http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/ Tue, 17 Aug 2010 02:24:01 +0000 hourly 1 http://wordpress.org/?v=3.0 http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/comment-page-1/#comment-13439 Acetrader Wed, 15 Aug 2007 14:40:39 +0000 http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/#comment-13439 No FED rate cut please....but GS is staring to look really attractive at these levels...watching and waiting to nibble on it...this is a traders market right now...no buy and hope. No FED rate cut please….but GS is staring to look really attractive at these levels…watching and waiting to nibble on it…this is a traders market right now…no buy and hope.

]]> http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/comment-page-1/#comment-13424 Terry Zink Tue, 14 Aug 2007 03:37:42 +0000 http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/#comment-13424 I think the Fed is part of the problem to begin with. Injecting cash into the economy whenever they so choose is what causes the boom and bust cycle in the first place. I think the Fed is part of the problem to begin with. Injecting cash into the economy whenever they so choose is what causes the boom and bust cycle in the first place.

]]> http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/comment-page-1/#comment-13423 PuddinHead Tue, 14 Aug 2007 03:14:20 +0000 http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/#comment-13423 The Feds obligation is and should be the US economy: first to defend against the tyranny of inflation and second to ease unemployment when that is high and rising. Currently, the economy is stable and inflation is not a big concern, although consumers of gas, corn, meat, pizza, starbucks, copper and other items might disagree ;-) Employment is good and no real signs of deterioration despite the decline in the housing market. To ease now would say the recent problems will have a drastic impact if we don't lower now. That is not a message they want to send. Risk takers are important to our economy and markets, but taking blind risk (moral hazard) cannot be supported by bail-outs. Let some people burn, let some mortgages fail, let the wall streeters only get a few million each in bonuses this year. Thin the herd, but save the economy. The Feds obligation is and should be the US economy: first to defend against the tyranny of inflation and second to ease unemployment when that is high and rising. Currently, the economy is stable and inflation is not a big concern, although consumers of gas, corn, meat, pizza, starbucks, copper and other items might disagree Employment is good and no real signs of deterioration despite the decline in the housing market. To ease now would say the recent problems will have a drastic impact if we don’t lower now. That is not a message they want to send. Risk takers are important to our economy and markets, but taking blind risk (moral hazard) cannot be supported by bail-outs. Let some people burn, let some mortgages fail, let the wall streeters only get a few million each in bonuses this year. Thin the herd, but save the economy.

]]> http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/comment-page-1/#comment-13418 Matt Mon, 13 Aug 2007 23:58:14 +0000 http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/#comment-13418 The problem with the WSJ article and so many TV economists view of the current credit issues is that many forget that the Fed has many other roles that they play in addition to stablizing inflation and providing liquidity for a solid GDP number. So I went right to the Feds website and sure enough here is one of their main responsibilities: "maintaining the stability of the financial system and containing systemic risk that may arise in financial markets." Including credit! IBD has the more accurate analysis. The problem with the WSJ article and so many TV economists view of the current credit issues is that many forget that the Fed has many other roles that they play in addition to stablizing inflation and providing liquidity for a solid GDP number. So I went right to the Feds website and sure enough here is one of their main responsibilities:
“maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.” Including credit!
IBD has the more accurate analysis.

]]> http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/comment-page-1/#comment-13417 Bonddad Mon, 13 Aug 2007 23:28:22 +0000 http://www.chrisperruna.com/2007/08/13/hey-fed-what-will-you-do/#comment-13417 I dealt with this on my blog, but there is now way the Fed is going to lower rates with the dollar in a bear market. I dealt with this on my blog, but there is now way the Fed is going to lower rates with the dollar in a bear market.

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