Comments for Fed Officials Worried About Recession »
Posted By not2needy 1 year, 9 months ago in Business & FinanceWorries about a deep recession _ not a shallow one _ drove Federal Reserve policymakers to slash a key interest rate last month, meeting minutes show.
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not2needy1 year, 9 months ago
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FTA:
Even as the Fed battled in almost unprecedented fashion to stem a widening credit and housing slump, some members fretted over the possibility of a "prolonged and severe" economic downturn. It was in that environment that they voted _ with two dissents _ to cut its most important interest rate by three-quarters of a percentage point to 2.25 percent. That action capped the most aggressive Fed intervention in a quarter-century.
Oct. 29th, 1929.. Black Tuesday! Looks like that's where we are headed again.. I wasn't around during the depression, but my Mother told me many things about it. I don't want to go there!
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Werewolfxkl1 year, 8 months ago
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THE FED IS THE CHIEF REASON WE ARE WHERE WE ARE, AND ABOVE ALL EX FED BOSS, ALLAN GREENSPAN.
THE REALITY IS THAT THE ECONOMY IS OVERGROWN WITH A LOT OF BAD BETS THAT FAILED!!! NOW WE HAVE A GIGANTIC WORLD ECONOMY WITH ALL KINDS OF CRACKS IN IT...SO TO SPEAK.
THUS IT WILL TUMBLE INTO A PILE OF YOU KNOW WHAT SOON ENOUGH.
STILL, HILLARY CLINTON COULD HAVE THE ABILITY TO CONTAIN THIS PLIGHT, WHEREAS THE REPUBLICANS COULD NOT REALLY CARE LESS BECAUSE THEY HAVE MONEY!!! HAVING THE MAJORITY OF PEOPLE WITHOUT MONEY IS EXACTLY WHAT THEY WANT SO AS TO CONTINUE THE WAR IN IRAQ AND INTO IRAN....KIDS WITHOUT JOBS WILL BE MORE THAN WILLING TO FIGHT...THIS IS EXACTLY HOW WE SIGNED UP SO MANY PEOPLE IN THE SECOND WORLD WAR....IT WAS DURING THE DEPRESSION AND PEOPLE HAD LITTLE ELSE GOING FOR THEM!!!
DO NOT TAKE MY COMMENT LIGHTLY, FOR IF YOU THINK ABOUT IT CAREFULLY YOU WILL SEE IT PRETTY MUCH FITS.
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GHOSTWHOWALKS1 year, 9 months ago
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The Fed is doing all it can to insure a complete collapse of the dollar and being helped by the White House and congress.
Bailing out financial institutions with BILLIONS of fiat money and run away spending; over nine TRILLION debt; the constant raising of the debt ceiling; the constant lowering of the interest rates instead of raising them to strengthen the dollar; have lead to the bubbles that have brought the economy to a stand still.
A depression is coming and due to the lack of physical responsibility and a stable monetary policy it will be worse than the 30's.
Riots in DC will be the lesser of the problems that are knocking at the door.
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cushi1 year, 8 months ago
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Quite possibly because they are slowly but surely converting their ill-gotten war billions in U.S. currency to Euro's, so when the collapse occurs, they'll still be in the money and relatively unaffected by it! After all, we are headed towards a global economy!
In the ensuing panic, they can declare martial law or impose that new directive GW Bush, the man who would be king, got through congress (morons and whimps!!) and he'll continue to rule.
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icono11 year, 9 months ago
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People right not are in a slow burn or a controlled panic about the collapsing US economy. If the economy does not get fixed soon, which I don't think it will for various reasons, this country will definitely polarize so quick along socio-economic lines that it could possibly threaten the fabric/future of the Union as we know it.
It has happened before in other lesser and greater nations/societies and it can happen in ours as well.
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texangelwings1 year, 9 months ago
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not2needy1 year, 9 months ago
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You're welcome tex.
Another issue is the new bankruptcy laws. They make filing a bankruptcy almost impossible for poor people, and with the enormous interest rates people are being charged, NO WAY can they make a dent in their debt.
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AnteUp1 year, 9 months ago
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not2needy ~
I remember how engrossed we were listening to the debate
about that bankruptcy legislation. It was similar to that
feeling the morning after the 2000 and the 2004
elections..........you just couldn't believe we lost.
How could Congress pass it and still be considered the
representatives of the PEOPLE? The new laws only protect the
big guys.
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not2needy1 year, 9 months ago
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When they passed that backruptcy legislation, to only protect big corporations, it was like a heinous crime had been committed against the American people.
HOWEVER, if people don't have jobs and have no money, they can't get blood out of a turnip!
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Will13131 year, 8 months ago
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that was the real prize... the dollar...
why invest slowly.. when you have the game rigged from the beginning...
install forest gump in the WH and a weak dollar policy...
invest in euro futures and short the dollar on the market....
just a few billion which I'm sure the Bush family and their Saudi friends could come up with....invested when Bush was selected as pres.. would have returned over 1600 times the money invested..... 1600
5 billion times 1600.. you do the math.. i don't have a calculator that big.. it's in the TRILLONS...
and the beauty .. no one tracks currency trading and IT'S NOT TAXABLE....
read TRILLIONS.. on just a very few BILLION.. they could have paid for the war OVER AND OVER.. instead it's in SOMEONES pocket...
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jordan111 year, 8 months ago
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When they passed that backruptcy legislation, to only protect big corporations, it was like a heinous crime had been committed against the American people.>>>>
And even after doing that, Americans voted for the fools, or worse, didn't vote at all. Maybe this is the crisis that is needed to force Americans to educate themselves on important issues that affect THEM. Personally, I'm sick and tired of paying for their ignorance.
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AnteUp1 year, 8 months ago
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not2needy ~
No - and they can't be putting beaucoup bucks in the
old campaign coffers like the favored few either - eh?
I get SO angry when I go through the logic. I've got
one vote - and a great big CEO has only one vote.
Ah, it's a level playing field, No? No - but why?
Because they have the power of their fortune to BUY the
candidate some votes. So, realistically, if we weren't
lead by their crummy ad campaigns and glossy flyers, that
their money makes possible,(and throw in a few journalists
on the payroll too) to decide our choice,we could level the
playing field. It's not easy - "It's hard work" - lol,
but it is the only way to regain OUR power.
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quackpot1 year, 8 months ago
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The current proposals to help Wall Street tycoons become even more wealthy make the laws to which AnteUp refers seem mild.
Currently, in response to the irresponsible actions of the financial community that have placed us in this mess, the Fed and Mr. Paulson (Secretary of the Treasury) are pumping about $200 billion in newly printed money directly into the pockets of not only the Banks, but also large Wall Street firms such as J.P. Morgan (technically a loan in exchange for worthless Wall Street paper; the Fed usually exchanges newly printed money for Treasury Notes, and only deals with banks).
Mr. Paulson then goes on to propose the creation of a new financial system that will REDUCE oversight and give the Wall Street tycoons even more freedom to fleece the unsuspecting.
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flyonthewallzz1 year, 8 months ago
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It is hard for me to figure this stuff out, and I could be wrong.
But just for yucks: it looks like if you took the $200 billion and let 2 million folks refinance $100 thousand of their mortgage from %5 to %2.5, Their payments would drop by $141.70 a month. This would amount to a $3.4 billion per year economic stimulus package for 30 years.
Can this be right?
$200 billion / $100 thousand = 2 million
30yr Mortgage monthly payments @ %5 = $536.82 @ %2.5 = $395.12 difference $141.70
$141.70 X 2 million =$283 million per month
$283 million X 12 months = $3.4 billion (x 30 years = $102 billion)
Regular folks pay more than 80 percent of the government receipts and contribute about the same to the GDP.
I think the stimulus package cost us about $150 billion and we get about $100 a month out of it.
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flyonthewallzz1 year, 8 months ago
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Call me a Socialist, and give it to some punk in a cubicle to buy Euros with.
He will make about $30 billion in a year.
http://realestate.yahoo.com/calculators/payment...
http://finance.yahoo.com/currency/convert?from=...
Please check my numbers.
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flyonthewallzz1 year, 8 months ago
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I know, Amazed it is a total moonbat concept that ignores the administrative costs.
But I think the $200 billion is going to securities traders at that rate, not banks.
I also think that many of the Sub-Prime borrowers are paying 25 percent on there paper.
That means that after they are tickled and amortized there monthly payments can hit $2 thousand on a $100 thousand dollar loan.
Pretty easy to see why traders gobbled them up and why folks are having a hard time paying them.
Sure the blame can be spread across the board, but I used to get a lot of fax's at my office to refinance and they where very deceptive.
I was just trying to get some perspective.
(Propeller does inconsistant stuff with %)
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canadianrancher571 year, 9 months ago
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Many years ago I read a short story called "The Day The Bubble Burst" When I think back to this artical and compare it to the artical I just read I think that the similarities are frightning, In the crash of 29 there was a slow meltdown as the larger banks tried to maintain order in the markets but eventually the collapse happened. We are seeing a piture that is close to the same thing today the larger banks and even the fed is trying to create a stable market but eventually I think that the blood will run.
I have the feeling that this is sort of like a situation where someone has dropped a glass and we are all watching the glass fall in slow motion hoping that when it hits the floor it will not smash into a thousand pieces.
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not2needy1 year, 9 months ago
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Well said. It's scary as hell, but the cons don't seem to think it's important, they're too busy asking for more of the same! I don't know what it's going to take for them to see/understand the seriousness of our situation.
For most of them, it's all about the game of winning elections, and winning at all costs. Nothing more, nothing less.
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cowboygrandpa1 year, 9 months ago
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n2n:
You remember a song with the phrase "Running with the Devil."
Well thats what they are doing. This is world wide and will affect all of the planet.
Watch as the different leaders try to fix the problem with short lived solutions. There will be panic world wide and people will be willing to turn to anyone to fix the problem.
In will step a man with a plan that will seem to work. But everyone will have to do what he says. Welcome to the age of the anti-christ. They've been working at it for years it's coming.
Laugh if you will but watch and see if it doesn't happen.
Look at all the fouled up leaders we have in the world today. They can't even stop a Bin Laden because they are to obsessed with money and power.
We haven't learned the wealthy and the politicians never have our best interests at heart only their own.
They are so dumb they will continue until they wipe themselves out as well.
Good story
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amazed1 year, 8 months ago
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unfortunately, there is some truth in what you say, N2N, but if you think that the democrats are in it for pure and noble reasons, you are truly deluded. If this were true, some serious changes would have been at least attempted once they gained control of Congress.
I don't believe that the majority of the average people -- conservative OR liberal are happy with the present economy. And, if you think that this economy is benefitting all conservatives, please pass that joint...
Most people are in agreement that there are serious problems -- with the economy, the government and society, in general -- we just disagree on the solutions.
As long as you, and those who agree with you, insist that anyone like me, who disagrees with you is a worthless, selfish, nasty bigoted piece of trash, we will NEVER come to a solution. Who would listen to anything such a person would say?
If you won't listen to any other view, you're part of the problem, not the solution.
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flyonthewallzz1 year, 8 months ago
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Amazed:
"Most people are in agreement that there are serious problems -- with the economy, the government and society, in general -- we just disagree on the solutions"
This part of your comment would have sent me searching for the super good button.
I think a discussion on what we agree on may be enlightening.
And the specifics of our disagreement could be interesting.
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gamahuche1 year, 9 months ago
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"I have the feeling that this is sort of like a situation where someone has dropped a glass and we are all watching the glass fall in slow motion hoping that when it hits the floor it will not smash into a thousand pieces."
Nice image, CR!
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AnteUp1 year, 8 months ago
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gamahuche ~
Oh for most of us it is going to smash. Our curiosity is
more like - hope the fragments don't hit me and mine!
Watch political alignment shift as the negative effects
become a very personal matter for many to deal with...
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HomerJS49Comment removed: Abusive
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crespi1 year, 8 months ago
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The Fed is a malfeasant private bank.
I agree with the blogs that say we should take our money printing back into the United States Treasury.
President Kennedy was pushing for that when he was killed.
Some say cutting off the gravy train of draining America's money from the people into the pockets of the super-wealthy caused the super-wealthy to kill him.
Would folks who can buy countries or start global wars for profit have a man killed that is going to pull their hand out of the till? Nawww...
Would they?
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Tadpole511 year, 8 months ago
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There is an ecomomical disaster, we have no jobs to go to. Illegal aliens taking a lot of them ,other country's getting them also. Out Sourceing also. And 300.00 check from government will not buy a 100 gallons of gas. Our leaders have sold us out to line their own pockets. American life as we have known it is a thing of the PAST !!!
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markmawn21 year, 8 months ago
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Wow, this is all hype according to my local Real Estate associations. All good news will bounce back this Spring and house prices will once again be on the rise, and there will be pretty pink ponies for everyone. Ain't no bubble here.
Paint it pink, put a sign on it that reads "not my problem" and people will never see it.
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markmawn21 year, 8 months ago
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The bigger answer to the already big question can be found here.
We no longer produce what we consume. We are Post-Industrial.
http://larouchepub.com/lar/2006/webcasts/3318ap...
Please download this free ebook, written in 1841:
"Extraordinary Popular Delusions and the Madness of Crowds"
http://www.gutenberg.org/etext/636
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AnteUp1 year, 8 months ago
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markmawn2 ~
Hah! You should have seen the upbeat article in my
Sunday paper submitted by the Pres.of the area's Chamber
of Commerce. You might have called it delusional, and
that would be accurate - but it was deliberate. Why?
Why? Did I grow up thinking the Chamber of Commerce
actually stood for something respectable? This is a
mid-life shock for me. Did everybody else already know?
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fitzchief1 year, 8 months ago
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We have done all of this to ourselves.
We put an oil man in the white house. The vice president has direct affiliation with the oil industry. Condi is an ex oil executive, and the list goes on and on.
The banking industry is evidently run by a bunch of idiots that push the domestic lending policies of this administration.
I mean,come on. Is there anyone out there who thinks that there is some conceivable way that a person who makes 50 thousand dollars a year can pay for a home that cost 300 thousand dollars. No Way!!
They need to get out of their own mess and stop asking tax payers to bail them out. And the same goes for those idiots that borrowed the money knowing that they couldn't pay it back.
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AnteUp1 year, 8 months ago
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Yeah - and they'll be doing better soon. Plans for some
huge natural gas pipeline from the USA, then through -
ummmm - Saskatchewan and Alberta(?) on it's way through
Alaska to Denali. Bush and Canada are getting along fine!
Buy a Sierra Club calendar and save the pix - you're going
to need them in years to come.
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amazed1 year, 8 months ago
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yes, we are in a recession. yes, there are some basic problems with the economy that must be addressed. yes, fuel prices are ridiculously high (but, nowhere near as high as in Europe, yet).
Hey, folks! Recessions happen -- cyclically and regularly. We are due. No doubt, recessions suck, but you just have to hang on through them and hope you come out okay on the other side.
Now, there are two courses that we can take. We can try to address the systemic problems in our economy, so that when (yes, when) we emerge from this recession, we have mechanisms in place to make our economy strong again. Or, we can sit around whining about how the sky is falling and it's all the republicans, conservatives, liberals, democrats, pick your evildoer, 's fault.
The choice is ours.
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simonsez1 year, 8 months ago
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The economy is a lot like herding cats ... you do what you can to try to keep it moving forward and that's all the Feds are trying to do.
If you have any money to work with, it's an excellent time to invest. The old saying "buy low - sell high" still works, but it means you have to buy when things look scary.
The over-reaction on banks has been significant, but there are better choices out there.
If you've seen the little fish that swarm around a whale shark's mouth to eat his crumbs, the market is like that. Be one of those little fish and when the whale shark (government) makes a mistake, take advantage and grab some crumbs.
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