Posted on 02/26/2008 6:50:58 PM PST by Flavius
NO Fear...Obama is near.
Typically, that slowdown should slow inflation as well — the second part of the diagnosis — but prices are still marching higher.
The truth is this whole thing is a huge tax on the affluent. CD rates are hitting bottom, but loan interest rates have actually gone up. Its really about replenishing the bank’s coffers so the Government doesn’t have to bail ‘em out.
Typically, that slowdown should slow inflation as well — the second part of the diagnosis — but prices are still marching higher.
The truth is this whole thing is a huge tax on the affluent. CD rates are hitting bottom, but loan interest rates have actually gone up. Its really about replenishing the bank’s coffers so the Government doesn’t have to bail ‘em out.
I’m sorry, does that article say that the Feds are worried that it might be comming back?
News flash einstein, its already here, and its screwing everything up....
about as effective as having 20 yellow buses under water and sending napkins to soak up the flood
Agreed. I was just telling my wife about this tonight. The bear is here and is roaring.
Stagflation. HMMM...Thats kind of a cool made up word. Why dont they just say “Stagnant Inflation” and make themselves sound smart...
Roaring like someone ate his poreage...
I agree.
I just hope it is Stagflation-lite not that of the 70’s but we plan on buckling down financially to insulate ourselves as much as possible.
“Stagflation. HMMM...Thats kind of a cool made up word. Why dont they just say “Stagnant Inflation” and make themselves sound smart...”
It’s not new. Stagflation was a term in common use during the 70s. And it was borrowed from the British who were using it decades earlier.
That is a large part of the problem.
We’ve developed less oil, and used more corn for ethanol resulting in less land for foodstuffs all for a fuel that is less 3/4 the BTU’s of gasoline or diesel.
Food and fuel shortages will result. But Archer Daniels Midland stock is up!
"I cannot help but raise a dissenting voice to statements that we are living in a fool's paradise, and that prosperity in this country must necessarily diminish and recede in the near future." ~~E. H. H. Simmons, President, New York Stock Exchange, January 12, 1928
"Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months."~~Irving Fisher PhD, leading U.S. economist , New York Times, October 17, 1929
"If recession should threaten serious consequences for business (as is not indicated at present) there is little doubt that the Federal Reserve System would take steps to ease the money market and so check the movement."~~Harvard Economic Society, October 19, 1929
"This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan... that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years." ~~R. W. McNeel, market analyst, as quoted in the New York Herald Tribune, October 30, 1929
"American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage."~~Alan Greenspan, February 22, 2004
“The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning the greater resilience of our largest financial institutions.”~~Alan Greenspan, May 2005
"We're not about to go into a situation where (real estate) prices will go down. There is no evidence home prices are going to collapse."~~Alan Greenspan, May 21, 2006
“The damage from the subprime market has been largely contained. Fortunately, the financial system and the economy are strong enough to weather this storm.”~~Richard Fisher, Federal Reserve Bank of Dallas President, Apr 4, 2007
"All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system."~~Fed Chairman Ben Bernanke, May 17, 2007
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