You're Ben. June Fed Meeting. Raise? Hold? Lower? Why?

June 05, 2006

You're Ben. June Fed Meeting. Raise? Hold? Lower? Why?

25 comments:

Anonymous said...: I quit, realising I'll be blamed for the carnage to come; June 05, 2006 11:28 AM
Anonymous said...: I would start figuring out how to put the blame for the oncoming train wreck back on Greenspan ie "We are taking following actions to remedy the current problems in the housing market. However, the possbilities of success are limited due to the unwise decisions of my predecessor ....blah blah blah".; June 05, 2006 11:58 AM
Anonymous said...: I say stop raising. The economy is clearing slowing down, and I think he might have raised enough for now. Let the headwinds take hold.; June 05, 2006 12:17 PM
David said...: They will reluctantly raise .25% as

1) defending a sliding dollar (its at 1.2950 now)
2)Making sure money keeps flowing to fund US debt
3) Tame inflation

will trump the 'cooling' economy.

David
http://bubblemeter.blogspot.com; June 05, 2006 12:32 PM
Anonymous said...: The US and the Fed have lost control of the entire situation. 0% savings rates and huge debt levels at all levels of the society mean that Americans have lost control of their destiny.

The Fed can tinker around the edges with little rate adjustments. However, the real long-term rates will be set by powerful market forces ie international capital flows and razor-thin international oil supplies to name a few.; June 05, 2006 1:13 PM
Metroplexual said...: Same as David,

The currency is toast if he does not raise. He will reluctantly do it based on the last jobs report.; June 05, 2006 1:55 PM
The Thinker said...: I say raise it 25 basis points a meeting until at least 6%. Preventing inflation is the Fed's primary responsibility.; June 05, 2006 2:11 PM
Anonymous said...: Definitely another .25 increase. Gotta get that inflation under control! Bad situation for Ben. Really good idea about blaming Greenspan though! If I were in Ben's shoes, I'd have my people drafting the first "Its All Sir Alan's Fault" speech for the big press conference.; June 05, 2006 2:34 PM
Anonymous said...: I think he will raise another .25. The dollar is very shaky and being new he has to establish his hawkish creditials. I think the irony of the situation is that a recession is probably healthy for the economy especially right now. You have what Alan Greenspan caled "A Global Glut of Liquidity" roaming the globe like a drunk sailor trying to score some action.; June 05, 2006 2:42 PM
Anonymous said...: Raise it is.

However, the possbilities of success are limited due to the unwise decisions of my predecessor ....blah blah blah".

Hilarious. Only a real man would do this.; June 05, 2006 3:00 PM
Bill said...: Would not surprise me to see a .50% basis point.

I mean inflation is up there in real terms and With Russia buying gold at the fever of a newborn on a right breast ben has to show that he will protect the dollar.

As far as housing goes I say let it tank. Still way over priced and no takers.

2 OPEN HOUSES right across the street from me, at one point i seen the agent sitting on the front steps like a lonly puppy dog wating for his owner to come home to take him for a walk. housing is truly in a depressive state.

The real question should be, what will be the next major bubble to keep this train rolling in the states, or are we bubbled out for a real correction recession.; June 05, 2006 3:06 PM
Anonymous said...: Think globally, Bernanke and his buddies at the other central banks certainly do. The U.S. economy is just one wheel on the car, with Japan, China, and the EU on the other corners. If any of the tires go flat, the car will have to stop.

These guys will do almost anything to prevent a flat tire. Quit pretending that the other central banks will sit by and watch the U.S. economy spin into depression -- it ain't gonna happen!

They will simply create whatever liquidity is needed to "manage" the situation and help the pols muddle through. Anything less would mean riots in DC and Beijing.

Get ready for the biggest bailout in history and a U.S. dollar that is worth 30% to 70% less than its cuttent exchange rate.; June 05, 2006 3:53 PM
Roccman said...: Cheney thinks the dollar will crash

http://biz.yahoo.com/special/hfund0605_06_article5.html; June 05, 2006 4:16 PM
41cadillac said...: Ben will raise .25 to .50.

He will refer to Volker as to the benefit of keeping inflation controlled.

For one day the stock market will tank because of the Volker reference. 41cadillac; June 05, 2006 4:20 PM
Anonymous said...: 1/2+

It needs to be done.

Inflation is out of control

My job is price stability

The damage has been done; June 05, 2006 4:21 PM
Anonymous said...: Raise a quarter. Better now than then drastic raises later.; June 05, 2006 5:07 PM
Anonymous said...: My feeling is that they will raise rates another quarter point then go on pause, in July and see where we are at in August. It seems the Feds are putting on an act, on one hand they are showing the public they are supposedly tightening standards, then ironically goosing the system with more money and credit creating inflation. Its a central bank global conspiracy.
read my blog daily as I focus on reading between the lies and propaganda and posting the reality.

http://middleclassgetpoor.blogspot.com/; June 05, 2006 5:15 PM
Anonymous said...: Another quarter point it will be.

I don't think it will be a half point since the dollar is recovering against "emerging market" currencies and gold/silver quite strongly (but not against the euro and pound).

On the other hand, there won't be a pause yet since that would likely cause a panic.; June 05, 2006 7:05 PM
Anonymous said...: Panic? I certainly hope so.

btw, anyone with an adjustable rate mtg. has got to be filling their pants right about now. They were too stupid to get a fixed so they are surely too stupid to see the sledgehammer before it caves in their dome.; June 05, 2006 8:31 PM
Bill said...: my two sisters bought in the 05 mania, with 80/20's thanks christ they listin to me and refied out just under the gun as they say; June 05, 2006 8:37 PM
Anonymous said...: I Agree with the thinker
Raise -
"Preventing inflation is the Fed's primary responsibility"

jj; June 06, 2006 1:24 AM
Anonymous said...: Raise those rates through the roof and get it over with.

Let's get back to building a healthy economy. We cannot do that until the housing mess is slaughtered.

Back to 20% downpayments. Minimum. No 40/50 year loans.

.5% raise in June, to let people know you mean business, and then start taking 'em up full points if you need to.; June 06, 2006 5:19 AM
Anonymous said...: I would say we need to raise another half point at least. The minute that the Fed stops raising, Wallstreet is going to go bonkers and the spending spree will continue. The market is so far out of balance that the Fed has to go high enough that it will discourage the majority of people from borrownig. 6% is not that high.; June 06, 2006 4:28 PM
Anonymous said...: My Projection:

-1/4 point now, 1/4 point next meeting

-Dollar falls another 15% over the next 6 months

-Housing falls 15% over the next 2 years

-Oil drops after an investigation discovers price fixing by futures traders and Iran shuts the fuck up.

-Stock market rallies in the fall; June 06, 2006 5:52 PM
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Have a great week!; July 19, 2006 3:44 AM

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June 05, 2006

You're Ben. June Fed Meeting. Raise? Hold? Lower? Why?

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