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90 Comments
- richness, on 12/12/2007, -7/+35...and the dollar will continue it's plunge into the abyss. Thank you Fed. Can't we all see the forest through the trees?
Inflating Wall Street, and making it easier to borrow, will only accelerate the train called recession. - blitzer, on 12/12/2007, -6/+30So many economists on digg.
- Winboloer, on 12/12/2007, -2/+23Cliff? I don't see any cli....
- PFinn, on 12/12/2007, -3/+23short term fixes instead of long term solutions FTW!! /sarcasm
And people still wonder why our economy is going to *****...maybe this will give everyone a chance to borrow money to buy a house even when they know they wont be able to afford the loan payments in a year....oh wait, seems like that is part of the reason we are in this mess in the first place. People making stupid financial decisions that they could never ever truly afford, and then waiting for the Government to bail them out, while everyone around them gets ***** - bratpack8, on 12/12/2007, -0/+12First there's the boom (artificial), then the bust. Unfortunately, Bush is trying to delay the big bust until after he gets out of office. But it's coming no matter what...
- spyd3rweb, on 12/12/2007, -2/+11Time to get rid of the Federal (Not really federal) Reserve, and issue some real currency yet?
- DucoNihilum, on 12/12/2007, -5/+12They've been causing inflation, forcing me to lose money since before I was born....
- quickjack, on 12/12/2007, -0/+6Maybe #4 will be better received
- inactive, on 12/12/2007, -0/+6Meanwhile the stock market dropped 500 points in about 3 hours today.. yeeesh
- PistolSO, on 12/12/2007, -3/+9Why doesn't the Fed realize that cutting interest rates is only going to make this mess worse. Interest rates should be higher, so we actually have an economy after this plays itself out, and high interest rates helps those who save their money.
- MyBacchanalia, on 12/12/2007, -2/+8The Fed is a privately owned bank. It is a business. It exists to make money. Why would it be on our side?
- williamdyer, on 12/12/2007, -0/+6It isn't even temporarily helping the dollar. The dollar will plummet farther and faster with more interest rate cuts. Stocks may tick up, but that happens because stocks are an asset. When the currency the asset's price is measured in falls, the nominal price goes up. But the value stays the same and you get taxed on an illusory gain.
- soccerman90, on 12/12/2007, -2/+8Someone please tell me if im wrong
By lowering the interest rates, isnt the government only temporarily helping the dollar. When they lower the rates, it will make the stocks i own jump a dollar, but wont it only hurt us in the long run? - DucoNihilum, on 12/12/2007, -4/+9This only helps in the short term- in the long term we're screwed.
- inactive, on 12/12/2007, -0/+5I wonder how many realize the FED is a private bank and there is NO RESERVE? LOL!
- poopz, on 12/12/2007, -3/+8:announces he is an economic expert, tells everyone what this REALLY means, calls everyone else idiots:
- Gabberwok, on 12/12/2007, -2/+6Yeah, stock brokers thought that .25 wasn't enough - they were hoping for a full half point. Most of the value of the stock market right now is nothing but wishful thinking...
- mikemil828, on 12/12/2007, -2/+6Money inherently devalues over time as the economy grows. As the economy grows, more money is needed to sustain it, thus inflation. Gold or Fiat, thats just the way things are. The only way to stop inflation entirely is to stop economic growth.
- bratpack8, on 12/12/2007, -0/+4Go here for an explanation of what happens when the rates are cut.
http://www.mises.org/story/2728 - williamdyer, on 12/12/2007, -1/+5Stagflation.
- yodaj007, on 12/12/2007, -0/+3The Fed was created BEFORE the Great Depression. The Fed was created in 1913, and the GD happened in the 20's and 30's. Open a damn history book before you pretend to know what you're talking about.
- l00s3r, on 12/12/2007, -0/+3Who is Ludwig Von Mises?
- bratpack8, on 12/12/2007, -2/+5Yeah TJ, time to put down the crack pipe. Since our dollar was taken off the gold standard, the spending (and inflation) has gotten worse. It's all coming to a head. My advice, don't hold dollars.
- DucoNihilum, on 12/12/2007, -0/+3Well, it does help the economy slightly in the short run- but the long run effects of it are comparatively bad.
- res8qr6m, on 12/12/2007, -1/+4While the majority gets screwed, some certain individuals will be reaping the rewards...
- bratpack8, on 12/12/2007, -0/+2There were booms and busts before the Fed because there was manipulation by the government in monetary polices. A great book to read is Murray Rothbard's "History of Banking in United States." It's available for free as a pdf at mises.org.
- mikemil828, on 12/12/2007, -0/+2There isn't really any 'real' currency anymore as diggers like to put it, everything is fiat now, to the point that many countries have no problem letting the Fed keep their gold for them.
- mikemil828, on 12/12/2007, -0/+2Congratulations you know more about the fed then most diggers here do. The Federal Reserve has two goals mandated by law: Price Stability and Full Employment. However focusing on Price Stability has a somewhat negative effect on employment, and likewise focusing on employment has a somewhat negative effect on Price Stability, by lowering interest rates, they are trying to aim for full employment (lower interest rates means more companies can afford to grow, which means more jobs), which will be more helpful in the coming recession than stable prices (people can buy more, businesses get more revenues, businesses grow, more people are hired, etc. Eventually the economy gets itself out of the recession thanks in part to the thankless Fed.)
- yodaj007, on 12/12/2007, -0/+2Because the Fed *wants* to make it worse. Watch "The Money Masters"
- DucoNihilum, on 12/12/2007, -1/+3High interest rates give you an incentive to save- cutting interest rates inflates the economy and hurts those who save (They actually lose money_)
- williamdyer, on 12/12/2007, -2/+4When did M3 become a secret? THAT is where to put the blame.
Bush: Worst. President. Ever. - WinGeek, on 10/15/2008, -2/+4This is the problem with digg: The 'expected' news already happened 7 hours ago!
- Christ0s, on 12/12/2007, -0/+2its like the 70s all over again.
- inactive, on 12/12/2007, -0/+2Ha ha at least I have stocked up on food and weapons. The end is near!
- SouthsideIrish, on 12/12/2007, -0/+2And if you want to keep it somewhere else they will just steal it. No hope reallly.
- Pssdoff, on 12/12/2007, -0/+2http://tinyurl.com/27stbw
You don't need to be an economist to understand the big picture.
http://lewrockwell.com - yodaj007, on 12/12/2007, -1/+3That one went over your head at mach 3.
- blitzer, on 12/12/2007, -0/+2Without the bad hair
- mikemil828, on 12/12/2007, -0/+2Actually this guy knows what he's talking about, diggers, if they cut back in May, they wouldn't have needed such a huge cut now, not that you guys care.
- Richandler, on 12/12/2007, -0/+2Title should read Fed plans to print billions more lowering the value of you dollars.
- yodaj007, on 12/12/2007, -0/+2I never even mentioned Bush and his cronies. The Fed was established in 1913, as you said. Bush wasn't even around. WTF are you talking about?
- bratpack8, on 12/12/2007, -0/+1It is a slight benefit for those with fixed rate mortgages, but it doesn't offset how much they get hurt otherwise, such as rising prices, etc.
- mciampa1214, on 12/12/2007, -0/+1I'm almost positive that every member of the FED's board of governors has a doctorate in economics and years of monetary policy experience. Conversely, based on your statement I highly doubt you've taken much more then intro level courses.
- Makisupa, on 12/12/2007, -1/+2If by intelligently you mean take a theoretical framework that assumes no transaction costs or externalities, and thus never is prone to market failure and applies it to a world with transaction costs and externalities, then I guess he is intelligent. Free-market is a good first cut at policy, but it is no more than a theoretical framework to start at - it is not the end all be all.
- icechest, on 12/12/2007, -0/+1Inflation here we come!
- yodaj007, on 12/12/2007, -0/+1WTF?
- logosx1, on 12/12/2007, -0/+1Indeed, they are all well indoctrinated with Keynesian thinking . . . which has been chiseling away out our national solvency for three generations now.
- Azuroth, on 12/12/2007, -0/+1http://www.google.com/search?q=wind+turbines
- youareretarded, on 12/12/2007, -0/+1Can anyone explain why interest rates have gone up today (for home loans)? When the feds cut the rates shouldn't that mean that interest rates on loans should also go down?
Or does the affect of the cuts take some time to actually have an affect on home loans? - mikemil828, on 12/12/2007, -0/+1http://research.stlouisfed.org/fred2/series/M1
Yep, the fed REALLY is printing a crap load of cash atm -
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