but that would be another post...
drbelanger73
Beer is good for you.
As for hiking oil prices...
There is a massive alternative energy movement in place now. It has moved out of the curiosity phase and is moving into the corporate profit phase. The oil company mega profits are limited and they know this. I'm sure they are just making the last of the big bucks; before the spend it all to buy out the next big thing.
I told this tree hugger (im an ex hugger i just grew up) that i had an xb and an integra and they made some comment that they were great for the environment. Then i mentioned how i wanted to supercharge my xb and that i wanted to buy this big turbo set up for my integra. I got the dirtiest look... It was great...
There is a massive alternative energy movement in place now. It has moved out of the curiosity phase and is moving into the corporate profit phase. The oil company mega profits are limited and they know this. I'm sure they are just making the last of the big bucks; before the spend it all to buy out the next big thing.
I told this tree hugger (im an ex hugger i just grew up) that i had an xb and an integra and they made some comment that they were great for the environment. Then i mentioned how i wanted to supercharge my xb and that i wanted to buy this big turbo set up for my integra. I got the dirtiest look... It was great...
Most of the alternatives for cars in this country are garbage. Corn based ethanol is a joke, for every 1 unit of disel used to make it yeilds 1.3 units of ethanol. Hybreds are impractical for the average consumer. High maintanance costs and 100k miles on the battery before a very costly replacement. No such thing as a solar car. Hydrogen cars are still decades away from a possible mass market. Also as far as ethanol goes South America does it right they use sugar cane and for every 1 unit of diesel used to produce they make 8 units of ethanol. The future of oil is high prices and shale oil. Also a way has been found to convert coal into oil.
Canadian tar sands are finally being used but it costs $12/barrel compared to the Saudis $1/barrel production costs.
There's oil left, but there's no cheap oil when the Saudis are going to price hike and stick it to the "Westerners" when they can, but hey we fucked them over for years and then allowed ourselves to become too dependent on oil.
I would absolutely agree that its the American way of life and lifestyle that causes a large majority of our problems, but we want the freedom to act like a bunch of assholes, drives our 8mpg SUVs or sports cars, eat our McDonalds, and smoke our ciggs. I say, "we" but I don't mean everyone, but collectively we have this sort of mentality.
There's oil left, but there's no cheap oil when the Saudis are going to price hike and stick it to the "Westerners" when they can, but hey we fucked them over for years and then allowed ourselves to become too dependent on oil.
I would absolutely agree that its the American way of life and lifestyle that causes a large majority of our problems, but we want the freedom to act like a bunch of assholes, drives our 8mpg SUVs or sports cars, eat our McDonalds, and smoke our ciggs. I say, "we" but I don't mean everyone, but collectively we have this sort of mentality.
yeah, but they have to be careful. if they overproduce, supply will increase and prices drop. they need to find a market equilibrium. and with changing values to the dollar, that is nearly impossible.
remember that if you're thinking about voting obama or hillary.
drbelanger73
Beer is good for you.
Garbage or not they are out there and the consumer believes in them. How shrewd is the average american consumer? This means there is a profit to be made. In fact i would not be surprised to see them remain garbage. How many decades ago did we (America) invent the train? What do our trains look like now? Course this has a little to do with the auto industry.
As for socialized medicine it only works in small areas, perhaps if each town managed thier own system with perhaps a universal guidline. Iceland has the some of the best medicine in the world. My father in law nearly dropped dead of a heart attack years back, got transported, treated, and a pace maker and paid zip. My wife had our daughter in Iceland, spent five days in the hospital, had a visiting midwife once a week for a month and once a month for six months and we paid NOTHING. The care is good to, not some fly by night crap. Thing is it only works in countries with about 300k people like Iceland.
Iceland is screwed anyway. I go home for lunch and my wife tells me last week it was 65 kronur to the dollar, this week it is 76. Nobody is taking loans and the whole economy is going to shit. I suppose at least the seafood is still good...
Excerpt from the Wallstreet Journal
March 19, 2008
Fannie and Freddie's regulator unveiled a reduction of the capital the firms must hold to 20% from 30% previously. Ofheo said the move could provide up to $200 billion in immediate liquidity to the troubled mortgage-backed securities market. "We believe they can play an even more positive role in providing the stability and liquidity the markets need right now," Ofheo Director James Lockhart said in a statement.
Treasury Secretary Paulson lauded the move. "Additional capital will enable the companies to help more homeowners and will strengthen the underlying fundamentals of the mortgage market," he said.
***MOTHER FUCKER, I MUST BE A FORTUNE TELLER
I have to look up the new prices, those are a few years old now and were figures given in Matthew Yeomans' book Oil.
B, for someone who says interest rate cuts don't work, I seem to remember having seen you and quite a few other members on this board talking about refinancing at lower rates.
I wonder what helped those rates come down a bit? Interest rate cuts may affect short term lending between banks, but there's a correlation between short term interest rates and long term rates.
The play by the Fed to let Fannie Mae and Freddie Mac buy an additional $200 billion in mortgage securities is a risk, but a risk that should directly affect mortgage rates. Hopefully this will help sure up the credit market a bit, stop the bleeding in the housing sector, and help people see some equity come back into their homes, prompting some spending and growth.
I'd say that the Fed is doing just about everything it can right now.
p.s. Gold down $58.50 yesterday? Whats that all about?
I wonder what helped those rates come down a bit? Interest rate cuts may affect short term lending between banks, but there's a correlation between short term interest rates and long term rates.
The play by the Fed to let Fannie Mae and Freddie Mac buy an additional $200 billion in mortgage securities is a risk, but a risk that should directly affect mortgage rates. Hopefully this will help sure up the credit market a bit, stop the bleeding in the housing sector, and help people see some equity come back into their homes, prompting some spending and growth.
I'd say that the Fed is doing just about everything it can right now.
p.s. Gold down $58.50 yesterday? Whats that all about?
you're a shitty fortune teller cause you said 10 bil vs 200bil
and it being all over the news on the 18th doesn't help your cause much either
the housing market is overinflated
this move will just drag it on even further
gotta keep that house of cards up
and it being all over the news on the 18th doesn't help your cause much either
the housing market is overinflated
this move will just drag it on even further
gotta keep that house of cards up
They reduced the requirement by 10%, which allowed them to actually leverage $200billion. Up until that point it was all speculation about how much money would be able to be leveraged.
Point was that you were a bag of dicks with your head up your ass, when I threw information out there about Fannie Mae and then two days later, the regulations are changed and its an entirely new ball game. I don't care if it was all over the news, clearly you didn't understand the significance and for most people the knowledge would have went right over there head. Its all over the Wall Street Journal and every financial analyst show for good reason, of course this information wasn't going to go unseen and of course I wasn't the first person to think up the idea.
Another funny excerpt from the WSJ today, "Yields in the mortgage-bond market have dropped in recent days, signaling the Fed's actions are working." "To combat the fear in the markets, the Fed created a new $200 billion lending facility, allowed brokers, not just banks, to borrow funds and financially backed the Bear Stearns sale. Those actions, coupled with Tuesday's interest-rate cut helped to reverse the climb in mortgage-bond yields. That brought buyers back into the market." "Then yesterday, the regulator for Fannie and Freddie agreed to reduce the amount of capital the firms' have to hold, allowing them to buy or guarantee more mortgages. At the same time Fannie and Freddie agreed to raise more capital, effectively allowing them to buy or guarantee still more bonds. Finally, the board that oversees the nation's Federal Home Loan Banks is close to voting on a plan to raise the amount of mortgage bonds the banks can hold against capital." "The restoration of calm in the mortgage-bond market is likely to have a broad, salutary effect. Lower bond yields translate into lower borrowing costs for would-be home buyers and home-owners looking to refinance."
...gotta keep that house of cards up.
Oh yeah, Visa up 28% after the first day.
Last edited:
a bag of dicks with my head up my ass?
what kind of fucking retard are you?
grow the fuck up
what kind of fucking retard are you?
grow the fuck up
