Nov 11, 2009, 10:34am
Nov 10, 2009, 8:45am
The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.
Considering that the latest ARM resets and Alt-A issues haven't even begun to rise to the surface, I think we can confidently say that the Treasury and the Fed might have to turn to the balance sheet (again) sooner rather than later. Nay?
What bubble might we "accidentally" inflate next?
Sep 15, 2009, 2:22pm
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Posted by AJ , Dec 16, 2008 2:44PM
With 0% interest rates, what bubble will we not inflate?
Posted by guest , Dec 16, 2008 2:45PM
Accidentally?
What makes you think any of these bubbles are "accidental?"
Posted by guest , Dec 16, 2008 2:45PM
Bernanke-san!!!!!!!!!!!!!!!!!!!!!!!
Posted by ep , Dec 16, 2008 2:47PM
"Posted by guest, Dec 16, 2008 2:45PM
Accidentally?
What makes you think any of these bubbles are "accidental?""
Hence the quotes, swifty.
Posted by guest , Dec 16, 2008 2:50PM
Japanic at the Disco
Posted by guest , Dec 16, 2008 2:50PM
@ 2 thank you sir/madame, there is lunch on my screen
Posted by guest , Dec 16, 2008 2:50PM
lol @ "swifty"
Posted by guest , Dec 16, 2008 2:51PM
In the long run we are all dead.
Posted by guest , Dec 16, 2008 2:54PM
the nutty professor is boozed up heavily!
Posted by guest , Dec 16, 2008 2:54PM
Effective Fed Funds has been 0-25 bps since 12/4. Seems like a case of the target rate getting a cue from the effective rate rather than the other way around.
Posted by guest , Dec 16, 2008 2:55PM
@8 - very true.
@3 - if you were a Mason, Commission Member, or Rose Crustacean* you would know the truth.
*don't correct me - it was intentional
Posted by guest , Dec 16, 2008 2:57PM
we're halfway there. just need to change fair value accounting to stop the write downs on bad bank roans.
Posted by guest , Dec 16, 2008 2:57PM
Whoops - 11 here - meant @2 not @3
Posted by guest , Dec 16, 2008 2:59PM
Next bubble. Ammunition and canned goods.
Repent!
Posted by guest , Dec 16, 2008 3:00PM
CAN CRAMER BE ANY MORE WRONG, IDIOTIC, RETARDED, NON-SENSICAL????
I think he's given up on maintaining that last shred of credibility and gone off the deep end. schmuck. wow, can't believe i just had to watch that. dumb. i'm dumber now.
Posted by guest , Dec 16, 2008 3:04PM
@15 - yes, he can. Just keep watching.
Posted by guest , Dec 16, 2008 3:05PM
affraid of a hangover...just keep drinking baby!!
Posted by guest , Dec 16, 2008 3:09PM
Holy Fuck, what are all those Chinooks doing landing on the lawn at the Federal Reserve? And where the Hell did they get all those forklifts?
Posted by guest , Dec 16, 2008 3:14PM
#12 wins. Thanks for playing, everyone.
Posted by guest , Dec 16, 2008 3:20PM
wow the money supply is gonna balloon.. gonna cause massive inflation (devaluation of the dollar monetary style.. not actual real value of goods/services increasing)
With that in mind with rates low and housing prices puked.. now may be a great time to buy a place!! (and lock in a loan at uninflated dollars)
Posted by guest , Dec 16, 2008 3:23PM
For those of us not watching Cramer... what's he saying?
Posted by KevinB , Dec 16, 2008 3:37PM
@11 - I don't understand; what do you have against pink crabs?
If you choose to respond, please do so at maximum volume, lest you be drowned out by the presses.
Posted by guest , Dec 16, 2008 3:39PM
@ 20
Yes.
Posted by guest , Dec 16, 2008 3:40PM
get rid of cash because in six months we will be using it to wallpaper.
What a way to get rid of the national debt! Talk about creative financing.
Can you say Germany in the 30's
Can I buy a loaf of bread with my truckload of dollars? NO!
Hi Hitler!
Posted by guest , Dec 16, 2008 3:48PM
http://www.youtube.com/watch?v=PQyClNEfncg
Posted by guest , Dec 16, 2008 3:48PM
maybe buying this monster box of gold eagles wasn't such a stupid investment last year.
Posted by guest , Dec 16, 2008 3:52PM
This just in. Bukkake purchases additional printing presses to keep Mexico from buying Arizona, Canada from annexing Wisconsin; and Hawaii becoming a Japanese protectorate.
Posted by guest , Dec 16, 2008 4:02PM
bernanke's final utterance at today's meeting: "deploy the helicopters."
Posted by guest , Dec 16, 2008 4:07PM
Japan did not have a huge national debt to get rid of when they had 0% interest but America does have 11 trillion to inflate to worthless paper.
Americans do not save or are negative savers. Japanese had saved a lot before that time of 0%.
Japanese did have very inflated real estate which afterwards it did not. America has a bunch of worthless TARP paper with real estate that is worth less than the market can support due to fraud by lenders and appraisers and bankers.
Whats the point of having 0% interest?
Posted by guest , Dec 16, 2008 4:10PM
@28. "Chinooks won't cut it. Release the Hinds."
Posted by guest , Dec 16, 2008 4:15PM
The point of 0% interest rates is to
1) make the dollar less valuable so foreign governments can buy our assets (e.g. real estate) on the cheap
2)force Americans to spend their money because you sure as hell aren't going to be rewarded for saving it
3)scorch the earth so Obama can't grow anything
Posted by guest , Dec 16, 2008 4:18PM
Seignorage of this sort is a pretty logical move in the face of slow money/deflation. I mean, the gov't is seeking to fund stimulus projects by issuing debt at close to zero percent interest rates--with the coupon denominated in dollars--then devaluing the dollar (essentially) through FOMC action, with the tradeoff being the spectre of inflation--which just isn't the most immediate danger right now. Doesn't seem like a bad move on paper. The government is involved though, so there is some significant execution risk here.
@24 You've #REF!ed up the decade: that was Germany in the '20s. The '30s had lots of repetitive marching and glass breaking, but no wheelbarrows full of worthless scrip.
Posted by guest , Dec 16, 2008 4:25PM
@32 #REF!ed...classic
God we're all such losers...
Posted by guest , Dec 16, 2008 4:26PM
so whats the ETA on this "hyperinflation"
Posted by guest , Dec 16, 2008 7:35PM
@24
Obama = Hitler? OH SHI-
Posted by guest , Dec 16, 2008 9:29PM
@20
who borrows money to buy a house? if you can't pay for it you can't afford it
Posted by guest , Dec 17, 2008 8:43AM
i think 95%+ of homeowners borrow (or have borrowed) money to buy a house.