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- A Fed Rate Hike Won't Solve the Current Crisis [view article]
- Strategists' 2008 S&P 500 Price Targets [view article]
- Three One-Percent Gains in Five Days [view article]
- The Oil Bubble Will Meet the Same Fate as Tech, Housing [view article]
- AmEx Misses: The Bear Trap Thickens [view article]
- Asset Class Correlations [view article]
- Hedge Funds: Changes in Beta from a Bull to a Bear Market [view article]
- S&P 500 Sector EPS Growth for Q2 [view article]
- ETF Industry Data Summary: 1H'08 [view article]
- A 'Buy the Loser' Rally [view article]
- Gannon On Investing's July 2008 Blogger Roundtable [view article]
- Was That 'a' Bottom or 'the' Bottom? [view article]
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- Bespoke's Sector Snapshot (7/25/08)
- A Fed Rate Hike Won't Solve the Current Crisis
- Strategists' 2008 S&P 500 Price Targets
- Three One-Percent Gains in Five Days
- Sector Performance Surrounding Earnings
- AmEx Misses: The Bear Trap Thickens
- ETF Industry Data Summary: 1H'08
- Asset Class Correlations
- Gannon On Investing's July 2008 Blogger Roundtable
- S&P 500 Sector EPS Growth for Q2
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A Fed Rate Hike Won't Solve the Current Crisis [view article]
If inflation is beneficial Zimbabwe should be a garden spot of prosperity, in the midst of a housing boom, instead of starving to death.It's a shame the citizens of same are 90% illiterate and can't read this article.
If D. White had done his homework and read--(or listened) to T.B. Pick's plan he would not have criticized it for using nat gas when it is "tight"--he would have noticed the nat gas being used for auto fuel was FIRST being freed up by using wind generation to produce electricity.
The Pick is a known success story/quantity who puts his -ample-money where his mouth is, and I'll listen to him any day over a Politician who puts his mouth where my money was.
I've learned more from Sponge Bob than jimmy Carter,--30 years ago--showing us how to deal with energy shortages! and every politician since--in whose capable hands--we left the problem.
Reply
A Fed Rate Hike Won't Solve the Current Crisis [view article]
The only way the US will curb the trade deficit is to sell higher quality, and lower cost, goods & services (like Hondas). GM, Ford, et al, have a long way to go. ReplyA Fed Rate Hike Won't Solve the Current Crisis [view article]
This is an article that says you can help a drunk by keeping him in booze. You know, if you try to make him stop drinking he's likely to get very sick, so do the right thing and keep him drunk.I agree with the previous poster in that inflation doesn't have to be in the form of higher wages. It could be that its just making everybody poorer (the money you have buys less of the things you need to live).
Low interest rates below what the level of savings would have naturally dictated is like taking human growth hormone. You can only get certain amoutn fo healthy growth, beyond that the HGH just creates tumors and other cancers. We've gotten to the point where the tumors have been able to buy enough influence in congress that they can keep the flow of HGH coming. Also, many people can no longer tell the difference between what is tumor and the original organism. So when the tumor shrinks they exclaim "our growth is stagnating, protect the growth"
Author lacks any sense of economic justice, all about how to keep a messed up system teetering along. I've venture to guess he doesn't know what a healthy system is supposed to look like, and just knows what he's experienced in his lifetime. Reply
A Fed Rate Hike Won't Solve the Current Crisis [view article]
I have to disagree with David White's opinion that inflation makes homes more affordable. That can happen under certain conditions with wage inflation; that is not the inflation we see right now and is not likely in America because we are still the highest paid workforce on the planet. Global competition will keep the lid on our wages.Energy is the largest economic problem we face. It could also be our largest economic opportunity. I try to discuss this in the latest posting on my website. Reply
A Fed Rate Hike Won't Solve the Current Crisis [view article]
I have to agree that inflation is what destroys wealth. Few benefit, most suffer, especially the poor and the struggling middle class. The wealthy are usually adept at avoiding the worst inflation better than the rest.There are benefits to everything, including cancer and war. But that doesn't make them desirable or something we would hope for. Reply
A Fed Rate Hike Won't Solve the Current Crisis [view article]
Inflation is good??? This is insanity.Inflation would effectively reduce fixed rate debt in real terms and similarly reduce savings in real terms.
This is tantamount to transfering money from savers to those that have demonstrated fiscal irresponsibility. It's wealth redistribution at its worst...thievery plain and simple. Shame on you for even suggesting the idea. Reply
Lathrop
A Fed Rate Hike Won't Solve the Current Crisis [view article]
I started reading this article until I got to the point where the author started speaking about how low rates and inflation stimulate home buying. I then checked the Fed Fund rate and saw that banks are borrowing for 2 percent and lending it out to prime rate customers at 6.74 percent - higher if your credit, income and teeth are not spotless. You would think that a bank could live on those kinds of spreads but they are not passing them along to the homebuyer, they are just hoarding and speculating. At that point the rest of the article degenerated into a discourse of T. Boone Pickens' wit and wisdom. Its sort of like calling up the fellow who won last weeks Mega Millions and asking him what he would do to save the economy. And this article is an editor's pick? Shame. ReplyCulligan
A Fed Rate Hike Won't Solve the Current Crisis [view article]
Since we could not find a vehicle registered for T. Boone Pickens, the oil man on television, see what vehicle his wife driveswebofdeception.com/#pi...
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A Fed Rate Hike Won't Solve the Current Crisis [view article]
We always talk about the Fed and interest rates, but there is another tool that is far more effective: fiscal policy, i.e., tax rates.A 1% income tax surcharge (about $28 billion) both dampens economic activity [maybe we should have done this a few years ago] and reduces the federal deficit, a KEY cause of the weak dollar. Likewise, when times are difficult, a 1% tax decrease puts more money into the economy right away. Tax changes, unlike interest rates, directly affect the average American and start working immediately.
While the Bush tax cuts might have made sense during the early-2000's economic downturn, they should have been reversed as the economy improved and then overheated. Then we could be cutting taxes now, much better than lowering interest rates. You can't have it both ways, stimulating the economy when it is hot and when it is cold.
For those who think taxes are always bad, how about we just cut them to zero and borrow the entire Federal budget? That OK with you? Reply
A Fed Rate Hike Won't Solve the Current Crisis [view article]
You are overlooking that many of the problems we face today are the direct result of interest rates being lowered too much for too long...The argument for lowering rates is to stimulate the economy-- but you can't fix overleverage with more leverage
Meanwhile, interest rates that are markedly below the rise in the cost of living (not necessarily the textbook definition of inflation) means that you are taking money away from savers (aka the elderly and others on fixed incomes) and diverting that money to stupid bankers who shot themselves in the foot.
Punishing the prudent to reward the foolish is no way to fix anything Reply
Strategists' 2008 S&P 500 Price Targets [view article]
I'm sufficiently cynical about such forecasts because, should these financial instituions estimate an 1100 or even 1000 finish to the year, I think they think that'd stimulate a sell-off. Since the S&P has such a strong financial component, what they think they'd be feeding is a sell off of their own companies. Hmmm..., a vested interest perhaps?? ReplyA Fed Rate Hike Won't Solve the Current Crisis [view article]
Meant to put comma, but point is raise rates now lower because if lower, then increases inverted yield. ReplyA Fed Rate Hike Won't Solve the Current Crisis [view article]
Pickens is correct, but his hypocricy by going on national T.V. and saying he has changed when a few short months he was pumping oil irks me. But any good investor will go towards the money. If he helps change some minds in Washington, all the better. Dmitri is also correct. The Fed will raise rates creating a further inverted yield spread deepens the recession. If banks were lending that would be a different matter but they are shoring balance sheets. How does lowering the short-term rate from here help the 70% of the U.S. economy which is consumers? It doesn't. More firesales will happen and more private equity investors here in the States and abroad will gobble it up. ReplyA Fed Rate Hike Won't Solve the Current Crisis [view article]
T. Boone Pickens has emerged as the sole bi-partisan leader in 2008. Of course he has his own monetary interests in the outcome, but wouldn't you invest in a mutual fund in which the manager has millions of his own cash invested in it? ReplyKashirin
A Fed Rate Hike Won't Solve the Current Crisis [view article]
the article has the right idea - less import but solutions is wronglow interest rates is a disaster
consumer must stop consuming to improve trade balance and this can be achieved or through dollar devaluation or through higher interest rates
both ways include deep recession
higher interest rates are healthier long term for the economy
but as US government doesn't want - dollar devaluation will happen Reply