Stuck in quagmire, Fed likely won’t raise rates

[Fox McCloud]

Stuck in quagmire, Fed likely won’t raise rates

WASHINGTON - An ugly brew of rising unemployment, spiking foreclosures and gyrating energy prices is plaguing the country and making life difficult for Federal Reserve Chairman Ben Bernanke as he tries to right the economy.

rest of the article here: http://www.msnbc.msn.com/id/25999377

well, if this happens, it looks like my economist friend is correct, Bernanke has put himself into a corner; cut interest rates and the dollar is in the toilet, raise interest rates and the economy goes down the tubes.

still, I'm not fully convinced he'll do absolutely nothing...but *shrug* who knows?

Say, does anyone have that one website that is the leading indicator of whether or not the Fed will cut/raise rates or keep them the same?

 

[Ozwest]

rest of the article here: http://www.msnbc.msn.com/id/25999377

well, if this happens, it looks like my economist friend is correct, Bernanke has put himself into a corner; cut interest rates and the dollar is in the toilet, raise interest rates and the economy goes down the tubes.

still, I'm not fully convinced he'll do absolutely nothing...but *shrug* who knows?

Say, does anyone have that one website that is the leading indicator of whether or not the Fed will cut/raise rates or keep them the same?

In a freemarket, interest rates would be considerably higher.

This is good.

 

[Fox McCloud]

In a freemarket, interest rates would be considerably higher.

This is good.

That's all fine and dandy, but what I'm saying is that given the current [unstable] economic environment with the financials, markets, etc, raising interest rates would likely cause them to totally tank.

 

[Ozwest]

That's all fine and dandy, but what I'm saying is that given the current [unstable] economic environment with the financials, markets, etc, raising interest rates would likely cause them to totally tank.

The market is about to tank , due to economic mis - management.

I don't play short term.

You sweat it out.

 

[Ozwest]

Maybe you got half your sweat left.

 

[SevenEyedJeff]

When the market realizes the Fed won't raise rates, the dollar should start getting hit again, and gold should go up. We are about to enter a seasonally strong period for the metals so it could be a very very nice rally.

 

[cbc58]

fed will raise rates.

 

[Ozwest]

Billions to bail out Rip-off mortgage lenders with the goal of hampering interest rates...

To be followed by interest rate rises.

Welcome to America.

 

[anaconda]

In supply side shocks (oil prices in this case) output is reduced and prices increase. There's no easy way out. If you try to stimulate the economy you will set off inflation. If you control inflation you prolong the recession. The real wage needs time to adjust.

 

[Ozwest]

In supply side shocks (oil prices in this case) output is reduced and prices increase. There's no easy way out. If you try to stimulate the economy you will set off inflation. If you control inflation you prolong the recession. The real wage needs time to adjust.

What conerns me, is the huge national debt combined by a de-valued dollar.

Long term, this problem is not going away...

 

[anaconda]

What conerns me, is the huge national debt combined by a de-valued dollar.

Long term, this problem is not going away...

The federal debt as a per centage of GDP is relatively low right now. Much lower than the
40's, 50's, and early 60's.

A "weaker" dollar makes our exports more affordable to foreigners.

 

[Ozwest]

The federal debt as a per centage of GDP is relatively low right now. Much lower than the
40's, 50's, and early 60's.

A "weaker" dollar makes our exports more affordable to foreigners.

Time to swap those "rose colored glasses."

 

[AFM]

The federal debt as a per centage of GDP is relatively low right now. Much lower than the
40's, 50's, and early 60's.

A "weaker" dollar makes our exports more affordable to foreigners.

Sorry, what do we export again?

 

[Ozwest]

Sorry, what do we export again?

I live in Australia.

MADE IN USA means something here.

 

[CzargwaR]

I wish Bernanke was a Ron Paul supporter and decided abolish the Fed from the inside and resign with a strong anti FED statement

 

[LiveFree79]

The federal debt as a per centage of GDP is relatively low right now. Much lower than the
40's, 50's, and early 60's.

A "weaker" dollar makes our exports more affordable to foreigners.

And what is your point? It was a completely different time durng and right after WWII. Your comment takes into account none of the characteristics of the U.S. economy, the debt, citizens, jobs, etc.

For example,

U.S. manufacturing base declined from 30% of GDP in 1953 to 11% in 2006. More U.S. manufacturing is owned by foreigners today than ever before. Like I said I'm not sure what point you were trying to make if at all. But the American economy was MUCH more robust and resilient for so many reasons pre and post WWII. Things, i.e. our debt nowadays is a different debt beast compred to 50 years ago. Post WWII wages/incomes were rising faster than ever. College education was affordable for just about anyone that wanted to go.

 

[Paulitician]

It wont make much a difference whether the Fed raises or lowers rates 25 or 50 basis points anyway. Unless they move drastically in one direction, we're still pretty much headed in the same direction: stagflation

 

[Fox McCloud]

I wish Bernanke was a Ron Paul supporter and decided abolish the Fed from the inside and resign with a strong anti FED statement

He can't--it's not within his authority. Remember, the Fed Chairman is just a figure-head...while he is very easily the director of policy, there's still 12 other Federal Reserve Banks that have a say in things, and they can vote on the policy--remember last time Bernanke cut rates? If I recall, 2 of those present voted against it.

If he was to suddenly see the light, it'd probably be more wise if he spoke out against the Fed, encouraged Congress to shut it down, pushed for banking reform (outlawing fractional reserve banking), and pushed for a return to the gold-standard.

That said, he couldn't close down the fed; no doubt ALL the other members would note "no" against it.

 

[Paulitician]

That said, he couldn't close down the fed; no doubt ALL the other members would note "no" against it.

Why would they? They can inflate their paycheck basically at will. I'd like to have that job

 

[Ozwest]

A slow, steady decline in the markets is bearable.

Unfortunately, there is going to be a run.

This is what I have prepared for. Get liquid.