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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Grandk who wrote (4353)2/16/2008 6:51:08 PM
From: Real Man  Read Replies (1) | Respond to of 71456
 
Greenspan did drop rates to 2% in no time, and Bernanke is
doing the same thing. CPI-U shortly followed. The formal
mistake was that AG failed to raise when CPI-U turned back
up. If in Ben's case CPI does not fall, he may have to raise.
If he doesn't, inflation will skyrocket. Of course, changes
to how CPI is measured (CPI lies) that all happened while AG
was Fed Chairman (and he pushed for those) don't contribute
to "disinflation".



To: Grandk who wrote (4353)2/16/2008 6:52:40 PM
From: Paul Kern  Respond to of 71456
 
What makes Ben think that the banks which didn't want to loan money at "X" per cent because they weren't being compensated for risk, would loan money at X - 2 per cent?

Even at the original "X" per cent, the banks weren't making loans. They were processing paper work, securitizing loans and collecting fees.

They hold toxic paper now because, geniuses that they are, they were caught with their pants down when the securitization market froze up.


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