Whoaaa!
BBC NEWS | Business | Fed slashes rates in shock move
FRB: Press Release--FOMC statement--January 22, 2008
Let's hope it works
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Whoaaa!
BBC NEWS | Business | Fed slashes rates in shock move
FRB: Press Release--FOMC statement--January 22, 2008
Let's hope it works
stocks still taking a dump :( thats whoa!!!!Quote:
Originally Posted by Delta9 UK
The stock slump is worldwide. In order to turn that around, other central banks may need to cut rates as well.
But... but... but... WHAT recession? :wtf:
And Nero fiddles merrily away...
Our government is such a bunch of clueless boobs. Don't be surprised if the solution is to cut taxes for oil companies.Quote:
Originally Posted by stinkyattic
This isnt gonna do anything but own everyone. After reading this thread, i actually went to my 2 stocks and withdrew it all.. 3,600.. I actually should have done it at the beginning of the year, everyday i looked and was looking about 20bucks a day. If i pulled at 1/1/08 I would have made another 600bucks.
The problem is The Federal Reserve is a private bank, and there should be no central bank. The problem is not that the interest rates are too high or too low. The problem is the Federal Reserve itself. When you print more money, that makes everyone else's money worth less, and it causes inflation.
I like Ron Paul's idea of a competing currency based on gold and/or silver. We are competing with currencies all over the world anyway.
The reason The Fed would not want that, is because they would lose power. Kind of like why the federal government here in the U.S. does not want to legalize weed. It is something hard for them to control and tax. Also Big Pharma would have a hard time profiting from weed were it legal, since it's medicine you can grow in your home.
Think about who would stand to gain, and who would stand to lose power and money, if the Federal Reserve was abolished eventually.
The price of gold, oil, food, is all soaring. Why? We are in a recession. Inflation makes our money worth less, but gold, oil, and food all hold their value.
How does one bank have a right to just print money and call it theirs to loan? Imagine if you suddenly said you were a bank, and you printed a million dollars, and said, "hey who wants to borrow this?" You'd be tossed in jail for creating counterfeit money.
One reason you need a Federal Reserve bank is in order to respond to financial crises and shifting financial markets, like it is doing right now.
The Federal Reserve does not "print money." It does control the money supply, thereby acting as a sort of "throttle" on the economy and a control on inflation. Some kinds of inflation can be partly controlled by the Fed through the use of interest rates to either speed up or slow down the economy. And the Fed does a VERY GOOD job of controling that kind of inflation --- there has not been excessive inflation for more than 30 years. The other kind of inflation comes from an actual real cost of goods that is not controlled by the pace of the economy. Oil is one example, and the cost of oil spreads through the economy, affecting the price of everything else. The Fed cannot do very much about that kind of inflation. But it can respond to other kinds of economic affects resulting from that kind of inflaltion, like recession.
My feeling is that the Fed is very important and mostly does a pretty good job. I've not been able to understand the Ron Paul supporters' hatred of the Fed, and I do not think a gold standard would work. We were on the gold standard during the Great Depression, the worst economic disaster of the last 100 years or more, and the gold standard did not help then.
If you personally want your savings to be backed by gold, you should buy gold.
Quote:
Originally Posted by dragonrider
The first quarter of this century isn't over yet, bub...We could see something worse than the depression...this country is in a downward spiral and it makes me so sad to look and see this go to shit over the past few years..
I would advise anybody contemplating selling their stocks to not do so unless they really need the money. Remember, you don't "lose" unless you sell.
I bought some funds in the last quarter of 2007 when the S&P was at a low of about 1425. Now it's much lower than that, at 1310, and it's a better buying opportunity - if you can wait it out and hang in there until the market recovers, which may take a while.
Ya, now is the time to buy. That's how the rich do it. :thumbsup:
You could find some deals out there. Personally I'm waiting for it to bottom out. There is no doubt in mind that we are approaching a recession.Quote:
Originally Posted by Perp
All I smell is desperation from the feds cutting rates. Before the meeting convenes...... .75 cut. There is something seriously wrong with the market. Things are only going to get worse. I couldn't call a depression yet. We need Bush out of office first and see whos elected. That decision will determine everything.
Agreed - our chances greatly increase once Bush is out of office. It seems he's good at running companies/countries into the ground. I think his plan is poorly directed, too late, and won't do much before the election. But - it sure looks like he's trying, doesn't it? He's the donator.
I agree that there will be some deals out there in the market. Apple just released their second record breaking quarter for profits. They made $1.58 billion .... in profits! :thumbsup:
A few months ago, analysts were calling for $225/share. It's still worth that, it's just going to take the rest of the year to get there. IMHO
I believe Rachel Maddow may have hit the target, earlier tonight on Countdown with Keith Olberman, by pointing to infrastructure investments. Funding infrastructure projects can ripple a lot more through the economy than a few hundred dollars in a tax 'refund'.
Know of any bridges or levees that could use some work?
the problem with the market is the amount of debt countries, namely the us are in.
so they hike up interest rates and people stop spending, so the economy starts to fail as people can't afford to buy the things that the economy relies on.
the answer would be to stop spending peoples taxs that you dont have
Well, you're absolutely correct that our economy could go to complete shit and we end up seeing worse than the depression. Throw in an environmental crisis or a REAL war, and we could be reduced to actual starvation. All I'm saying is I don't think abolishing the Fed and going to a gold standard is the way to go. I think the Fed is a good tool for managing the economy, and for the most part it does a good job. And I was serious about gold --- it's not a good basis for a national currency, but if you really think the economy is headed for serious instability, gold is a great investment for inidvidual investors. Stash away a few Krugerands, Eagles and Maple Leafs, plus a lot of dried beans and shtogun shells.Quote:
Originally Posted by Markass
double post. oops.
(emphasis added)Quote:
Originally Posted by dragonrider
The Federal Reserve Act was enacted December 23, 1913 before The Great Depression.
"Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are hereby authorized."
FRB: Federal Reserve Act: Section 16
Looks like the Fed issues money to me.
blech. must you use that kid's face for an avatar? nothing against you, but damn, that kid is annoying.Quote:
Originally Posted by Perp
Yes, the Federal Reserve was established in 1913, and there were other national banks before it, but notes were backed by gold until 1933 and backed by silver until 1963.Quote:
Originally Posted by angry nomad
Thomas Jefferson opposed the first bank. Followed by andrew jackson's distruction of the national bank.
Banks will be the death of us.
Lets hope that another pres commits to something similar. ;)
Goldfinger nearly succeded in vaporizing the national horde of gold in Fort Knox wtih a stolen nuke.
Let's start using bills printed by Charleston Glass Co. That's the solution to US economic woes. To hell with banks! :tin foil hat:Quote:
Originally Posted by Zcomp
I'm going to print my own currency backed by navel lint. Of course, at the rate I produce navel lint, this currency will be inflated to worthlessness in a very short time.
We do not need a Central Banking system to control the economy.
The Roosevelt Gold Confiscation Order Of April 3 1933.Quote:
Originally Posted by dragonrider
The Gold Confiscation Of April 5, 1933
"All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion, and gold certificates now owned by them or coming into their ownership on or before April 28, 1933..."
"Whoever willfully violates any provision of this Executive Order or these regulation or of any rule, regulation or license issued there under may be fined not more than $10,000, or,if a natural person may be imprisoned for not more than ten years or both..."
Ten grand was like a 100,000 dollars today.
Why did Roosevelt force us to give up our gold and Gold Certificates to the Federal Reserve, a private bank, in exchange for crappy Federal Reserve notes under threat of imprisonment or an impossibly huge fine?
What was so wrong about individuals owning gold or gold certificates?
Ron Paul said he wants to introduce a competing gold backed currency. What is the harm in that? We compete with currencies from all over the world anyway.
in 1933 gold was at something like $40 an ounce today it like $800 an ounce. in 1933 $1 was $1 today tha same dollar is worth $1. in 1933 $1 could feed your entire family today $1 barely will buy anything, well you can get a McDonalds double cheese burger. but you see my point.Quote:
What was so wrong about individuals owning gold or gold certificates?
The gold confiscation act definitely was screwed up, and of course it was eventually repealed. You are free to own gold now.Quote:
Originally Posted by angry nomad
I'm not sure I get what is meant by a "competing gold backed currency." We don't actually "compete" with other currencies. Our currency is traded agaisnt other currecies, but would you call it competing? Our currency is also traded against gold, and this is one of the reasons I don't really see what the point of a gold backed currency is. You can buy gold if you don't have faith in the Dollar, and you can also buy Euro's, Yen, whatever other more favorable or stable currency or commodity you want. So there already is an international gold standard --- it's called gold.Quote:
Originally Posted by angry nomad
Basically, I think the time for hard currecies has passed because the value of the economies of the world have exceeded the value that could be assigned to any kind of commodity that exists in the world.
For example, how would you ever switch over to a gold standard in which every thing of value in the economy had to be calculated in terms of gold and exchangeable for gold? I don't see how it would even be possible. The value of the goods of the world is so much higher than the value of the gold of the world. Right now the exchange rate for gold is about $900.00 ounce. What would happen if the government were to say, "As of today, we are guaranteeing that every dollar is exchangeable for gold at the rate of $900.00 per ounce"? There is not that much gold in the world.
Gold has value as a commodity bacause it has some certain amount of industrial value, a value as a luxury good for things like jewelry, and a value as an exchange commodity that people artificially assign a value to becasue of their faith in it as something of stable value. If it were to become the sole exchange currency, it's value would be distorted out of all proportion.
Hmmm. I have a currency for ya. And its green as well.
I'll trade my "currency" for say an IT techs "currency". I could see many a ways to replace currency with commodity. If we were all free to pursue which ever currency we could produce.