Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (90725)	1/22/2008 1:23:48 PM
From: Keith Feral	Read Replies (7) \| Respond to of 110194

John, great comments. I really have alot of respect for Ben Stein, who was the first to point out that Goldman had serious conflicts of interest for shorting the products they were selling. The FED has inspired almost every economic calamity by overtightening monetary policy to the point where people can't pay their mortgages. This is the problem with FED policy. To fight higher oil prices, they are jacking up mortgage rates so that no one can afford to pay their mortgage. That is insane!! Plus, it makes our trade balance go to hell in a handbasket. They need to keep interest rates around 2.5% to 3.0% so that people can get used to a stable housing environment for the next 3 to 5 years. If they want to control lending, make the banks increase reserves. Make the banks shut down all of the unprofitable warehouse divisions that provide liquidity for companies like Countrywide or all the mortgage reits. It's a good thing these are these reforms are taking place right now. In 6 months, people are going to be looking for the recession that never happened. I am so relieved that Bernanke decided to get in front of the problems, by getting interest rates back down. Maybe we can get a decent Spring housing market since people won't have to wait around til 2009 for good mortgage rates. I am all for this move to get things moving ahead in this country.