Fed cuts the Funds Rate 3/4 of a Point

[GigantorX]

Does anyone feel that the price of gold is being held down on purpose?

Explain. I mean, gold has more than doubled in price, as well as oil as a hedge against a  weak dollar. Are you saying there may be some collusion between traders? Or possibly something more nefarious at play.

[stormshadow]

Explain. I mean, gold has more than doubled in price, as well as oil as a hedge against a  weak dollar. Are you saying there may be some collusion between traders? Or possibly something more nefarious at play.

When adjusting for inflation the current price is not even close to the last high of 800 per ounce many years ago.

[GigantorX]

When adjusting for inflation the current price is not even close to the last high of 800 per ounce many years ago.

And that was in the 1980's, correct?

[stormshadow]

And that was in the 1980's, correct?

Correct.  I have read that the current matching price adjusted for inflation would be around 1,800 per ounce.

Our dollar has already collapsed, the only thing holding it all together is constant deception by the media and refusal to accept the truth.

I don't think they are even threatened by Ron Paul, because Americans are so brainwashed that they refuse to accept a viewpoint that conflicts with that of the mainstream media. (Matrix)

How can a government that is 9 Trillion in debt with 17 Trillion in unfunded liabilities have any backing for a currency?

It cannot, the guarantee is the income tax on its citizens.  The slaves to a debt they did not incur.

[youandme]

Quick question: Are we heading for a recession?

we've been in a recession for sometime now, shhh don't tell the gov that

[GigantorX]

we've been in a recession for sometime now, shhh don't tell the gov that

Actually we haven't. A housing recession yes, but the overall economy, no.

A recession is 2 back to back quarters of zero or negative growth. And we won't know when that will happen until it does. Also, we as tax paying citizens are "collateral" to foreign banks. Period. We have had 15 years of cheap money and irresponsible and inflationary monetary policy by the Fed (mostly Greenspan) and now these chickens have come home to roost. We keep trying to avoid a natural end to a business cycle (recession) by opening up the taps and further digging our own graves. Brilliant!

[War-Horse]

anyone who buys a house now is an idiot.   Wait a year and the prices will tank for sure.   The only way to save the economy is for a HUGE price correction to take place on Homes, Fuel, Food......

The current wages paid in america do not buy 250k homes etc.   The dollar bought twice as much in 1970 as it does now..(inflation)

These last holidays were the last HooRah for spending, most americans have no more credit left........fasten your seatbelts.

[Matt C]

EDIT: Also, keep this on the G and O Board because I can feel an actual solid and informed discussion coming from this. Hell, it beats arguing about Dorian and Ronnie.....

I feel Ronnie was better.  That being said, Dorian was an excellent bodybuilder!  Discuss.

[GigantorX]

I feel Ronnie was better.  That being said, Dorian was an excellent bodybuilder!  Discuss.

Damn you!!!!!!!!!!

[Matt C]

Damn you!!!!!!!!!!

Are you saying Dorian was better? 

Canadian Prime @ 5.75%

!!

That's great if you already have debt because now you will enjoy lower interest payments, but please don't fall into this trap of debt if you aren't already in it!  I know this is meant to encourage more borrowing and I really hope people avoid that.

[GigantorX]

I'm almost done paying off my student loans, should be another year. My credit cards are cool and my car is paid off. BOOM@!!!!!!

[Matt C]

I'm almost done paying off my student loans, should be another year. My credit cards are cool and my car is paid off. BOOM@!!!!!!

Word!

I bought a new car last February so it should be a while yet before I need to get another one, and other than that I am doing alright.

Thunder Bay is #1 in affordable housing in the world.

According to the 2008 4th Edition Demographia International Housing affordability survey, Thunder Bay is the most affordable out of the 227 urban markets they surveyed around the world.

Link:

http://www.demographia.com/dhi.pdf

[youandme]

Actually we haven't. A housing recession yes, but the overall economy, no.

A recession is 2 back to back quarters of zero or negative growth. And we won't know when that will happen until it does.

Talk to anyone that owns a business that relies on the service economy we live in and they will tell you we've been in a recession for awhile. Once the Fed said in October that a recession wasnot likely, that was the red flag that we were and had entered the danger zone.

[Camel Jockey]

GUYS, isn't it obvious that lending out more money that you don't have to banks is really good for this country in the long run? LOL   I mean more debt to the Chinese and private european banks is fantastic! The average joe's paycheck not keeping up with inflation is great! What a great economic plan! Awesome! Citigroup and Morgan Stanley getting bailed out will really help us all!

[GigantorX]

Again, when we have 2 back to back quarters of TOTAL GDP contraction, then we will be in a recession. There can be recessions in certain sectors of the economy, that is true, but until we have that half year contraction, we wont be in a total economic recession.

[Matt C]

Fed cuts the Funds Rate 3/4 of a Point

Temporarily, is this a good thing?

[GigantorX]

Temporarily, is this a good thing?

 As long as it is temporary to give the economy a little juice, than fine. But, if the Fed keeps rates too low, like Greenspan did at the beginning of the decade (both in the 90's and 2000's) than no. All it will do is devalue the dollar even more and create another bubble which in the end creates no real wealth for the majority because that bubble will eventually burst, explode, meltdown or if we are lucky just deflate.

I like Dorian better, he was white.

[Matt C]

As long as it is temporary to give the economy a little juice, than fine. But, if the Fed keeps rates too low, like Greenspan did at the beginning of the decade (both in the 90's and 2000's) than no. All it will do is devalue the dollar even more and create another bubble which in the end creates no real wealth for the majority because that bubble will eventually burst, explode, meltdown or if we are lucky just deflate.

What is your advice to everyone?  My advice is to enjoy lower interest rates, but not take on any additional debt!  That said, with the basic principles of this system being what they are, it is not possible for everyone to get out of debt.  But on an individual level, some can get out of debt.  For the economy as a whole, debt literally sustains it!

I like Dorian better, he was white.

Hi NarcissisticDeity.

[bigdumbbell]

What is your advice to everyone?  My advice is to enjoy lower interest rates, but not take on any additional debt!  That said, with the basic principles of this system being what they are, it is not possible for everyone to get out of debt.  But on an individual level, some can get out of debt.  For the economy as a whole, debt literally sustains it!

Hi NarcissisticDeity.

i'm going to treat myself to a big beautiful new BMW.  i deserve it.

[GigantorX]

What is your advice to everyone?  My advice is to enjoy lower interest rates, but not take on any additional debt!  That said, with the basic principles of this system being what they are, it is not possible for everyone to get out of debt.  But on an individual level, some can get out of debt.  For the economy as a whole, debt literally sustains it!

Hi NarcissisticDeity.

My advice is to not be fucking dumb with your money. Don't over-extend on debt and invest wisely for the future. It is a good idea to take adv. of the low rates, but to act like a total buffoon and spend yourself into an untenable position is insanity. Which is what brought us to this point.

You can have a good life and enjoy yourself but if you are walking on the the tight-rope of fiscal oblivion because you bought a car or a house (or both)with a pea sized down-payment and now you're squeezed, well, you are fucking to blame and no one else.

Here is a good example of dumb people, especially young people. In a growing young area by me the banks offered some sort of ARM loan on a new house. The sweet thing was that you did not have to put much down or even make a payment on the loan itself for 3 years, you just paid the interest. So, in three years you spent the money you would have saved by paying on the interest only (because god knows no-one would have saved it) and now you are fucked b/c you have to actually pay the interest AND the loan, which you probably couldn't afford in the 1st place. But gee, you got to live in a nice house for those three years....until you default.

[bigdumbbell]

haha  i have no debt...all i pay is big taxes

[youandme]

Again, when we have 2 back to back quarters of TOTAL GDP contraction, then we will be in a recession. There can be recessions in certain sectors of the economy, that is true, but until we have that half year contraction, we wont be in a total economic recession.

No economist is going to go with that shorthand explanation. Point in case 2001 3 consecutive negative quarters then it was a "official recession" Recessions are not made on GDP or negative quarters.

i'm going to treat myself to a big beautiful new BMW.  i deserve it.

Don't do that. When Bush went to speak to OPEC, they said they would supply oil as they saw fit not based on supply and demand. Then the next 2 days oil prices slipped and we say a supply of oil....hmmm but where was that from? Yes it was our reserves.

Oil will be $5 a gallon, when? Next year or so. India just signed a huge oil deal with Malaysia (25years), were out of the loop right now.

[bigdumbbell]

No economist is going to go with that shorthand explanation. Point in case 2001 3 consecutive negative quarters then it was a "official recession" Recessions are not made on GDP or negative quarters.


Don't do that. When Bush went to speak to OPEC, they said they would supply oil as they saw fit not based on supply and demand. Then the next 2 days oil prices slipped and we say a supply of oil....hmmm but where was that from? Yes it was our reserves.

Oil will be $5 a gallon, when? Next year or so. India just signed a huge oil deal with Malaysia (25years), were out of the loop right now.

it's ok i can afford 5 dollars a gal

[youandme]

it's ok i can afford 5 dollars a gal

haha damn man. What did you get a police repo 

Hey you know what, if your buying a expensive car, then the last thing you should be worried about is the price of gas, if so then means you probably should not be buying it in the first place. hehe

[bigdumbbell]

haha damn man. What did you get a police repo 

Hey you know what, if your buying a expensive car, then the last thing you should be worried about is the price of gas, if so then means you probably should not be buying it in the first place. hehe

i've been looking at some for a few months and now seems like a good time   bmw sedan   i'm a liberal republican   lol