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LA_Renter.
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August 10, 2007 at 4:36 PM #73130August 10, 2007 at 4:45 PM #73010
Anonymous
GuestThere is just way too much debt out there. It has to correct. Just the amount of money that the European central bank had to use to stabilize their overnight rates – like 60% more than they did on 911 – should be an indication that there are serious troubles. That’s not even mentioning how much money our fed put in as well as how much the central banks of other countries had to put in as well.
August 10, 2007 at 4:45 PM #73129GuestThere is just way too much debt out there. It has to correct. Just the amount of money that the European central bank had to use to stabilize their overnight rates – like 60% more than they did on 911 – should be an indication that there are serious troubles. That’s not even mentioning how much money our fed put in as well as how much the central banks of other countries had to put in as well.
August 10, 2007 at 4:45 PM #73136GuestThere is just way too much debt out there. It has to correct. Just the amount of money that the European central bank had to use to stabilize their overnight rates – like 60% more than they did on 911 – should be an indication that there are serious troubles. That’s not even mentioning how much money our fed put in as well as how much the central banks of other countries had to put in as well.
August 10, 2007 at 5:07 PM #73022HereWeGo
Participantxbox-
I believe you are correct.August 10, 2007 at 5:07 PM #73149Participantxbox-
I believe you are correct.August 10, 2007 at 5:07 PM #73141Participantxbox-
I believe you are correct.August 10, 2007 at 5:27 PM #73043LA_Renter
ParticipantXbox, I guess “pawn broker” would be the best analogy. After all of this I wonder if these guys are going to come out and say “Subprime is Contained” LOL. In all the chaos something that got overlooked is that the Freddie / Fannie bailout story got the ax today.
“U.S. agency rejects Fannie Mae’s request for larger loan portfolio”
I would say that overall we are in a huge mess. There is still possibly hundreds of billions of dollars of paper sitting out there that is actually worth zero. You are going to see alot more of FED band aids and gauze and body cast….etc over the next few months. Surprisingly the dollar held up today (well it didn’t fall from its record low level) but don’t count on that continuing. All of this could lead us down the path of a dollar crisis. IMHO.
August 10, 2007 at 5:27 PM #73170ParticipantXbox, I guess “pawn broker” would be the best analogy. After all of this I wonder if these guys are going to come out and say “Subprime is Contained” LOL. In all the chaos something that got overlooked is that the Freddie / Fannie bailout story got the ax today.
“U.S. agency rejects Fannie Mae’s request for larger loan portfolio”
I would say that overall we are in a huge mess. There is still possibly hundreds of billions of dollars of paper sitting out there that is actually worth zero. You are going to see alot more of FED band aids and gauze and body cast….etc over the next few months. Surprisingly the dollar held up today (well it didn’t fall from its record low level) but don’t count on that continuing. All of this could lead us down the path of a dollar crisis. IMHO.
August 10, 2007 at 5:27 PM #73163ParticipantXbox, I guess “pawn broker” would be the best analogy. After all of this I wonder if these guys are going to come out and say “Subprime is Contained” LOL. In all the chaos something that got overlooked is that the Freddie / Fannie bailout story got the ax today.
“U.S. agency rejects Fannie Mae’s request for larger loan portfolio”
I would say that overall we are in a huge mess. There is still possibly hundreds of billions of dollars of paper sitting out there that is actually worth zero. You are going to see alot more of FED band aids and gauze and body cast….etc over the next few months. Surprisingly the dollar held up today (well it didn’t fall from its record low level) but don’t count on that continuing. All of this could lead us down the path of a dollar crisis. IMHO.
August 10, 2007 at 5:56 PM #73174SD Realtor
Participantxbox your comments make alot of sense. Thanks for the clarification…
SD Realtor
August 10, 2007 at 5:56 PM #73054Participantxbox your comments make alot of sense. Thanks for the clarification…
SD Realtor
August 10, 2007 at 5:56 PM #73182Participantxbox your comments make alot of sense. Thanks for the clarification…
SD Realtor
August 10, 2007 at 8:45 PM #73128Tone
ParticipantXbox, I think you are right also.
I’m a complete novice and I’ve been trying to wrap my around what the Fed did today. I’ve got a great deal of money (relatively I’m sure ;)) tied into CDs while I wait to jump back into the housing market, and I don’t want my dollars to become worthless (which I fear is happening).
If I understand correctly, the Fed is just acting as the bank of last resort. No one in the upper echelons of finance knows how much risk is involved with bonds and hedge funds; how much toxic junk is embedded in which particular funds and who will be the bag holder on these funds. There is fear and as a result, the banks don’t trust each other’s credit, so everything is locking up. The Fed is stepping in to take on some of the risk by purchasing some debt, taking on risk, to get things moving. IF I understand correctly.
But the main question I have is this: Where is the Fed getting its money? Is it money in reserve or are they just cranking up the presses? If they’re cranking up the presses then the dollar just lost some value. But Bernake said his main concern is inflation (if you can believe anything the power brokers say).
Does anyone know if this will kick up inflation?August 10, 2007 at 8:45 PM #73255ParticipantXbox, I think you are right also.
I’m a complete novice and I’ve been trying to wrap my around what the Fed did today. I’ve got a great deal of money (relatively I’m sure ;)) tied into CDs while I wait to jump back into the housing market, and I don’t want my dollars to become worthless (which I fear is happening).
If I understand correctly, the Fed is just acting as the bank of last resort. No one in the upper echelons of finance knows how much risk is involved with bonds and hedge funds; how much toxic junk is embedded in which particular funds and who will be the bag holder on these funds. There is fear and as a result, the banks don’t trust each other’s credit, so everything is locking up. The Fed is stepping in to take on some of the risk by purchasing some debt, taking on risk, to get things moving. IF I understand correctly.
But the main question I have is this: Where is the Fed getting its money? Is it money in reserve or are they just cranking up the presses? If they’re cranking up the presses then the dollar just lost some value. But Bernake said his main concern is inflation (if you can believe anything the power brokers say).
Does anyone know if this will kick up inflation? -
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