The FED

[Baby Tran Cat]

Being that the Fed Reserve Board is not supposed to have ANY political influence...guessing this still belongs here.

Don't know if any of you know the name Stan Druckenmiller or not but imho he is one of the greatest economic minds we have had in the country in decades...also knows how to play it...saw the housing collapse, told everyone it was coming, they ignored him, he made a billion betting against the banks. Anyway, just listened to a speech he just gave which I felt was brilliant. Here is one of the things he said to a large group of economists:

If you were living on Mars for the past five years with zero access to news and came back to earth and were presented with the following facts, where would guess interest rates to be?

1. Average net worth per household in the US is the highest it has ever been.
2. Employment, though not great, was higher than it had been in over five years.
3. Industrial production was at a high over a 7 year period.
4. US Retail sales...the same
5. Core CPI v Japanese CPI was at a decade high.

Most would respond with a rate of 3% ish I would guess at a minimum! NO ONE would guess ZERO.

The credit bubble we have is H U G E !!!!

The Fed is SO FAR BEHIND THE CURVE it is ridiculous. They are living in the economy of five years ago. IF they keep this up this stock market, falsely inflated, will go BEAR quick...when it goes it will go hard. They are overly concerned with the short term, right now economy and not the long term health of the country. Rates at some point will RAMP like we have never seen...

I sure hope people know this and bake it in to their plans because when it comes it will be the unprepared who suffer...and then blame others...take them to court...go to the streets with signs...

The great thing about our country is that all this info is open and public to those who read the tea leaves...

rant over

[Robalo]

Brad:

I remember my 13% APR mortgage and how I was happy to refi it down to 10%. I remember 18-20% interest and 15% inflation-thanks Jimmy Carter.

It will be a major shock when interest rates soar to 7-10% and money is tight.


I do have an issue with some of the numbers, but they all still are crummy because over the last 6 years, Obama has redefined numbers-he spins them to make them look good, when in fact they are just bad, but because it's limited to 5 years, it still reflects solely Obama numbers, spun or otherwise, and compares apples to apples-it may sound good, but when compared to 8-10 years ago, all the numbers would look like garbage.


So should I dump my 22% stock values increase in the last 12 months as to my portfolio or hold until the first sign of "CRASH" and sell, sell, sell? I'd sure hate to give up my current earnings that I am seeing now.

[Baby Tran Cat]

I am holding...kind of like the late 90's...ride the wave but be ready and dont fall asleep thinking the party never ends

[JT]

Throw in what could become $150-200 oil and watch what happens

[Baby Tran Cat]

Throw in what could become $150-200 oil and watch what happens

Be long and celebrate all the way to the bank baby!

[JT]

Be long and celebrate all the way to the bank baby!

I'd much rather see $8-9 gas. Lol

Obama administration has been pummeling those that did what you were always supposed to do and that is SAVE. these 0% interest rates punish those.

[Robalo]

Obama is a Socialist-look at his record-he only knows what the Gummint 'gives'. He's NEVER worked for or in the Business Sector and never will. He's set for life with his retirement and perks, so why should he give a rat's azz what happens to YOU.

Only an idiot would think that the child-man Obama gives a darn about them. The Dummycrats are doing everything they can to ruin this Country - all for VOTES by Gimmedats!!

[Baby Tran Cat]

Gimmedats!!

lol...never heard that

[Moonpie]

lol...never heard that

Go fishing with JT and catch a nice trout. You'll hear it then.

[kenny]

I'd much rather see $8-9 gas. Lol

Obama administration has been pummeling those that did what you were always supposed to do and that is SAVE. these 0% interest rates punish those.

No chit huh? The Gobment has to keep the rates at zero to meet the current debt obligation, and to hell with old folks.. We may not see inflation, just high prices and worthless money! LOL

[JT]

Kenny, here's what I'll do for you. When I go to las Vegas next week, give me some $$$ and pick the red or black on the roulette wheel that you want to bet. I'll make the bet and then let you know if you won! At least you have a chance of doubling your $$$.