Welcome to Slider's Dugout Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Welcome to Slider's Dugout

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Fun-da-Mental#1 who wrote (6272)	9/3/2007 2:52:59 PM
From: jim_p	Read Replies (4) of 50749

The sad part for the stock market is that three rate cuts are already priced into the market and I'm not convinced that we will see three rate cuts this year or ever if the bottom falls out of the $UDS or inflation increases both or which I believe will happen with lower rates. The only way a rate cut should happen is if the central banks get together and all cut rates about the same amount around the same time. In addition, a rate cut will do nothing for the homeowner with negative equity and poor credit. In fact it will most likely trigger an increase in long term rates that will further hurt housing which is already in its worst down cycle since the great depression and all of this will low unemployment and a growing world economy. -Teaser rates on mortgages on homes that people could never have afforded otherwise??? -Zero interest rates on credit card advances to allow the game to continue even longer??? -Zero down on auto loans and in some cases paying more than market value on the trade in??? And just think all of this crap was folded up and sold in creative packages with higher credit rating than was justified. It's not just sub-prime mortgages that are the problem here, it was the entire system on how all credit was created, packaged and sold. Think about it................this has been the driving force for economy for the last 5-7 years and virtually no one is going to buy these CDO's etc or even the asset backed CP that many used to inventory this stuff until it could be unloaded to the bag holders. We are witnessing a complete change to the system that was the driving force to our economic wellbeing as we exported manufacturing jobs to countries that are now going through incredible wage inflation. The unwinding of bubbles are always painful and ugly. I think we are now into the unwinding of this liquidity driven bubble long enough that anything the Fed could do would have little effect in changing the direction. JMHO, Jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next