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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (112110)	4/4/2012 1:28:45 PM
From: RetiredNow	Read Replies (2) \| Respond to of 149317

Not true. Interest rates, when left to the free market are an important pricing signal. It signals to investors whether the underlying debt is a good bet or not, whether the entity (gov't, corp, or individual) has been managing their finances in such a way as to make repayment a certainty or whether they are so irresponsible that default is a certainty, or somewhere in between. But if the Fed engages in financial repression, like he's doing now by holding rates artificially low, that interest rate pricing signal is destroyed. It tells us nothing about the likelihood we'll get our money back if we invest. That is why Central Economic Planning as done by Bernanke and the Bolsheviks in Soviet Russia ALWAYS fails. No one man or a small group of men is smarter than the interaction of millions of market participants. It literally goes to the heart of why the US has seen enormous prosperity as compared to other countries. We have valued free markets and have a foundation based on regulated free markets that has worked for 200+ years. Yet increasingly since 1929, the Fed has accrued more and more power until now they are at the point where they are literally a 4th branch of government and arguably have the most power to impact our economy. That is a strong negative in my book. I'll trust the regulated free market over one man any day. That goes hand in hand with my philosophy on the rule of law. I don't want our President to have the power to decide who gets assassinated or detained without Judicial overview, because I don't want to live in a country where we have to trust 1 man's judgement. I want to live in a country where we have checks and balances and we live by laws and rules, where no man is above the law and no man can single-handedly dictate the course of our economy.

To: Road Walker who wrote (112110)	4/4/2012 1:31:56 PM
From: RetiredNow	Read Replies (2) \| Respond to of 149317

BTW, back to my discussion with you about how I am waiting until the Fed's intentions are clear and then acting after the dust settled. Well, the last two days after the Fed made noise about not engaging in QE3, has resulted in a pretty ugly stock market sell off. I wonder how long the Fed will keep talking about normalization of policy. If they stick with that, then this market will keep going down. And most importantly, it will prove that this recovery never was real, but rather, it was a figment of the Fed's massive stimulus. As I've been saying for awhile now, free enterprise creates jobs and sustainable recoveries, not the Fed. You don't solve this country's problems with financial heroin. I think we're seeing that over the last couple of days. It's too early to tell for sure and 2 days don't make a trend, but let's see how this turns out.