PeakOil is You
Fed orders emergency rate cut to 1.5 percent
Re: Fed orders emergency rate cut to 1.5 percent
by allenwrench » Wed 08 Oct 2008, 10:35:39
$this->bbcode_second_pass_quote('Tanada', 'F')ree money is worthless if nobody wants it. This is pretty grim news, the only rational course of action would have been to RAISE interest rates.
Posted by: Griffin Jones.- Global Rate Cut? Pretty soon they're going to pay the wealthy class interest just for accepting more money! The problen that all the wealth and assets are logjammed in the elite coffers with no safe gambling opportunities will not be solved by giveaways. Maybe a redistribution, but not giveaways you expert idiots!
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CNBC had 'expert idiot' Steve Forbes on their show this morning. He was begging for the 'nonsense' called mark to market accounting to be dismantled. He wishes to increase the lies and sickness in accounting and the stock market.
One honest commentator asked if someone would invest their money in a company that had no reckoning with reality on their balance sheet...no one answered the question....'honor dies where interest lies.'
We have learned nothing from our bailout mess. We can see this from the debate on how to water down the mark to market accounting standards.
Instead of restoring high financial and accounting standards, we are further relaxing them, in effect increasing the sickness that got us here.
Even with mark to market, we have all these accounting lies. Can you imagine how it will be when asset values can be assigned by the holders of those assets with no reckoning with what the 'actual market value' of those assists are?
"Suspending mark-to-market accounting, in essence, suspends reality." -Beth Brooke, global vice chair, at Ernst & Young
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allenwrench - Tar Sands
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Re: Fed orders emergency rate cut to 1.5 percent
by Snowrunner » Wed 08 Oct 2008, 10:40:57
$this->bbcode_second_pass_quote('Tanada', 'F')ree money is worthless if nobody wants it. This is pretty grim news, the only rational course of action would have been to RAISE interest rates.
It's not that nobody wants it, it's that nobody HAS it.
This is why this puzzles me really, all this does it any money that IS still floating around will go to somewhere where the return is higher, I'd expect them to RAISE the interest rate, not lower it.
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Snowrunner - Tar Sands
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Re: Fed orders emergency rate cut to 1.5 percent
by rockdoc123 » Wed 08 Oct 2008, 10:43:18
$this->bbcode_second_pass_quote('', 'T')his is pretty grim news, the only rational course of action would have been to RAISE interest rates.
yeah good idea....this is precisely what turned a recession into the great depression.
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rockdoc123 - Expert
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Re: Fed orders emergency rate cut to 1.5 percent
by Snowrunner » Wed 08 Oct 2008, 11:09:26
$this->bbcode_second_pass_quote('rockdoc123', 'y')eah good idea....this is precisely what turned a recession into the great depression.
Right, and what makes you think that lowering the interest rates would suddenly cause a surge of lending?
This only makes sense if people couldn't afford to lend, but the way it looks it is that nobody WANTS to lend, so how is a rate drop going to change that?
EDIT:
I think the problem may be that people look too much at 1929 and not enough at the present, as usual we may try to fix a new problem with an old method because it worked (or didn't) last time.
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Snowrunner - Tar Sands
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