Wall Street to Fed: Cut rates now!

reply to post by SEEWHATUDO


YepSeeWhatU and Marg, you got it right on...

-38% in a Q is not very nice at alll...Would make me want to run from said institution as fast as my ass would carry me...

Sheesh...

If this whole thing had have been handled with honesty and some semblance of transparency for all market participants, this situation would not be half as bad for a lot of people...

Peace

I have to wonder how much "help" these banks are getting from not only the Feds rate cut but from our own Government. Many of these "subprime" loans were FHA loans which means our Government insured the loans so if borrowers default, Government pays. That is what a HUD home is, an FHA insured home that was foreclosed on and in my neck of the woods I see a ton of HUD for sale signs around.
What is sad is the FHA loans, which on paper are supposed to be heavily regulated, were just as vicious.
Go to the HUD website and look at HUD approved originators/lenders and I can tell you from my experience in real estate transactions, most are predatory originators/lenders by definition.
If our government doesnt care and the banks get bailed out, we will be in this exact same position in 10 years.
Oh and this headline is all over the news sites
Home loan demand surges to near four-year high
which sounds great, right? But no where in the article does it state how many of these APPLICATIONS were actually APPROVED. And APPROVED would be the key word, anyone can fill out an application for a mortgage.
news.yahoo.com...;_ylt=AtIoTamgFgmKJvBG2B4hGmqyBhIF

The Fed will not bail out the market and since day one it, and other Central Banks, haven't taken this financial problem seriously. Their dreamland approach has resulted in the US economy going into recession (Fed will probably confirm next meeting).

Question, can it get worse?

Short answer is yes, due to nothing being done. Our finanical system is facing banks not trusting each other, heavy write off's of bad debt, lack of confidence and huge decline in the markets.

Millions are going to lose their homes, about 44,000 could suffer the same fate in the United Kingdom too. Yet, the Central Banks are more worried about inflation than the possibility of our capitalist system doing into system.

reply to post by infinite


My question is, when does the word "Depression" begin to replace the word "Recession"?
Many analysts are saying we have been in a Recession for a while, when do we hit Depression? That is the word that scares me, when MSN starts letting the word "Depression" leak into their articles will be the sign that the poop has hit the fan.
We start having the word recession tossed around in the MSN articles yet according to many we are in a recession and have been in one for a while.
So when they start throwing the big D word around will that mean we are already in a Deprresion and have been for a while?
AAAHHH, the perfect storm is getting ready to unleash it's might, watch out and run for cover.

reply to post by SEEWHATUDO


A depression is just a severe or long term recession. To be honest, the is nothing unique about the term.

If you had a recession that lasted years then the economic period would be classified a depression.

reply to post by infinite


Yes but it has a psychological effect just like the $100 a barrel

One point to make is that after all the problems with the housing crisis, to this day is nobody to be held accountable for it.

Today in the news the very touchy subject about who will be the one to blame and prosecute for this mess came out.

I find very disturbing when they said that nobody will go to jail for this mess and that is a very regrettable thing.

We are in a mess, consumer confident is on big time low, our nations economy is on hold and nobody is to pay for all this.

The financial leaders that allow this to happen will still get to go home with a big fat check, because believe it or not somebody is making a lot of money with this housing crash.

And their big fix is to export more jobs, increase hiring of illeagal immigrants, cut intrest rates and bailout lenders? Please.

Suspend the Fed from printing more, prison terms for CEO's of companies that hire illeagals, eliminate income and capitol gains taxes for 6months to 1 year, withdraw from all treaties that do not place duty on imports, and do not bailout lending companies.

Yes it is isolationistic, but it puts money in the hands of the consumers instead of corperate profits and government reckless spending sprees.

Interesting video

I'm fairly certain that most, if not all of you have seen these videos of some different "news" agencies discussing the AMERO, the new currency that is being put in place to replace the Dollar once it collapses. If you haven't seen this or heard about it, here is your wake up call....

www.youtube.com...

www.youtube.com...

I think the immediate question that comes to mind is....Why are they even talking about a currency that our "leaders" say doesn't exist or has nothing to with a North American Union? Not to mention the fact that those in charge say the SPP has nothing to do with/not a front for any type of NAU which they consistently laugh about....

I'm buying gold, at least they can't create that out of thin air...


Purduegrad05

My stocks and mutuals are now way in the Red; I'd prefer they just take the hit, all of them, and just get on with it. The Fed, like others have said, is artificially propping up the market. I'm not selling my investments, they'll eventually come back up. I wish I had money to invest now, lots of sales.

Originally posted by infinite
The Fed will not bail out the market and since day one it, and other Central Banks, haven't taken this financial problem seriously. Their dreamland approach has resulted in the US economy going into recession (Fed will probably confirm next meeting).

Question, can it get worse?

Short answer is yes, due to nothing being done. Our finanical system is facing banks not trusting each other, heavy write off's of bad debt, lack of confidence and huge decline in the markets.

Millions are going to lose their homes, about 44,000 could suffer the same fate in the United Kingdom too. Yet, the Central Banks are more worried about inflation than the possibility of our capitalist system doing into system.

I have to believe that you are spot on. Things will get worse and probably quite fast. The biggest problem I see is the FED lowering interest rates again. The idea of lowering the rate is a means to keep the charade of a "good" economy up. With lower rates you get higher market demand which results in greater debts and more liquid in the system. The increased debt and money (more money in circulation means lower buying power for the dollar) in circulation is then spun as "wealth" and when that debt comes due...uh oh! If the FED is serious about helping this economy they will raise interest rates significantly effectively putting added debt to a halt and hopefully allowing time for everyone to recoup and straighten things out. If they continue to lower rates it will perpetuate the problem and the thud when we hit bottom.

reply to post by BennyHill


I find very interesting how the positive littler talks about the market by the same leaders of the financial institutions that got us into this mess seems to boost the markets temporarily.

Funny but it is truth that is physiological.

Tomorrow Merrill Lynch will tell the markets how bad they got hit with the mortgages write outs, they already got a foreign infusion preparing for the down fall, perhaps so it will not be as bad as Citigroup.

Its going to be interesting tomorrow.



[edit on 16-1-2008 by marg6043]

I found this little snippet on Yahoo ---> biz.yahoo.com...

The only major bank that hasn't been affected by this is Bank of America, yet their stock, besides Citi, has taken the hardest hit. Merrill Lynch gained a couple of bucks today, but why? Why are they different than Citi or say JP Morgan? I understand Citi screwed up big time, but why isn't Merrill Lynch's stock still "favored"? Destroying nearly 50% of your firms value in one year is really appalling.

The Fed's going to cut rates again, which will further delay this process. It'd be so much easier to just take the loss and move on thus screwing the market up even more.

reply to post by ChrisJr03


Perhaps the reason is here in this article.

Merrill Lynch received a $6.6-billion investment from Singapore's Temasek Holdings Pte.

They has been bailed out already.

www.canada.com...

Originally posted by marg6043
reply to post by ChrisJr03

 

Perhaps the reason is here in this article.

Merrill Lynch received a $6.6-billion investment from Singapore's Temasek Holdings Pte.

They has been bailed out already.

www.canada.com...

Nice article. Within the first paragraph you get a glimpse at the problem..."cash infusion." In effect, this means that there is more money being tossed in which will result in the dollar tumbling more. That seems to be their answer to all of the problems...MORE MONEY, MORE MONEY! All that does is exascerbate the problem and will eventually lead us into economic disaster. As long as this flawed (and criminal) monetary policy continues, I see no way for this economic trend to improve...

[edit on 16-1-2008 by BennyHill]

Merrill received a $6.6 billion infusion along with a possible $15 billion write down, nothing like adding fuel to the fire. Then today we have Mortgage meltdown: Now the rents. Personally I would say we are very close to a total collapse in the market. Though it does look like it is desired by the FED by the cut in the rate.

Marg mentioned that those responsible need to be held accountable, I couldn't agree more, though its not going to happen. There is a very famous quote; "I care not who makes the laws as long as I control the money." This is precisely the position we are in. Those that control could care less about who makes what law.

As for the Amero, the dollar has already been slotted for extinction by 2010. It doesn't matter if the present administration admits it or not, they already held the meetings. Most likely Bushco and the FED will continue on the present course sinking the economy further and handing the next administration a giant sh*t sandwich. We of course will all have to take a big bite.

Either the FED raises the rate and allows the collapse now (less painful) or lowers the rate and prolongs the agony. One way or the other the Amero will be put in place. The only difference will be the exchange rate. However, I doubt that they will allow sooner than later. If they wait they can pull most of the remaining wealth from the consumer and those that are not among the elite.

I hope that I am wrong but doesn't look very promising.

Here is another indicator; JPMorgan: Profit decline, $1.3B writedown
Profits at Wall Street firm fall short of estimates as the firm takes $1.3 billion hit related to subprime exposure.



[edit on 1/16/2008 by pstrron]

reply to post by pstrron



I agree, I always felt that you do no need a dictatorship to rob the citizens of a nation blind, a democracy run by capitalism gone corrupted by corporate run government does the same.

When the government is run by corporate power they made their own laws.

But they are getting scare that the people will wake up and fight back, that is why wars are planned and executed, 9/11 was very timely to control the population with Patriot act, legislations and gestapo like agencies like Home land security.

Is very interesting how our nation has developed in the last 7 years, very interesting.

Is all there for those that have eyes and wants to see.

Unfortunately many just wants to stay in oblivion.

Be VERY careful with gold. If the dollar drops out two things are possible, the fed will crush the value of gold or follow through the latest executive order that allows the treasury to confiscate gold in the interest of national security.

Originally posted by pityocamptes
Be VERY careful with gold. If the dollar drops out two things are possible, the fed will crush the value of gold or follow through the latest executive order that allows the treasury to confiscate gold in the interest of national security.

There is precedent for this. It happened under FDR if I'm not mistaken.