What is Digg?Sponsored by newegg
Missed out on the best electronic deals last Black Friday? view!
newegg.com - Newegg.com's Cyber Monday Promotion has you covered. No Lines, No Crowds; Just Click and Save.
68 Comments
- ranon78, on 11/05/2009, -3/+22And so, the next bubble begins.
- yocouchdigga, on 11/05/2009, -4/+22"recovery", my ass. Have we fixed the underlying causes? This "solution" is temporary, unfortunately.
- bjornski, on 11/05/2009, -1/+13Goes back further than Bush...
- YZBot, on 11/06/2009, -1/+13The dollar is *****.
- Waiting2awake, on 11/05/2009, -5/+16and that political party is the corporate party, which holds both the democrat and the republican party's.
To blame one part, and not the other, shows you to be a lemming. - drmangrum, on 11/05/2009, -1/+9I blame Wilson, FDR, Carter, and Greenspan.
- MrFunStuff, on 11/06/2009, -0/+8"In a statement, the Fed said the U.S. economy had "continued to pick up" since its last meeting in September"
Well, of course the government is subsidizing home building. Their doing it with artificially low interest rates and subsidizing mortgages. Their doing it with tax credits both for home builders and for the individuals that are buying homes. This causes a growth in residential construction, even thou there is already a surplus of houses built.
This will raise the GDP temporally but it's not real growth. - inactive, on 11/06/2009, -4/+11I blame Goldman Sachs!
- BESTenemy, on 11/06/2009, -1/+7I blame the Federal Reserve.
- Barackalypse, on 11/06/2009, -1/+7Nothing says confidence like a near zero interest rate. But hey, its necessary to get the economy more of what it needs, more reckless borrowing! /s
- JohnnySoftware, on 11/05/2009, -0/+6I just worry that the Fed loaning money to banks for practically zero, if that is what the article is saying, will spur high stakes gambling by decision makers in the bank who choose what investments to make.
The rates were cut to nearly zero at the end of last year and it does not look like they are rising. In theory this was supposed to spur US business to invest, create, and hire more. Hard to find signs of this coming to fruition in the news - with some exceptions. Google, Apple; companies that are driven by innovation and have kept pushing ahead, pulled by profits from demand for their goods & services. - ap66crush, on 11/06/2009, -5/+103...2...1... INFLATION!
- korvan504521, on 11/06/2009, -0/+4maybe you should have gotten a fixed rate?
- BoneheadFarker, on 11/06/2009, -2/+6No. The Lost Decade begins...
- sanman, on 11/06/2009, -0/+3The near-zero interest rates are fueling another rise in real estate and commodities - basically, another bubble.
Did you know that over 50% of the US National Debt is short term debt that has to be repaid in less than a year? That means the vortex of debt is getting even more powerful, and will soon force the US to either raise treasury yields, or else monetize that debt by printing more money to pay off the existing debt (something that would cause the value of the dollar to fall) - BESTenemy, on 11/06/2009, -1/+4The words "Fed" and "knows" should never be a part of the same sentence.
- brad3378, on 11/06/2009, -1/+4Honest question:
Do you think that the increase in the price of gold is a bubble waiting to pop?
They advertise gold practically all day long on Fox News.
I just can't see advertisers on honest networks like Fox News lying to the American public to make a quick buck. Fox News wouldn't lead us astray - would they? - redxii, on 11/06/2009, -0/+3Or they'll jack up taxes, that'll really get people wanting to spend.
- dasunst3r, on 11/06/2009, -0/+3Entirely plausible. After Greenspan made the decision to not raise interest rates, people were looking for a better deal, if you will. That "better deal" was these mortgage-backed securities, and there was such a rush for them that mortgage applications went from verified income / verified assets to no income / no assets.
Source: http://www.thisamericanlife.org/Radio_Episode.aspx ...
Given what I've heard, there's plenty of blame to go around, from the government to CEOs to people who bought a house they clearly can't afford and to people who made these loans. - korvan504521, on 11/06/2009, -0/+2you can't base an economy on house building.
unless they're made out of mud and it rains a lot i guess. - wonderchemist, on 11/05/2009, -0/+2I blame the chinese. They invented paper money after all.
- PeppermintPig, on 11/05/2009, -4/+6Keeping the rate low indicates that the Fed knows it's not getting better soon.
- Spindig, on 11/05/2009, -0/+2I blame congress.
- sloonark, on 11/06/2009, -1/+3Sigh. And here in Australia interest rates are going up, up, up, and my home mortgage repayments are going up, up, up.
The financial crisis was nice while it lasted. - brad3378, on 11/06/2009, -0/+2What makes you think that the Barrack Hussain Obama's inflation party is over? You don't really think he's stupid enough to keep home prices low when cities like Las Vegas have literally two thirds of all homeowners owing more money for their homes than they are worth? Obama's (perceived) #1 enemy right now is negative equity in home prices. Invest in anything inflationary and making money will seem as easy as taking candy from a baby.
- brad3378, on 11/06/2009, -0/+2If you borrowed money at 5% back in 2001 to purchase gold, you would have nearly tripled your investment. That sure sounds profitable to me.
Barrack Hussain Obama's socialist money printing policies are giving you the chance of a lifetime to invest. It's a sure thing. So why are you sitting on your ass doing nothing? I've already made enough money this year to pay off my entire engineering degree. There's no reason why you couldn't do the same thing. - brad3378, on 11/06/2009, -1/+3Inflation:
Everybody is calling it a crisis.
I plan on profiting from it.
Why doesn't anybody else? - brad3378, on 11/06/2009, -0/+2Why don't you just invest in gold and profit from it?
- DiggerLater, on 11/06/2009, -1/+3Artificially low interest rates are bad for the economy. They prevent foreign investors from investing in our country, and they make it very easy to get more credit than you should have, which then gets defaulted on. We need an interest rate dictated by the market, not by some secretive illuminati-run mint that can't even withstand an audit. END THE FED.
- DirtyVicar, on 11/06/2009, -0/+2We've moved all manufacturing offshore and sit on our asses watching So You Think You Can Dance... I'm not sure what kind of economic boom we're supposed to be expecting here.
- drmobutu, on 11/06/2009, -0/+2We've become addicted to low interest rates, since 9/11.
It is ironic, that Dubya's economic stimulus was a direct cash payment from the government (Gasp...Socialism!), whereas the Obama admin is bailing out the mega-capitalists, right and left... - Arkons24, on 11/06/2009, -0/+1If the FOMC can keep rates this low without continuing the program during this massive debt creation quantitative easing then something is not right.
- Insightful, on 11/06/2009, -0/+1Why did the banks loan them money? If Mercedes gave out their cars to worthless buyers and then come crying when they cannot make their payments - do you blame the buyers for wanting a Mercedes they cannot afford or should Mercedes take more of a blame since it was in control of the merchandise and decided to give the loan out?
Oh yeah, the next thing you aregoing to say is that the big bad guhbernment forced the banks to give out the loans to unworthy creditors, who also forced the banks to repackage the loans as securties and forced rating companies to rate them as AAA and thus making the banks billions and billions of dollars before it collapsed? - BESTenemy, on 11/06/2009, -0/+1Metaphorically speaking the houses are made of mud and it does rain. The drywall condos built today won't last 3 decades, even with maintenance. The real estate is the new consumable product. Still, it's no way to structure an economy. It's a waste of finite resources.
- PeppermintPig, on 11/06/2009, -0/+1I think they know very well that what they do is for their own benefit at the expense of others.
Enough people can't tell the difference between an asset and a liability that this charade continues on and those same people tend to see inflation as 'necessary' in 'creating wealth'. - Alchemic, on 11/06/2009, -0/+1So true. What will the next bubble be? I've been in sliver since it was 10 bucks and have been quite happy with it. Even with the ups and downs. When it goes down I look at it as on sale. Until I see dot com like mania or house flipping like mania in silver and gold I'll hold on to it. As soon as I hear people in the grocery store talking about how they are making money in mining stocks I am out.
- MatzahMan, on 11/06/2009, -2/+3I think we need more government oversight of the banks if they are going to invest dangerously like they did last time. Lax oversight under Bush caused this bubble to explode and we need to make sure it doesn't grow to that point again.
- brad3378, on 11/06/2009, -1/+2A bunker?
No way man. Overall, I'm very optimistic about our future.
It will still suck to be poor, but I blame that on globalization. It's unrealistic to expect our poor to compete against the poor in India, China, or Korea. However for those of us with good jobs, we can expect our standard of living to increase as the poor get poorer. The poorer people get, the more it is like having our own personal slaves working for us for free! Isn't capitalism awesome? - Spindig, on 11/06/2009, -0/+1Not sure what your point is, but the last 2 years of Bush's administration, the democrats controlled congress. A whole lot of spending went on during that time.
- BESTenemy, on 11/06/2009, -0/+1 The Fed pays interest on the money that the banks deposit with it, and then they wonder why the banks won't lend to regular customers. Potential borrowers in good standing are eliminating their debt to weather the recession, and don't borrow. Those in bad standing can't borrow and why would banks risk lending to them anyway, when depositing their cash with the Federal Reserve guarantees a risk free profit?
Overcapacity is present in everything. There is no driver for jobs. Everyone's downsizing. Most of the time the debt is taken on to assist an expansion and no one is expanding. Risks are high and returns are low. The Fed can print all the money it wants and none of it will make it into the economy. The debts and debt derivatives measure in trillions. No amount of printing can cover them up... and no amount of debt can be resolved by more debt. - brad3378, on 11/06/2009, -0/+1@Waiting2Awake
I'm not following your logic. You expanded on BerateBirther's statement about 1 party wanting America to fail to include both parties wanting America to fail.
We can all agree that Republicans want the Democrats to fail, but why would the Democrats want America to fail? If the Democrats fix the economy, they are virtually guaranteed to trample the Republicans in the next election. If the Democrats fail, they will lose their jobs to Republicans and possibly 3rd parties.
I'm no Democrat, but I just can't see why anybody in power would want to lose their jobs to their rivals. - MrFunStuff, on 11/06/2009, -0/+1I'm not saying Obama's going to stop his inflation polices. I'm saying gold is not getting more valuable, the dollar is just losing it purchasing power.
- MrFunStuff, on 11/06/2009, -1/+2So it's safe to say you built yourself a bunker with food and water and a generator?
I invested in silver bullion & foreign currencies. - sanman, on 11/06/2009, -0/+1Because the Fed is keeping interest rates low in the US, it means that people are taking out low-interest loans in US dollars, and then investing that money abroad in higher-growth markets to make a profit. That in turn is causing the dollar to drop against foreign currencies, which in turn causes foreign investors to pull out more money invested in the US. This puts even more downward pressure on the dollar.
As a result, nobody wants to bet on the dollar by buying long-maturity bonds from the US Treasury. This makes it harder for the US govt to raise money, and forces it to take out shorter-term debt. This places the US govt on ever more precarious footing. - sloonark, on 11/09/2009, -0/+1Fixed rates are for suckers.
- SzaszMan, on 11/06/2009, -0/+1I'm sympathetic to Fed critics and I'm a bit of a silver bug myself, but it's funny how whenever anyone starts using the word "Illuminists" or "Illuminati" my *****-meter starts going off. It's like if you tried to deliver me a serious lecture with a tinfoil hat on your head. Leave the hat at home and just stick with the lecture, already.
- Cputerace, on 11/06/2009, -0/+1Economics in one lesson:
http://jim.com/econ/chap17p2.html
Applied to the federal reserve price fixing credit:
Second paragraph. Replace "Commodity" with "Credit", "Buy" with "Borrow" (as borrowing is buying credit), "price" with "interest rate" (as interest rate is the price of credit), and "producing" with "Savings" (as savings is how you produce credit).
Now we cannot hold the interest rate of (credit) below its market level without in time bringing about two consequences. The first is to increase the demand for (credit) (everyone refinancing a few years back). Because (interest rates) are lower, people are both tempted to (borrow), and can afford to (borrow), more of it. The second consequence is to reduce the supply of (credit) (Credit Crunch anyone?). Because people (borrow) more, the accumulated supply is more quickly taken from the shelves of (banks). But in addition to this, (savings) is discouraged. Profit margins are reduced or wiped out (savings rate is currently less than inflation). The (banks) are driven out of business. Even the most efficient (savers) may be called upon to (save) at a loss. - boston27r, on 11/06/2009, -0/+1If a bank thinks making a loan to a person with no job and no assets (ninja loan) is a good idea, they deserve to lose money.
- MrFunStuff, on 11/06/2009, -1/+2An Inflationary crisis in a country is dangers even for the prepared.
Food Shortages
Rolling Black out
Riots
All these are possible in an inflationary crisis not guaranteed but possible.
-
Show 51 - 69 of 69 discussions
© Digg Inc. 2009
— Content created and posted by Digg users is