 |
|
|
|
 |
jerZ07002
Supreme tranceaddict
Registered: Dec 2006
Location:
|
|
|
| quote: | Originally posted by atbell
You guys are both partly right.
jer has a good understading of the mechanisim by which the fed operates but Krypton is correct in saying that the fed is being far to interventionist right now.
The understanding of how the fed influences debt is also a bit prickly. Bernake is influencing debt through his over interventionalist policies. The release of money is causeing existing debt to get smaller as inflation sets in due to the increased supply of money. He's also encouraging people to hold debt by lowering the intrest rates so much.
This is just plain dumb. The open market opperations of the fed are hitting people who saved thier money instead of investing stupidly in things like realestate.
If I'd borrowed to buy a house I could never afford and just started to realize it now, my mis-calculation of risk would be softened by the lower intrest rates and the fact that my real debt is being eroded by inflation.
If I'd worked hard and saved my money to put a bigger down payment on the house I could afford I'd be screwed. My wages would be getting hit as they don't rise as fast as inflation, the money that I'd saved in the bank wouldn't be worth as much thanks to inflation, and it wouldn't be making as much thanks to dropping intrest rates.
This type of federal reserve reactionary policy is encouraging exactly the wrong type of behavior. It is keeping people who don't know how to calculate risk afloat while punishing those who erred on the side of caution.
Almost everything the fed has done in the past 4 months has been politically motivated imo. The republicans know that the only way they stand a chance is to make sure the economy is looking good come November. That's why Bernake has been tasked with the short term goal of bringing the books in order. |
that's a huge ongoing debate...how involved should the fed be. Personally, i think the fed needs to be involved in the market to soften downturns and regulate booming times. I don't think the fed has intervened too much, but that's all a matter of opinion. I certainly agree there is some political pressure to raise/lower rates, especially since bernake is up for appointment soon.
|
|
Mar-14-2008 05:02
|
|
|
 |
 |
jerZ07002
Supreme tranceaddict
Registered: Dec 2006
Location:
|
|
|
| quote: | Originally posted by Krypton
How's the FS spreadsheet working out for you? |
i've been so busy with work and school i don't have much free time to research investments. probably in the summer. i like trading options, so i'll park some money in those, but as you already know, you need to understand the underlying asset to properly value an option. so it will come in handy in the future.
|
|
Mar-14-2008 16:16
|
|
|
 |
 |
Capitalizt
Supreme tranceaddict
Registered: Feb 2005
Location: USA
|
|
|
| quote: | Originally posted by guerra-monstru
So is BSC a good buy right now? |
consider it a dice roll.... It could break down to $20 or pop up to $40.
|
|
Mar-14-2008 21:27
|
|
|
 |
 |
Capitalizt
Supreme tranceaddict
Registered: Feb 2005
Location: USA
|
|
|
Mar-14-2008 22:51
|
|
|
 |
All times are GMT. The time now is 16:06.
Forum Rules:
You may not post new threads
You may not post replies
You may not edit your posts
|
HTML code is ON
vB code is ON
[IMG] code is ON
|
|
|
|
|
|
Contact Us - return to tranceaddict
Powered by: Trance Music & vBulletin Forums
Copyright ©2000-2026, Jelsoft Enterprises Ltd.
Privacy Statement / DMCA
|