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.50 on the funds rate and .50 on the discount rate.

Hedge
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Well, just further proof that my prognastications are always wrong.

I may have, on a fluke, gotten one I-bond rate right. But there was probably some explanation, so my I contend my perfect record of failure is unblemished.

On a serious note this is bailing out the markets and will increase inflation, especially real inflation, and hurt those of us trying to save.

I haven't even bothered to look at the markets.
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Looked at Bloomberg and the one thing I have been noticing that might be of interest (not that stocks are up and regular Treasury yields down) is that the differential between TIPS and Treasuries shows that even the traders are factoring higher, if not huge, inflation. 10-years are now over 2.3% differential and I know they had gotten down to around 2.15, perhaps lower. We need to watch CDs. MY CU didn't lower this week, which is good because I have a rollover (I may even try adding a few pennis, which all I've got). I may use some of this month's paycheck and grab a Pen Fed (or local CU if it is still high in 2 weeks).

I'm not convinced of a Pen Fed Jan fire sale. But supply and demand is different for CUs than Wall Street.
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On a serious note this is bailing out the markets and will increase inflation, especially real inflation, and hurt those of us trying to save.

He sold us down the river...hope everybody likes EU gas prices...how's $4/gal. grab you?? Actually EU is like $6/gal. but $4 will do it.

rk
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He sold us down the river...hope everybody likes EU gas prices...how's $4/gal. grab you??

He did what was necessary to keep the spice flowing. I'm certain that he's not a happy man today, in spite of the vote being unanimous.

The spice must flow. ("Dune")

Hedge
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Well, what the heck do I know. I'm the bellwether to watch when buying individual stocks --- when I jump in it's time to get out.

My stocks are doing well, but overseas is buying them with discounted Euros. Asset allocation and bond/CD ladders when I retire. I need THAT tattoo for my arm.

They're interviewing Greenie on Cavuto and I didn't know there were THAT many ways to say "No Comment."

Hockeypop
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The spice must flow. ("Dune")

Hedge


Agreed, but they provided needed capital funds to the banking industry. Printing money AND lowering the carrying cost better prime the pump because no one's spending less money.

http://www.investorsinsight.com/otb_va_print.aspx?EditionID=587

Loki for Fed Chief!

Hockeypop
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They're interviewing Greenie on Cavuto and I didn't know there were THAT many ways to say "No Comment."

He does it well, doesn't he? They're playing the response about how it's a different world now, because back then he didn't have to worry about inflation. Another non-answer. Yeah, sure, you could take it to mean that he disagrees with Bernanke. But, it's more than likely that he was just hedging his bets in case Bernanke and crew decided Not to cut rates. What would it look like if the former chairman said "yep, rates go down a bunch from here", before the announcement was made? It would be a disaster for the Fed and for the economy. Especially if the Fed hadn't moved.

Hedge
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The spice must flow. ("Dune")

One of my most favoritest books!! But it won't save us.

75% of GDP is consumer spending, with $4 dollar gas, all electronic devices going up 20%; Mr. Consumer is going to freeze up!! We'll have $90/bbl. PDQ!! $100/bbl. by yr. end?? What's the price of a Camry next Spring?

Look at what happened to the dollar today...

rk
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75% of GDP is consumer spending, with $4 dollar gas, all electronic devices going up 20%; Mr. Consumer is going to freeze up!! We'll have $90/bbl. PDQ!! $100/bbl. by yr. end?? What's the price of a Camry next Spring?

Look at what happened to the dollar today...

rk


Not that I disagree, but that Camry is now build in Kentucky, you're buying Toyota stock with cheap dollars, and if 40% of major US company's revenue is from overseas, the US economy should sell more (which raises the problem of inflation, but what worker is happy with low prices and no job?).

Bogle said recently that our economy by 2042 will NOT be as strong against the international markets as it is now. But we still ARE pretty strong now. http://money.cnn.com/galleries/2007/moneymag/0709/gallery.whats_ahead.moneymag/

Who knows?

Hockeypop
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75% of GDP is consumer spending, with $4 dollar gas, all electronic devices going up 20%; Mr. Consumer is going to freeze up!!

$3 gas and endless "greenspot" advertisements by the oil companies have prepared the way for $4 gas. As the public gets more pessimistic about oil and pollution, they will prepare themselves for $5 gas without as much as a squeak.

As far as electronic devices, gahh, who needs anything else? Any computer available in the past 3 years far outstrips anyone's conceivable needs for them. Most of the CPU cycles on mine are spent computing SETI blocks. Even if I was still playing quake, most of the CPU cycles would still be used for SETI. How many more ipods and iphones and icrap will the consumer be goaded into buying? It has to eventually collapse. What the next great thing will be, I don't know. Maybe pet rocks and hula-hoops again, or getting outside and whacking a ball around with a stick? At least they'll be affordable with $5 gas. :)

Mr. Consumer is bored, and that's why he's spending money on hot cars and electronic junk and being "connected". He'd be more than happy to discover something new to do with his "excess funds". As it is, there's not much left to do with his money other than save it, and we know how exciting that is.

Hedge
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Bogle said recently that our economy by 2042 will NOT be as strong against the international markets as it is now.

Edmunds (not nearly as well known, and reviled by some) says that the USD will decline against all other currencies over the course of your lifetime. When you compare the growth potential of the most fully developed country (US) against all others, it's an easy conclusion to reach. It's easier to grow when you have less than when you have more.

Hedge
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Mr. Consumer is bored, and that's why he's spending money on hot cars and electronic junk and being "connected".

Don't have a cell-phone, but I live for hot-cars

rk (grin)
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He sold us down the river...hope everybody likes EU gas prices...how's $4/gal. grab you?? Actually EU is like $6/gal. but $4 will do it.

E 1.30/liter, or $6.84/gal here in Italy today.

Maybe we will use less of it in the USA if the price goes up?
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