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How Low Can You Go?
The “Limbo” song lyric asks: “How
Low Can You Go?” That seems to be a valid question for FED
Chairman Ben Bernanke these days. He hinted yesterday about another
lowering of the prime rate which, again, sunk the value of the United
States dollar to a new low.
The mortgage bankers received a bailout which kept the obscenely inflated stock market from the inevitable crash last month. Bernanke cut rates twice during that period which stopped declines temporarily.
How long can multi-billionaires and Bush cronies continue to manipulate our markets to keep the inevitable from happening? How low can the dollar go? How low can the prime rate go? Mr. Bernanke only has a few points left before he reaches our “ground zero” financially. It will set a new precedent if he reduces the prime rate into the negative. Although it would definitely spark the economy if the wealthy Americans and corporate interests who benefit from the lower prime rate could borrow money without interest. I guess when the prime rate reaches -.1, the government would pay the wealthiest Americans to borrow money. Interesting development!
The mortgage bankers received a bailout which kept the obscenely inflated stock market from the inevitable crash last month. Bernanke cut rates twice during that period which stopped declines temporarily.
How long can multi-billionaires and Bush cronies continue to manipulate our markets to keep the inevitable from happening? How low can the dollar go? How low can the prime rate go? Mr. Bernanke only has a few points left before he reaches our “ground zero” financially. It will set a new precedent if he reduces the prime rate into the negative. Although it would definitely spark the economy if the wealthy Americans and corporate interests who benefit from the lower prime rate could borrow money without interest. I guess when the prime rate reaches -.1, the government would pay the wealthiest Americans to borrow money. Interesting development!
The problem with continuing to pump air into the Titanic is: IT'S TEMPORARY! The gash in the hull of the American mortgage system can't be repaired. More water continues to flow in than the Bush billionaires can pump out. Foreclosures, $4 per gallon gasoline (spurred by $100 per barrel costs) and the continued corruption, arrogance and greed of this administration can't be repaired with rate cuts. Buoyancy of our financial institutions can't be sustained by patching the holes in America's hull with duct tape.
Before long $100 will buy a barrel of oil or ONE Euro or ONE loaf of bread!
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Comments (5)
Beginning to look like 1932. Maybe we'll get a new New Deal, too.
February 28, 2008 12:12 PM | Reply | Permalink
Ditto for both!
February 28, 2008 1:14 PM | Reply | Permalink
Is there any thought in all these decisions that protect business interests about the future beyond these people's lifespans? Even their children will face a world where even tons and tons of money won't help them to breathe when they go outside of their hermetically sealed bubbles. Who will do the work for them and create the products they want to buy so they will have luxurious lives if no one in the "lower classes" has been able to get an education, learn skills, apply skills, eat, live, and on and on?
My theory is that after the '29 crash, life wasn't so rosy even for those who still had tons of money, because the rest of the world didn't function well enough for them to get the comforts they took as their entitlement. So the rich people benefiting from every horrible decision made by the Administration and those who are their tentacles aren't going to be happy without a functioning infrastructure. Maybe they can go without a few hundred million bucks—since they already have way more than they could ever spend—now and guarantee their current comforts pass down to their children and beyond.
All they have to do is look at improving the lives of others as ultimately benefiting themselves. Because it really will. But it doesn't work the other way around.
February 28, 2008 3:32 PM | Reply | Permalink
Comical post as usual..
First the federal funds rate is at 3% a far cry from your mentioned -1%. I guess to someone who's predictions of a failed Iraq policy is left with little to discuss and must move on to further BS.
Side note:
FYI 97% of all home loans are current.
On a personal note, I bought a house 2 years ago and just recently slapped a FSBO sign in the front yard. I of course marked it up 30% from where I bought it. 6 days later I closed.. Tough times we live in, try to find a place to eat on a Saturday night without a 1 hour wait.. But I forgot I'm one "of the rich"..
additional note Q1 GDP .6% despite your liberal biased rhetoric of recession.... try again Chuckie...
I think you should devote a chapter of your PTSD book to John McCain. You know the guy who was a POW for 5 years. Tortured repeatedly, 2 years of solitary... I wonder if he jumps when he hears a firecracker??
February 29, 2008 12:46 AM | Reply | Permalink
As with all our discussions over the years, Lt., history will show who's right. Congratulations on your blind optimism. "Georgie" showed it yesterday too during his press conference when he assured the American people there would be no recession.
Congratulations too on your luck in turning your house into a profit (Although I have a difficult time believing you closed a sale within 6 days of posting a FSBO sign unless you had the sale prearranged). You are in the minority if you're telling the truth. Nationwide the market is horrible and inventories are at record levels.
As for John McCain... I supported him and would have voted for him in 2000 if Bush and Rove hadn't torpedoed his campaign with lies and fraud. But he lost ANY chance for ever getting my vote when he stood behind these monsters and caved to their war mongering policies. I don't know what they have on him and other members of Congress but he has failed to show the courage he showed in Hanoi during the past few years.
I've never responded to one of your many personal attacks before but as to your "jumps-when-he-hears-a-firecracker" comment...
You're sometimes an arrogant little p@#(k. The guys who have PTSD and respond negatively to loud noises or flashbacks don't lack courage. I'd be willing to bet McCain has had flashbacks and thoughts he'd rather not share. But your ridiculous rhetoric equating PTSD with a lack of courage is moronic. You should be ashamed!
Enjoy your optimism until the market crashes and your millions are worth thousands.
February 29, 2008 11:53 AM | Reply | Permalink
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