well, FED trick is obvious from now on

[ghemminger]

well, FED trick is obvious from now on.....

no more rate changes (since at near lows) but print money to the gills each day and buy stocks and bonds.

Inflation is moon shoting and companies are now HIKING prices and massive inflation move coming in economy, with massive deflation from collapsing housing market.

Consummer is going to die.

[billv]

Buying stocks and bonds with printed money decreases rates. The federal reserve usually buys government issued bonds to lower the interest rates. It does this through increasing the money supply. An increase in the money supply will cause interest rates to increase so long as money demand doesn't increase proportionately as well.

[born2drv]

well, FED trick is obvious from now on.....

no more rate changes (since at near lows) but print money to the gills each day and buy stocks and bonds.

Inflation is moon shoting and companies are now HIKING prices and massive inflation move coming in economy, with massive deflation from collapsing housing market.

Consummer is going to die.

I agree.... mid next month when the existing housing sales for the month of august are released, and I think the market is going to go in another big decline. That's the first month expected to show the real ugliness in the market as a result of the credit crunch that began in late july.

[nullvalu]

I agree.... mid next month when the existing housing sales for the month of august are released, and I think the market is going to go in another big decline. That's the first month expected to show the real ugliness in the market as a result of the credit crunch that began in late july.

Agreed. Not to mention we're on something like the 5th month of straight home sales declines. They're sitting on a 9-month single family home supply and a 12-month condo supply. Hope none of you were planning on selling your home in the next year or two...

[surf]

Bill is close. Wall St. is complicit in keeping rates at unreasonable low levels (along with the bogus CPI numbers released by BLS). The Fed strong-arms the street a bit, and the street is scared as hell to bight the hand that feeds it.

[billv]

Bill is close. Wall St. is complicit in keeping rates at unreasonable low levels (along with the bogus CPI numbers released by BLS). The Fed strong-arms the street a bit, and the street is scared as hell to bight the hand that feeds it.

Maybe you could expand on that a bit.