- This topic has 36 replies, 11 voices, and was last updated 16 years, 8 months ago by bsrsharma.
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August 15, 2007 at 10:31 AM #75772August 15, 2007 at 11:56 AM #75696Stu949Participant
How appropriate, and error occured when I tried to send the following:
Since you guys are “pumping” money into the jittery financial system, how about “pumping” some money my way. My wife and I make $250,000 a year, pay $90,000 a year in taxes, yet we can’t buy a suitable home. How about giving us $200,000 for a down payment on a home so I can get into a 30 year fixed. After all, we’re merely looking to buy a home that we can live in – not to flip or profit. Thanks for your time.
August 15, 2007 at 11:56 AM #75813Stu949ParticipantHow appropriate, and error occured when I tried to send the following:
Since you guys are “pumping” money into the jittery financial system, how about “pumping” some money my way. My wife and I make $250,000 a year, pay $90,000 a year in taxes, yet we can’t buy a suitable home. How about giving us $200,000 for a down payment on a home so I can get into a 30 year fixed. After all, we’re merely looking to buy a home that we can live in – not to flip or profit. Thanks for your time.
August 15, 2007 at 11:56 AM #75817Stu949ParticipantHow appropriate, and error occured when I tried to send the following:
Since you guys are “pumping” money into the jittery financial system, how about “pumping” some money my way. My wife and I make $250,000 a year, pay $90,000 a year in taxes, yet we can’t buy a suitable home. How about giving us $200,000 for a down payment on a home so I can get into a 30 year fixed. After all, we’re merely looking to buy a home that we can live in – not to flip or profit. Thanks for your time.
August 15, 2007 at 1:45 PM #75755daveljParticipantThe only thing that irritates me about what the Fed is doing right now – providing liquidity, that is – is that the market-based Fed Funds rate has often been below 5% during this liquidity dump. The policy rate is 5.25% and, in theory, there should be some small “penalty” for having to avail oneself of the discount window. Consequently, the market-based Fed Funds rate should be closer to 5.50%. So, while I think it certainly fits the Fed’s job description to provide liquidity via the discount window, it shouldn’t be providing so much liquidity that the market-based Fed Funds rate is 25 bps BELOW the policy rate. This bothers me a little bit.
August 15, 2007 at 1:45 PM #75870daveljParticipantThe only thing that irritates me about what the Fed is doing right now – providing liquidity, that is – is that the market-based Fed Funds rate has often been below 5% during this liquidity dump. The policy rate is 5.25% and, in theory, there should be some small “penalty” for having to avail oneself of the discount window. Consequently, the market-based Fed Funds rate should be closer to 5.50%. So, while I think it certainly fits the Fed’s job description to provide liquidity via the discount window, it shouldn’t be providing so much liquidity that the market-based Fed Funds rate is 25 bps BELOW the policy rate. This bothers me a little bit.
August 15, 2007 at 1:45 PM #75874daveljParticipantThe only thing that irritates me about what the Fed is doing right now – providing liquidity, that is – is that the market-based Fed Funds rate has often been below 5% during this liquidity dump. The policy rate is 5.25% and, in theory, there should be some small “penalty” for having to avail oneself of the discount window. Consequently, the market-based Fed Funds rate should be closer to 5.50%. So, while I think it certainly fits the Fed’s job description to provide liquidity via the discount window, it shouldn’t be providing so much liquidity that the market-based Fed Funds rate is 25 bps BELOW the policy rate. This bothers me a little bit.
August 15, 2007 at 1:49 PM #75761SHILOHParticipantThey get the money by printing it. It’s all on paper. And then we go deeper into national debt which rests on the backs of taxpayers. (ie…there is no “gold” reserve) Maybe they consider our national parks as their reserve?
August 15, 2007 at 1:49 PM #75876SHILOHParticipantThey get the money by printing it. It’s all on paper. And then we go deeper into national debt which rests on the backs of taxpayers. (ie…there is no “gold” reserve) Maybe they consider our national parks as their reserve?
August 15, 2007 at 1:49 PM #75881SHILOHParticipantThey get the money by printing it. It’s all on paper. And then we go deeper into national debt which rests on the backs of taxpayers. (ie…there is no “gold” reserve) Maybe they consider our national parks as their reserve?
August 15, 2007 at 1:53 PM #75764kewpParticipantAt this point, I don’t think anyone is trying to save the SD housing market.
The Fed is more interested in preventing bank failures and the resulting panic.
August 15, 2007 at 1:53 PM #75880kewpParticipantAt this point, I don’t think anyone is trying to save the SD housing market.
The Fed is more interested in preventing bank failures and the resulting panic.
August 15, 2007 at 1:53 PM #75884kewpParticipantAt this point, I don’t think anyone is trying to save the SD housing market.
The Fed is more interested in preventing bank failures and the resulting panic.
August 15, 2007 at 2:28 PM #75785lindismithParticipantThey get the money by printing it. It’s all on paper. And then we go deeper into national debt which rests on the backs of taxpayers. (ie…there is no “gold” reserve) Maybe they consider our national parks as their reserve?
aaah, I see. And this is where inflation comes in.
But weren’t they worried about inflation before this current melt-down, and that’s why they were holding interest rates steady?
Won’t this require that they raise interest rates rather than lower them? If so, could they also lower them to create some kind of stability? I’m confused.
August 15, 2007 at 2:28 PM #75903lindismithParticipantThey get the money by printing it. It’s all on paper. And then we go deeper into national debt which rests on the backs of taxpayers. (ie…there is no “gold” reserve) Maybe they consider our national parks as their reserve?
aaah, I see. And this is where inflation comes in.
But weren’t they worried about inflation before this current melt-down, and that’s why they were holding interest rates steady?
Won’t this require that they raise interest rates rather than lower them? If so, could they also lower them to create some kind of stability? I’m confused.
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