The Federal Reserve lowered the interest rate ¾ of a point. What was the significance of that move? It makes absolutely no sense to me. Is this a repeat of Richard Whitney's bid of $2.05 for US Steel October 24, 1929? It saved the day and then October 29th all hell broke loose. Maybe it's probably just my imagination running amok.
It’s a little like a fire in a dynamite factory adjacent to a movie theater. If the movie is titled Pearl Harbor, one would marvel at the special effects! The trouble is, it could get a little too real, too fast!
Stay tuned, it's about to hit the fan
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7 comments:
Quite soon the Greater Depression will be upon us. If things turn violent I hope they hang the right people, but it's odds against.
Hi Jim......
Not sure if you saw my last post...but, could you comment on what we should do to be best prepared for upcoming serious problems we are going to have in our economy? What about big purchases? Best to wait on new cars, appliances? I lot of us have never experienced a recession before....
Hi Anon 2:08
Sorry if I missed you.
The basic premise is to pay off your debts and have some spare cash in the bank. There will be layoffs.
Buying a big item right now could tie you to a commitment that could be more than you anticipated. I know of one person already that was surprised by a layoff. They didn't see it coming.
If it gets worse, a lot of people will be selling big ticket items to raise cash. There should be some pretty good deals out there.
Dead right, I think, Jim.
Your right, Jim, at most it gives the markets some false leverage going into next month. Bennie and the Feds came to the rescue again but has anyone noticed that the price of oil and gas is starting on a tear upward?
I have severe doubts if all the economic dominoes stay upright by the end of the year..time to invest in Smith and Wesson.
The Great Depression is already here! Unfortunately most of the Wood-Heads that govern this country don't even know it!
There is only one solution to the problem: make the very people that created the problem (BANKS) pay for it. Therefore what the big guns in our government should do is get up tomorrow and impose all banks to cut mortgage and credit card rates for all customers to a fixed rate (2-3%).
This would create an economic stimulus never seen before and get the country back on their feet. QUICK!
After all they (banks) have been robbing the average American for years with unbelievable credit card rates (30% is not uncommon). If you or me try to lend money at that rate we would go to jail (without passing go). Why don't they?
In Europe (a civilized continent) banks are not allowed to do what they do here!
Who controls what the banks are doing anyway? (NOBODY I GUESS)
Is it because maybe they (and the Oil Industry, and the Medical Companies, and the Insurance companies, control the government?
Just a guess!
Hi Anon 9:25
There is one problem, the banks don't have any money. The money they use is yours and everyone who is a depositor.
The banks won't have to pay a thing. The depositor will loose. It's his money that the banks are messing with.
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