Fed to the rescue, lol

[moonman]

Ben Bernanke spent 35 billion today, not bad for a morning shopping spree. What he bought are mortgage backed bonds. He did this because Bush won't allow Fannie Mae & Freddie Mac to perform the traditional role each agency serves.

It ain't enuf but it did help prevent another mid-triple digit meltdown in the DJIA. I give him credit for buying a little time but it doesn't change my October prediction for a run on the USD.

Remember children, the issue is the USD, everything else is a sympton.

[kres24GT]

Big government always comes to the rescue, that is how they buy votes.

[disrupter]

This short term stuff is essentially a narcotic designed to dull people's awareness of current problems.

What it WILL substantively come down to is whether the Fed will swing to let inflation run loose by lowering rates & pander to all these poor decision makers, weakening the US dollar further,

OR hold firm against inflation pressures.

Dollar damage for political popularity or monetary discipline?

[Bill]

It's been a crazy thing to watch.

I'm looking forward to next week's stock market behavior.

[moonman]

G'day Bill,

This week is retail earnings report week. Walmart and Home Depot will be most interesting as will the mid and high end retailers. Also do in is the Consumer Confidence report.

China Central Bank announced over the weekend it will not be 'dumping' USD's contrary to its own actions of recent months and statements from the central gubment.

Most important though is the Japanese Economic report and its balance of payments. Already leaked is the expectation that the rate of growth for the Japanese economy, the world's 2nd largest, is slowing.

[disrupter]

Get this headline:

How US home owners caused global market tremors?!?!
http://news.yahoo.com/s/afp/20070812/bs_afp/marketsfinanceworldbackground;_ylt=AvYRDe88lsY81lt JADZOCACs0NUE

Blame the inexpert homeowners & not the Expert GREEDY bankers who knew they were irresponsibly cranking out risky loans.

Blame the victims instead of the criminals.

[Bill]

Blame the victims instead of the criminals.

That's standard rhetorical tactics for the elites.

Altho, you could easily say there's plenty of blame to go around.

And the blame will land on a lot of doorsteps if the central banks can't inflate their way out of this.

Or deflate, as the case may be.

[moonman]

Victims? You mean the people who bought more house than they could afford and not only that but need annual appreciation of about 6% if they ever had any hopes of paying it off? You mean those greedy little useless eaters at the bottom of the housing chain?

And how 'bout those greedy bankers who spend their lives with one foot in jail. OR the investment, who bought in through conduits the banks in Germany that recently closed with something like a $15 billion exposure in U.S. based subprime mortgages.

Our system, from judicial through financial is broke. I say let it collapse and hopefully something better will rise from the ashes. Well perhaps sometime after our flirtation with facism has run its course.