Posted on 02/27/2008 6:05:37 PM PST by SkyPilot
The dollar fell to a fresh record low against the euro on Wednesday as Ben Bernanke signalled that the Federal Reserve is likely to cut interest rates again next month.
The single European currency breached $1.51 after the Fed chairman made it clear that the US central bank remained firmly focused on the risks to growth, in spite of some increase in inflation risk following a run of bad price reports.
The Fed “will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks”, Mr Bernanke told Congress.
(Excerpt) Read more at ft.com ...
Why cut the rate? I say, bump the rate, let the markets tank on the news. I’ve got 25 years to go. I’d prefer to keep inflation somewhere reasonable. Right now, it seems like week over week, we pay more for the same items. A recession won’t be the end of the world.
And he/she stayed at a Holiday Inn Express last night.
If he's running the printing presses like crazy, he can use that money to buy up all the foreign held debt. So how is that a limitation?
He may succeed in staving off a full blown recession until the election, but at what cost? I’m calling him an idiot because his policies are going to lead to hyperinflation. He will eventually have to fix that and things will be worse than ever.
I tell you what. How about selling me your house? I’ll pay you with money I print in my garage.
It looks like “Helicopter Ben” will soon start looking for that helicopter!!!
Isn't that what Volcker had to do the last time we got stuck with stagflation?
What would you suggest we should do and what the Fed is actually going to do?
Helicopter Ben has already TOLD us what he will do. Where is that helicopter???
From what I understand the demand for loans has signficantly decreased, so that would suggest that mortgage rates would be coming down.
I think rates are staying high, or even going up, because for now loans have become something of a luxury item: most people are not in a situation to get new loans, and the few that can can afford to pay a higher price.
The banks are hoping to recoup some of their foreclosure and investment losses with artificially heightened loan rates.
Since they are printing money by the ton lately, maybe they can experiment with a negative interest rate: they will pay banks interest to borrow money from them.
That will allow banks to lend out money to businesses at an interest rate of 0 (or less) and still make a profit!
Those are his words,,,not mine,,,he can't get any clearer than that!!!
what is the PRIME rate right now?..is it as low as I recall of 4%?
It’s 6%.
What would also be good if if they had convoys of white trucks with blue UN insignia that would drive through towns throwing money out of the back ends.
Then we would finally know who to thank for all of this wonderful largesse.
To correct my earlier comment, Helicopter Ben was referring to dropping money out of a helicopter to prevent deflation—not a recession. The point remains-—that he has already told us LOUDLY and CLEARLY what he will do if necessary.
That is PRECISELY what Helicopter Ben has told us he will do. How much clearer does he have to be?
There is nothing mysterious here,,,I never remember any Fed Chief being THAT open about his plans!!!!
P.S. Pres Bush has already made the first “air drop” of cash-—with his new “WEALTH DISTRIBUTION SCHEME”...aka as the new tax rebate.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.