Fed again pledges to hold rates at record-lows

This article reads: "With the recession apparently over..."

How many times does it take a Republi-thug to read the success stories of Mr. Obama to admit that he is the reason we are back on the road to prosperity?

IrishMN wrote:

This article reads: "With the recession apparently over..."
How many times does it take a Republi-thug to read the success stories of Mr. Obama to admit that he is the reason we are back on the road to prosperity?

There you go folks..Another drunken comment brought to you by IrishMn.

IrishMN wrote:

This article reads: "With the recession apparently over..."
How many times does it take a Republi-thug to read the success stories of Mr. Obama to admit that he is the reason we are back on the road to prosperity?

If they really thought it was over, they would raise intrest rates. Only a dolt would fail to see through that spin... ;)

So, we continue subsidizing banks with negative interest rates, encourage mal-investment, and keep the dollar weak.

Guess I shouldn't complain, as I am short on the dollar and making out like a bandit, but it is bad for the country and the middle class.

Barney Frank, Predatory Lender


http://online.wsj.com/article/SB1000142405274...

Almost two-thirds of all bad mortgages in our financial system were bought by government agencies or required by government regulations.

Recent reports that the Federal Housing Administration (FHA) will suffer default rates of more than 20% on the 2007 and 2008 loans it guaranteed has raised questions once again about the government's role in the financial crisis and its efforts to achieve social purposes by distorting the financial system.

The FHA's function is to guarantee mortgages of low-income borrowers (the mortgages are then sold through securitizations by Ginnie Mae) and thus to take reasonable credit risks in the interests of making mortgage credit available to the nation's low-income citizens. Accordingly, the larger than normal losses that will result from the 2007 and 2008 cohort could be justified by Barney Frank, the chairman of the House Financial Services Committee, as "policy"—an effort to ease the housing downturn through the application of government credit. The FHA, he argued, is buying more weak mortgages in order to help put a floor under the housing market. Eventually, the taxpayers will have to judge whether this policy was justified.

more at online.wsj.com ...

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Wouldn’t that be Pwedatory Wender?

Here is a tale for you.
My tale starts with the industrious people of the US. They need money. They need money for food, shelter, cars, healthcare, iPods.... BUT, the people aren't savers.

So the industrious people collectively say to themselves "let us borrow and let us stimulate!" So the people borrow and spend, then borrow more and spend some more. Each time they borrow they need to borrow more to cover interest payments on past borrowings along with new borrowings that add to their debt.

As time goes on the industrious people do not have enough enough money to lend themselves and as they seek more and more money "foreigners" buy up most of the debt. The foreigners eagerly lend. "What a great investment" they say and they lend and lend.

One day, the "foreigners" say "we think you are borrowing too much money and we don't believe you can pay us back ..... plus your rates stink!"

This worries the industrious people. They cannot simply live with less they need more money. They don't want to save. They need money for for food, shelter, cars, healthcare and iPods. At this point in the story, the industrious people are bickering and unhappy. They don't have savings, but just a bunch of debt.

So the people say "why don't we ask Ben for the money. He has tons of it." Ben has a good heart and is from the same stock as the industrious people. He owns a special printing press. So Ben tells the industrious people "I can't just give you all the money you ask for ..... that is not right." Ben knows he just can't give the industrious people money that would set expectations that he is not independent. So he devises a plan.

He calls some of his friends and tells them of his plan and it goes something like this:

Ben: For every $2 I give you, then you take $1 and lend it to the industrious people.

Ben's Friends: That is a good deal for us. But hey, won't that lead to inflation and hurt the industrious people?

Ben: Why do you care? You get the money first before the inflation. Plus if you need more just give me a call.

The end.