June 26, 2006

25 points? 50 points? Do nothing? Quit and run?

21 comments:

Anonymous said...

25 points. Slow torture for the all the people with ARMS. Then when things go bad he'll lower. Can ARMS lower? I bet a lot of people are asking that right now.

skytrekker said...

I think he will raise this week, and again in August- when the economy begins to slow down to recession levels by the end of the year he may lower- because of panic- but inflation in the underlying economy will remain, therefore making any lowering a disaster as gold goes up like a rocket, and without the lowering having any affects at stopping the slowdown. He is in a pickle really- either way it seems a serious slowdown is in the cards.

Anonymous said...

should go 50 but will go 25

David said...

25 points.

bugsy said...

My guess is just a little scenario I have cooked up in my head. Up .25, up .25, then pause, then up .125. Call me crazy but I looked back and the fed has made moves as little as 1/8 in the past.

Stuck in so Pa. said...

At least 25 points, 50 would be nice. Although, didn't that prof on the UCLA Anderson video say that this (housing bubble) is way past interest rates at this point? Sorta has a life of its own.
Sheeple waiting on the fence will still jump in with the "lock in now before rates go up any farther" mentality. I still think it’s going to be a long, slow, and painful way down. The fact that anybody in this entire country is buying real estate today, and they ARE big time, just lower numbers, is an indicator of the dumbing down of America.
I think someone wrote in something to the effect: "slightly less screwed than the guy who bought yesterday, slightly more pissed than the guy who buys tomorrow"

The Thinker said...

Ben will do what it takes to get inflation under control, and right now inflation is far from under control. We have a long way to go.

Anonymous said...

Ben is going 50, it's the responsible thing to do, and another 50 after that
at least, say hello to your new best friend the CD.

Anonymous said...

Yakity blak flim flam zoom, my name is Ben and my game does loom. Watch my lips move, guess my lot, you'll die by increase or better if not.

.25 +

Laura said...

Here's a song for all my fellow HP's listening enjoyment....very well done if I don't say so myself....


http://www.boogiewoogie.com/TEST/ARTIST/DORE/Disaster.mp3

Laura said...

http://www.boogiewoogie.com
/TEST/ARTIST/DORE/Disaster.mp3

Link didnt work, maybe now its O.K.

Anonymous said...

The FED usually overshoots by 50 basis points when at the end of their tightening.

I would argue 25bp's may be a sign that 600bp is likely, while 50bp's means that they are done.

Anonymous said...

Spreading it out is generally better. It's still at the point that it can be spread.

25 points

veritas_faust said...

50 bp...I just feel it, not based on anything scientific except the tarot cards and chicken bones I was reading with breakfast.

Anonymous said...

there are too many expections in the markets now of 50 points for him not to follow through

Anonymous said...

Lets go 50...then 50 again...then 50 more....then another 50 and wipe out retards who have no finincial common sense.....then 50 more so they fell like they just got punched in the face.....then another 50 so they feel like they got kicked in the gonads.

That would be sweet since I have no debt other than a fixed 5.5% mtg. on 100K.

keith said...

25 and bet the farm. no way 0 and no way 50

0 or 50 would send the market into a tailspin - 0 says he's a puss not strong on inflation, and 50 says "oops, we're behind"

so 25 and plays it safe

100%

Anonymous said...

!!!!!.50 !!!!!!

PLEASE!!!

Bring the Volker days back!

The sooner we get there, the better off we'll be.

So .50 now, and within the next few months, start raising 1 full point at a time.

Kill this debt- ridden society and make us whole again.

BGManofID said...

Lets go 50...then 50 again...then 50 more....then another 50 and wipe out retards who have no finincial common sense.....then 50 more so they fell like they just got punched in the face.....then another 50 so they feel like they got kicked in the gonads.

How are you doing, Mr. Volcker? Nice of you to show up here! :-)

Anonymous said...

Since I want to keep my job, I will be very oblique about how I know this... June is weakening for the prime lending market. Lenders can probably hide this in 2Q since May and April were pretty good. But the softness is now spreading beyond subprime. Really, folks. It is.

We do not need any more hikes to cool off lending. But hey, I'm just a geek in a cube-- it takes time for this information to make it to the executives and policyholders.

Another 50 BP now will just be piling rocks on am already closing door.

zingerrr said...

The older folks who have a lifetime of savings in CD's and partly living off of interest income are cheerleading for more and faster rate hikes.

The younger middle class families are burried over thier heads in debt they can only service by taking on more debt.

Prime lending is slowing, the middle class is going Bankrupt in mass; foreclosures will continue to set new records.

Where does the all end?