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post #11 of 31 (permalink) Old 11-15-2008, 08:29 PM
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Bernanke is talking about a prime interest rate cut again. Is he out of his mind? We are now at 1 % !!!!!! Down from 5 % just short 7 months ago. So we go to zero just to prop up stock market for a week at a time?. The effects of this rate cutting on the stock market performance are so negligible and shortlived lately that in my opinion it is a waste of time at this stage. What is being affected negatively by these rate cuts are people's savings. Can you imagine what this will do to retired people who live off of interest on their savings? Instead of 5% a year they will be getting 1% at best. And who in the world wants to invest long term in this stock market now?

I think that the economic situation is a lot bleaker than they are admitting. I think Bush is willing to do absolutely everything at this point just to avoid complete economic and stock market collapse before the end of his term. Even if it means another $ 1 trillion bailout. After he leaves the office, the house of cards can fall for all he cares. It will of course be Obama's fault.

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post #12 of 31 (permalink) Old 11-15-2008, 08:32 PM
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The implementation of the log known as Gramm-Leach-Bliley comes squarely under the heading of "throwing log after log in the fire to artificially prop up a naturally receding housing industry". Just because you didn't see a slowdown coming, doesn't mean folks pulling the purse strings on Capital Hill didn't want to encourage the industry...

BTW, what do you have against Jim Leach?

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post #13 of 31 (permalink) Old 11-15-2008, 08:34 PM
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Bernanke is talking about a prime interest rate cut again. Is he out of his mind? We are now at 1 % !!!!!! Down from 5 % just short 7 months ago. So we go to zero just to prop up stock market for a week at a time?. The effects of this rate cutting on the stock market performance are so negligible and shortlived lately that in my opinion it is a waste of time at this stage. What is being affected negatively by these rate cuts are people's savings. Can you imagine what this will do to retired people who live off of interest on their savings? Instead of 5% a year they will be getting 1% at best. And who in the world wants to invest long term in this stock market now?
Rate cuts are not intended to support the short term stock market. The plan [well, the scattered bits of plans that seem to fall from the sky] is to start rebuilding the foundation.

The impacts on the stock market will come as the foundation improves. Anything else is simple confectionery.

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post #14 of 31 (permalink) Old 11-15-2008, 08:35 PM
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Bernanke is talking about a prime interest rate cut again. Is he out of his mind? We are now at 1 % !!!!!! Down from 5 % just short 7 months ago. So we go to zero just to prop up stock market for a week at a time?. The effects of this rate cutting on the stock market performance are so negligible and shortlived lately that in my opinion it is a waste of time at this stage. What is being affected negatively by these rate cuts are people's savings. Can you imagine what this will do to retired people who live off of interest on their savings? Instead of 5% a year they will be getting 1% at best. And who in the world wants to invest long term in this stock market now?
The same crew who caused this fiasco has now been charged with explaining the cause and implementing corrective measures. As they have proven incompetent and refuse to assume full responsibility, there is very little chance of a successful reversal.

"If spending money you don't have is the height of stupidity, borrowing money to give it away is the height of insanity." -- anon
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post #15 of 31 (permalink) Old 11-15-2008, 08:46 PM
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post #16 of 31 (permalink) Old 11-15-2008, 08:57 PM
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The implementation of the log known as Gramm-Leach-Bliley comes squarely under the heading of "throwing log after log in the fire to artificially prop up a naturally receding housing industry". Just because you didn't see the slowdown coming, doesn't mean folks pulling the purse strings on Capital Hill didn't...

BTW, what do you have against Jim Leach?
I have just always abbreviated it either GLB or Gramm Bliley. Not sure why.

But I don't think it's intent was to prop up housing. It's primary intent SEEMED to be gutting Glass-Steagall Act at the behest of the financial sector lobby [if gramm's donation schedule is even remotely accurate].

It was a reconfiguration of nearly ALL regulations that allowed banks to cross pollinate services as they had not been able to do before. That increased competition and led to seven or so years of shortcuts and backdoor activity.

The mortgage element of GLB was just a byproduct of an overhaul of all lending and bundling instruments. Changes in consumer credit [cars, credit cards] and business loans also were fully effected by GLB. The urge to deregulate was very great and the down road look at unintended consequence was minimized.

While it was not the ONLY trigger to the collapse of the Financial Sector. Much of the woes of the sector are directly connected to GLB. It was the catalyst that brought on the flood of competing companies for mortgages, car loans, credit cards. It was the catalyst and authorizing document of many of Greenspan's new investment instruments and their newfound freedom [Look at the worldwide derivatives market prior to 1999 and after 1999 [$70T in Notional Value in 1998 and $596T in 2007 - Bank for International Settlements ]

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post #17 of 31 (permalink) Old 11-15-2008, 08:58 PM
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The same crew who caused this fiasco has now been charged with explaining the cause and implementing corrective measures. As they have proven incompetent and refuse to assume full responsibility, there is very little chance of a successful reversal.
That is correct. There needs to be fresh eyes and fresh philosophy addressing this.

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post #18 of 31 (permalink) Old 11-15-2008, 09:07 PM
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Well, it wasn't just done for shits and giggles. There was a specific impetus to push that particular legislation through at that particular time. We may never know for certain what that impetus was, but the mortgage/housing industry seems as likely as any. With so much American industry shipped abroad, the general health our entire economy is/was tied to the housing industry to an obviously unhealthy extent.

"If spending money you don't have is the height of stupidity, borrowing money to give it away is the height of insanity." -- anon
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post #19 of 31 (permalink) Old 11-15-2008, 09:08 PM
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Debt to racial that is what this country forgot.

If you thank you can or you thank you can't your right
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post #20 of 31 (permalink) Old 11-15-2008, 09:12 PM
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