The Fed just housing panicked...
Fed cuts rates by a half point The Federal Reserve lowers the target on a key short-term interest rate for the first time in four years from 5.25% to 4.75%
The Federal Reserve cut the target on a key short-term interest rate by a half of a percentage point Tuesday to 4.75%, further acknowledgment from the central bank that the mortgage meltdown plaguing Wall Street and Main Street could have a negative impact on the economy.
The cut to the federal funds rate, the first since June 2003, was widely anticipated by investors and followed a surprise cut to the Fed's discount rate on August 17. The only question was whether the Fed would lower the federal funds rate by 25 basis points or 50 basis points.
September 18, 2007
The United States Dollar: 1785 - 2007, RIP
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150 comments:
gonna use some of that cheaper margin to short more cfc baby!
this is a desperate act from a desperate central bank. It won't work, it won't save the housing market and it won't save the US economy.
What morons don't understand is that this won't save housing. It will only cause the value of the dollar to tank and increase inflation.
We are now screwed on both ends.
Got oil?
GOLD IS UP 6%!
717 DOLLARS PER OUNCE!
The dollar is toast. The FUC*ING idiots just killed the dollar, so I'm moving to foreign currencies and Gold and Silver [MORE]. What good does it do to be up in the stock market while net I'm getting my ass kicked by the shitty dollar devaluation. THey are nothing but assclowns!!!!!!!!!!!
Those of us foolish enough to live conservatively and save have just been thrown under the bus. 50 basis point drop in both the federal funds rate and the discount rate. Wow, just Wow.
Will this make for a consumer rally for the holidays?
Cheap money to buy cheap consumer goods to stockpile under the tree?
Why not one last great Christmas consumer binge before the F@^*#d borrower mils in the keys.
This is bad comedy...
$5 gas anyone?
PS I've got about $10000 sitting in cash i want to convert to Euros ASAP!
Any advice HPers???
What a P@SSY
Real interest rates are already NEGATIVE.
Helicopter Ben says "Look out Below"!
I'm short the 30 year and long Gold, Silver, Oil.
$10 head of lettuce anyone?
Idiots, letting Wall Street dictate fiscal policy. I knew the Fed was stupid, but the depth of it shockes me....
Euros anyone?
MORAL
HAZARD
Euro Pacifica, expect a phone call from me today. Need to get rid of my USD cash.
$724/oz now.
I'm visualizing the face of helicopter ben photoshopped onto the body of Slim Pickens as he rides that nuke in.
YeeeeeeeeeHAAAAAAAAW!!!! YEEEEEEEEEHAAAAWWWWWW!
I'm diversifying into hookers and blow, as of now.
In explaining its action Tuesday, the Fed said that "the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally."
I POOP my Pantz.......I POOP MY PAAAANTZZ!!!!
Seeing this I am so tempted to go out and get 2, not 4 credit cards and max them all out, and pay them back in worthless dollars...i just may do it.
Then you better go wash your ass..........Ya piece of trash.
the last time i felt this way was when i heard the OJ verdict.
my coworkers are actually gloating.
If Ben thinks he's helping he's crazy! Long term rates are now shooting up to compensate for higher inflation. Mortgages aren't going down they are going up!!!
My HELOC interest rate just dropped half a point! Just in time, those monthly interest only payments were starting to hurt!
What a joke. Housing is over. Credit is over. This will do nothing.
Sorry realtwhores but this 1/2 point cut will not save you from the stripper pole.
Beware gold bugs - now they have to whack bullion prices to prevent a rout. There is a "golden" buying opportunity dead ahead.
Aren't ARM's tied to Libor and not the fed funds rate?
Congratulations Keith! All the msg board traffic in the bubblesphere is here and at Patrick.net.
A toast to you my friend. Your excellence in Bubble journalisim and the entrepreneurship you have shown with your Blog is to be saluted.
Cheers!
"borkafatty said...
Seeing this I am so tempted to go out and get 2, not 4 credit cards and max them all out, and pay them back in worthless dollars...i just may do it."
Pay it back? Why? Just keep making the minimum payments and run it back up.
It's feudalism all over again.
Cut in Fed rate does NOT cut mortgage rates which will continue upwards
Here come the "Spirit Bunnies."
http://www.youtube.com/watch?v=rrMUJ-47iFc
How's it feel to know you missed out yet again HP? Nice predictions that the fed would raise. God what idiots you people are.
Keer renting and putting your money under your mattress.
HPers lend me your ears!
Like I Predicted 2 days ago on a post here.
1/2 point cut and housing panic closes!
Now we have true divsion in the U.S. Between the poor and the rich. I don't exactly agree with this 1/2 point cut but I knew it was coming.
I really feel sorry now for the renters and the people doing the right thing.
What no one bet on was that there is a middle class, its a global middle class that excludes the U.S. Think about that!
The Fed had 525 bullets and just shot off 50 of 'em
As Japan found out too, once you cut to near 0%, you got nothing left
my mortgage is fixed at $1700 a month for the next 26 years. Can you say that about your rent? If this hyperinflation comes, who do you think will get fucked more, me or you? Hint: it's not me.
Economists said they believed that Bernanke, who wrote extensively as an economics professor on the Great Depression that followed the 1929 stock market crash, understands what needs to be done to avert downturns.
"We have had a long history of financial panics and if we have learned anything, it is that you shove money at them," said David Wyss, chief economist at Standard & Poor's in New York.
Sell dollars, get what you can.
There is one tried and true way to save the USD - it's called war...
Domestic financial stocks trading higher and foreign currency trading higher. What's wrong with this picture?
http://tinyurl.com/25wqaj
"Oil Scam Driving Crude Over $80
So what did happen? Well the traitors cancelled 117,558,000 barrels of oil, that’s 29M barrels A WEEK from October delivery in order for the weather girl on CNBC to be able to tell you every Wednesday at 10:30 how tight supplies are. And what did they do with those barrels? The same thing they do every month, they "roll" the contracts into the forward months, creating a false demand there for oil they never intend to accept delivery of and they have done it EVERY SINGLE MONTH FOR THE PAST 2 YEARS!
But, they are not done…
Were the traitors traders to accept delivery of the 171,442,000 barrels of oil that are still open today, BARRELS THAT THEY HAVE ALREADY BILLED YOU FOR, it would create the biggest glut of oil in US history and crash the oil markets. So these traitors traders will, in the next 4 days, CANCEL ANOTHER 130M BARRELS OF CRUDE and slip the majority of them into the next 3 months in order to create the perception that there is, simultaneously, a record demand and a tight current supply. "
"I'm diversifying into hookers and blow, as of now."
LMAO!!!
$1700 a month for the next 26 years. Can you say that about your rent?
Hope you like it out there in flyoverland.
Gold at $727...straight-freaking-UP! If this keeps on for a few more hours, I'll have cash for a house!
Things get interesting now for savers. Will the banks continue to pimp 5% (or so) CD rates in an effort to entice their deposit customers to stick around?
I mean, it's not like they need cash right now to dress up their balance sheets. [/snark]
Or do the banks immediately drop CD rates by 0.5% and dare savers to hit the road.
Fun, fun, fun in the months ahead.
Gold up (Kitco shut down website), DJIA up 250, oil at record high, real estate not moving, banks saved for now.
Ahhhh. Thats better.
Maybe I will now demand that my employer pay me in ounces of gold.
This from kitco site..
IMPORTANT:Due to technical difficulties Gold pricing being displayed is incorrect. We will not be able to honor any orders at this time. We are currently working on the issue and anticipate resolution shortly. We apologize for the inconvenience and appreciate your patience.
Anon 7:58 is right.
The real cost of borrowed money is:
Rate*(1-taxbracket%)-Inflation.
So if inflation skyrockets, you could wind up getting "paid" to hold the loan.......
Go look at the chart of dollar vs. euro. The dollar is almost straight down. Check the chart for oil price....straight up. You're doing a heck-of-a-job Ben. Dumb trolls on this board are under the delusion that something good just happened.
DOPES probably thinks stocks are up for the year but he doesn't realize that thats because the dollar has melted down
The DOW is down for the year in Gold
PS I've got about $10000 sitting in cash i want to convert to Euros ASAP!
Any advice HPers???
DXDDX. It's a 2.5 times the dollar bear. make it quick
In case anyone is interested, I found this mutual fund that is designed as a hedge against a devaluing US dollar:
http://www.merkfund.com/
I am not sure if there are similar funds out there. But I thought I would toss it out there.
Good luck everyone.
GOLD AT 729 AND OIL AT RECORD HIGH IN DOLLAR TERMS
GET IT NOW SUCKERS?
"Will this make for a consumer rally for the holidays?"
Probably not, since it will take more dollars to buy the same consumer goods.
The positive side (if there is one) is that a devalued dollar reduces the cost-savings of outsourcing, and makes cheap chinese crap a little less cheap, so perhaps our current account deficit will be reduced.
So, the sh!t sandwich just handed to the US consumer is at least being served on a light and flaky sourdough.
Everyone look at this cart of Euro Vs. Dollar:
To the moon Alice!
http://finance.yahoo.com/q/bc?s=EURUSD=X&t=1d
Anon said:" If this hyperinflation comes, who do you think will get fucked more, me or you? Hint: it's not me".
With all the forclosures coming, there will be multitude of homes on the market. Some will be bought and turned into rentals.
Being a renter, I can at least find a cheaper place to live. Its a heck of a lot better than living in "homeowner prison" where property taxes are spiraling out of control and homeowners insurance is going through the roof.
I know what I would choose.
Prepare yourselves for the now supreme Canadian Dollar !
Man, where the f#ck is senor dopes????
A frickin' .5 rate cut?
Read the Fed statement dopes? Seems things are somewhat f#cked up.
But hey, when you celebrate the Dow's gain today, make sure to correct for the loss in value of the greenback.
Charles said...
PS I've got about $10000 sitting in cash i want to convert to Euros ASAP!
Any advice HPers???
Everbank is a possibility, but you can use an EU ETF, and get the same result. I'm moving everything out of the dollar as well.
This move is aimed at the liquidity crunch and the general economy, and well-aimed IMO. Foreign holders of long-term US debt (like China) have more to say about where the dollar goes than the fed does, and I'll bet BB's been on the phone to all of them before doing this. They will manage the dollar down if they can, China doesn't want a meltdown before the 2008 Olympics and before they can roll their dollars into hard assets.
So like, what's really changed as far as housing is concerned? All those ARM resets still gonna happen? Yep. Interest rates (tied to LIBOR) still too high for the FBs? Yep. Upside-down FBs still not able to refi? Yep.
No, IMO it's up to congress to bail out the FB's now. All the Fed's done is try to keep the economy and the financial system oiled up while the real mess (bad loans) is sorted.
Things get interesting now for savers. Will the banks continue to pimp 5% (or so) CD rates in an effort to entice their deposit customers to stick around?
Decaf said:"I mean, it's not like they need cash right now to dress up their balance sheets. [/snark]
Or do the banks immediately drop CD rates by 0.5% and dare savers to hit the road.
Fun, fun, fun in the months ahead".
This is true. Banks kept dropping rates 4 years ago to get buyers on board to mortgage hell.
now, banks need to build up reserves because they can't sell their "toxic" loans anymore.
midas said...
Beware gold bugs - now they have to whack bullion prices to prevent a rout. There is a "golden" buying opportunity dead ahead.
Gold is up 9.80 since the cut per CBOT. Gold sits at 725, silver is up .25 at around 13 and oil is at 82. The dollar/asswipe paper is down .51 at 79.03 and going lower.
I can't freakin' believe it. I am truly stunned. I can't believe they are acting so irresponsibly. Gold, Oil and the Dollar are going to go truly insane in the next couple of days. Food prices are going to go through the roof. We are going to get screwed at the pump and at the grocery store and they'll sit there and claim it's 2% inflation.
I am simply floored. I hope the Asians FINALLY WAKE UP and screw the US$ and t.bills BIG TIME this week.
Thats it. I'm toast. This is my last post as devestment. I am changing my nickname to sheeple, geting a new picture, and changing my attitude.
http://tinyurl.com/ystl69
Talk about obvious....don't bother collecting any more dollars, there will be puuuullenty to go around here real quick.
This is what you get when you let republicans run the Fed for decades. They create socialism for the wealthy.
You voted for it, now eat it.
Doesn't anyone find it curious that CNBC is trotting out all the Bushie administrators to sell this?
I feel like I'm sitting in that little room at the used car dealer.
Some people have such a short memory. Greenspan cut rates down to about 1% and the stock market (S&P 500) lost 50% of it's value over a couple of years. Stock valuations are always tied to fundamentals in the long run.
my mortgage is fixed at $1700 a month for the next 26 years. Can you say that about your rent? If this hyperinflation comes, who do you think will get fucked more, me or you? Hint: it's not me.
No, your housing expenses are not fixed. Don't forget about property tax, maintenance, and home insurance. These will all increase due to inflation. You will be hurting just as bad when municipalities start cranking up the tax rate to compensate for the sagging value of the dollar. Plus you're trapped in local job market. As a renter I am free to follow jobs to any region in the country (world) that suits me. Plus, 9.7 percent of homes and rentals are vacant, giving land lords little power to boost rent. I told mine this year that I'd pack my bags if he increased my rent. Guess what, he decided not to.
Baaa. Baaa... Baaaaa.....
burp.
"Anonymous said...
my mortgage is fixed at $1700 a month for the next 26 years. Can you say that about your rent? If this hyperinflation comes, who do you think will get fucked more, me or you? Hint: it's not me.
September 18, 2007 7:58 PM"
Hmmm.... assuming the economic problem isn't serious, then you. If it is serious then the dollar loses a lot of value, many become unemployed, taxes go up to support the bond market (there's already too much debt there so cuts can't do it alone), and crime goes up considerably. You may not want to be tied down to such a life.
Uncle Ben's just bailed out his buddies in Goldman Sachs
I trust you are now buying as much real estate as you can afford, just make sure that you fix the interest rate
also
Buy Citibank
Buy Goldman Sachs
Buy Lockheed
Buy Countrywide
Don't buy gold, remember gold bug suckers held the yellow metal all the way through the inflationary 80s, 90s and the price went down
The economic system is rigged in favour of wall street, so you should invest as they do - assets that do well in an inflationary environment
Next up - they are going to bomb Iran, so buy shares in the bomb makers, Oil companies and CNN (think of the ratings!!!!)
Anonymous said...
my mortgage is fixed at $1700 a month for the next 26 years. Can you say that about your rent? If this hyperinflation comes, who do you think will get fucked more, me or you? Hint: it's not me.
September 18, 2007 7:58 PM
-----------
Why? Your home and household requires no utilities, maintenance, goods or services, no taxes etc etc etc? I guess you live on the moon and will be completely unaffected by the inflation stoked by today's move?
And, right on cue:
http://tinyurl.com/28hu4y
And this seems to confirm my intuition that today's cut changes nothing for FBs:
http://tinyurl.com/ypgg4x
GOLD TO DA MOON ALICE!!!!!!!!
1/2% cut, Cue the Trolls until the euphoria wears off and everyone realizes it will do absolutely nothing to stop the market forces that are currently in play.
Hmmm
Would I rather have my money tied up in a depreciating house bought and sold in a depreciating currency,
or
have rapidly appreciating precious metals?
I just paid $1.99 for Chicken McNuggets. They were 99 cents for 6 afew years ago.
INFLATION SUCKS! get ready to pay $4 for Chicken McNuggets.
WHO WANTS TO BET DOW HITS 14K TOMORROW!!!
Maria Bartaromo is the worst.
"The Dow is up [and I'm horny as hell!]"
Yeah, why not talk about the dollar to be fair and balanced Maria?
Anonymous said...
Aren't ARM's tied to Libor and not the fed funds rate?
September 18, 2007 7:52 PM
--------
Yes most are, and its still over 6% so any ARM that adjusts amt X over Libor but no more that annual cap Y and/or absolute cap Z is going to still trigger a significant increase in terms of rate & monthly payment. The actuaries did their homework and knew better that to link it to a rate directly controlled by gov't to prevent the very thing they are hoping for, easing the pain of ARM resets!!!
It may ease things a bit, but if you recall Greenspan's interviews this week, he said they were astounded that after 2 years of fed funds rate increases mortgage rates did not tick up until the very end due to other new efficiences in the market. So who are they fooling?
That dollar scan will get your butt arrested quick Keith old buddy. You might find yourself in handcuffs next time you hit the ground in Vegas. Let's face it, you don't have many friends by spreading the truth...
WTF is up with gold prices? CNBC's ticker shows $723 and DOWN for the day? I'm not quick to believe in conspiracy theories, but WTF??? Don't want the sheeple to know it's at $735.50 (Bloomberg still shows it). And ya, what's up with Kitco? Isn't this blatant market manipulation and outright LYING by the MSM and gold web sites ILLEGAL???
If they're going to screw the USA for short-term gain, at least have the balls to show the real-world effects.
I'm watching CNBC closing bell right now and I haven't yet heard 1 mention of the gold price or the fact it's going through the roof.
http://www.businessweek.com/ap/financialnews/D8RO0C6O0.htm
Did not help home builder confidence to drop to a historic low of 20!!
http://www.businessweek.com/ap/financialnews/D8RNVDN80.htm
Beazer still downsizing, under federal investigation, fighting a NOD and discounting homes like crazy to reduce inventory!!
The fed has spoken and so have the people. I am for the people. Get out of debt people!!!
U.S. Home Foreclosures Soar in August
Tuesday September 18, 3:13 pm ET
By Alex Veiga, AP Business Writer
U.S. Home Foreclosures Soar in August, Up 36 Percent From July
LOS ANGELES (AP) -- The number of foreclosure filings reported in the U.S. last month more than doubled versus August 2006 and jumped 36 percent from July, a trend that signals many homeowners are increasingly unable to make timely payments on their mortgages or sell their homes amid a national housing slump.
A total of 243,947 foreclosure filings were reported in August, up 115 percent from 113,300 in the same month a year ago, Irvine, Calif.-based RealtyTrac Inc. said Tuesday.
There were 179,599 foreclosure filings reported in July.
The filings include default notices, auction sale notices and bank repossessions. Some properties might have received more than one notice if the owners have multiple mortgages.
August's total represents the highest number of foreclosure filings reported in a single month since the company began tracking monthly filings two years ago.
The national foreclosure rate last month was one filing for every 510 households, the company said.
"The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable rate loans are beginning to reset now," RealtyTrac Chief Executive James J. Saccacio said.
The mortgage industry has been rocked by a surge in defaults, particularly among borrowers with subprime loans and adjustable rate mortgages that initially had attractive "teaser" interest rates but then can adjust upward, resulting in a payment shock.
Many of the loans, some of which adjust in as little as two years, were issued in 2005 and 2006 during the height of the housing boom.
Lagging home sales and flat or decreasing home prices have also left homeowners unable to make their mortgage payments hard-pressed to find buyers.
The latest figures also reflect an increase in the number of homes going into foreclosure that are not being picked up in estate sales and are ending up going back to lenders.
The number of bank repossessions jumped to 42,789 in August, compared with 20,116 a year earlier, the RealtyTrac said. In July, there were 26,842 bank repossessions.
Nevada, California and Florida had the highest foreclosure rates in the country last month, the firm said.
Nevada reported one foreclosure filing for every 165 households -- more than three times the national average. The state had 6,197 filings in August, an increase of 21 percent from July and more than triple the year-ago figure.
California's foreclosure rate was one filing for every 224 households. The state reported the most foreclosure filings of any single state with 57,875, up 48 percent from July and an increase of more than 300 percent from August 2006.
Florida had one foreclosure filing for every 243 households. In all, the state reported 33,932 foreclosure filings, up 77 percent from July's total and more than twice the year-ago total.
Georgia, Ohio, Michigan, Arizona, Colorado, Texas and Indiana rounded out the 10 states with the highest foreclosure rates.
Bernanke basically pulled out the crack rocks, spread them out on the table and told Wall Street to start smoking. Eventually it wears off and we get back to reality.
How's it feel to know you missed out yet again HP? Nice predictions that the fed would raise. God what idiots you people are.
Keer renting and putting your money under your mattress.
Uh, like the dollar in the toilette won't affect your pathetic salary, too. Hey buddy, unless you have put most of your money and assets overseas, you are in the same sinking boat. So don't try to play superior here because your dollar is also worthless like anyone else's working in the US. HP'ers didn't miss crap, as a matter of fact HP was one of the few souls predicting this very day of shame.
the cut won't helo housing eh? Hovnanian was up 15% today after the cut.
You renting fools keep praying to the crash gods, not gonna help. You don't think 4.75 is as low as it goes do you? Look for 3% 6 months from now. The $417K cap is going to $600K too.
Translation: renters are screwed once again.
Too bad, so sad. Thanks for playing. Better luck next time.
Oh yeah, the 90% of the American population who earn 30k per year (no benefits) will go in a shopping spree now, financing $400k homes and $70k cars. All that because Bernanke lowered 50 points. Wow, now Bush's pathetic economy will take off to the moon and the banks will trust each other to lend money. Everybody is rich again, let's celebrate!
/sarcasm off
Well, I guess we ran out of bubbles now to pump this lie called the American economy. Bernanke can lower as much as he wants...won't make a dent.
"Those of us foolish enough to live conservatively and save have just been thrown under the bus. 50 basis point drop in both the federal funds rate and the discount rate. Wow, just Wow."
Anonymous, have you not figured out by now that the fed was looking at jobs and at consumer sentiment. That is 75% of our economy. This economy does not live or die by responsiblity, it lives and dies by consumption. The government DOES NOT WANT you to save money and put it away. They want you to invest in stocks, buy houses, buy cars etc. And they WILL do whatever it takes to make sure that does not slow down. DO NOT bet against the fed. That is the culture. Like it or not. This has just turned from a housing crash, to a housing correction. And telling from the sales this weekend at the K Hovanian properties (at least around here) most of the interest was there all along, it just needed a lower price, not a crashing price. Now with inflation coming back, get ready cause here we go again. The MSM will highlight this, and the folks that have sat on the sidelines are going to start buying. Slowly, but they will. They needed a bottom, and the fed just created it.
It may be stupid, but it is life. Simply invest in oil, gold and whatver you can that will appreciate. Don't fight it, just profit from it.
Down with Bernanke.
Down with Greenspan.
Down with the Fed.
Down with the banksters.
Pull your money out of the banks.
Pull it out now and DESTROY them.
Anonymous said...
Aren't ARM's tied to Libor and not the fed funds rate?
September 18, 2007 7:52 PM
ARMs are mostly tied to the Libor Rate. Bernanke didn't cut to save idiots with ARMs. He cut to try to prevent the economy from going into recession. But it won't work. Increased liquidity has little short term effect. We are heading into a severe recession and nothing can stop it.
"who do you think will get fucked more, me or you? Hint: it's not me."
do you work for NAR?
Bwhahahahahahahah!!!!
Now you get it??
The US government could give a shit about you or yours...they have defined you as a useless eater.
I say again...
It hath been foretold.
Enjoy the dieoff!
the orange one is happy to be bailed out tinyurl.com/29sq6n
hes having a good laugh
Implosion of the housing market, collapse of the dollar, the rise of gold, it's all happening.
You fools who said it wouldn't happened are exposed as the economic idiots I've been saying you are.
I also said again and again that you should be buying gold on dips, and was called a fool for saying it. In yer face, ya 'tards.
Have a nice day.
There is one tried and true way to save the USD - it's called war...
_____
We'll be bombing Iran soon enough.
NOT KIDDING.
Amazingruss Said: $1700 a month for the next 26 years. Can you say that about your rent?
No, I can't. My rent in the Bay Area has gone from 1400 to 1900 as I moved into better homes over the past 8 years.
But what I can say is that I've saves so damn much money that when the million dollar properties drop in value to 600,000 in a few years I am ready to pay cash.
You, on the other hand will still have 25 years of 1700 a month to pay in rent.
HAHAHAHAAHAHAHAHAHAHAHH!
Whoz the sucker???
Well, tin foil hat on.
Welcome NAU and the AMERO, I reckon. Nothing else makes any sense.
We all just fell down the rabbit hole to have tea with Alice and the Mad Hatter.
Tin foil hat off.
Should be vey interesting to see the run on US banks now. Way to go Fed. The writing couldn't be any clearer - US dollars are worthless. If the world didn't understand that before today, they certainly must now. I for one am moving my dollars elsewhere, the Euro is the first thing that comes to mind. Any other suggestions out there (besides precious metals)?
I just can't figure out how this cut will help the economy. There are too many problems with the housing market, and the consumer and everything else are tied closely to it. These lower rates will not help attract the lenders who are covering the countiry's debts. The fed has effective control over inflation when it raises rates, but the opposite is not always the case. They are throwing gasoline on the fire. It is clear they want to inflate away the massive debt.
keith,
This blog rules. Period.
Keep up the good work. Same goes for all of the many other commentators who post on here.
To all of you who said last week/month/year "move into cash! move into cash! get out of equities!"...
F.You. I have missed out on the most massive financial bubbles in history. My conservative ways have left me in the dust with savings that will be making 4.5% now (was 5%)? After inflation it's negative I'm sure. I'm frozen out the stock market, frozen out of buying a house in CA, savings eroded by inflation, overseas travel is now going to be horridly expensive. You don't want to buy at peaks, you tell yourself, but stocks going down 5% now seems to be quasi-illegal; there are no more peaks, only straight up. Dopes had it right all along folks. Hard working savers/renters like me are f**ked in the a** in the good old USA.
Maybe it's best to buy into everything right now and just ride the shit to the moon?
What's next? Keith, someone, give me hope that all this madness will play out in the favor of prudent conservative investors? Someone with a historical perspective?
I keep hearing "this is going to end badly" over and over on this blog. Well, equities are doing just fine now thank you...and I'm in cash.
I know you're thinking "crybaby" but dammit it sucks being thrown under the bus when you try to do the right thing.
e just trying to force the savers money into their cronys wall st stocks so it can get ripped off with mergers, buyouts and hundred million dollar salaries, or receive less than half the rate of true inflation which does not include the calculations for housing, food , insurance, health care, gas or energy or taxes, all sky rocketing...should have thought typical?
had to prop up the property prices as he did not want the local governtment tax revenues to not keep pouring into the hands of crony crooks
These bastards are screwing our future.. This rate cut is going to hose the dollar and cause inflation without any real effect on the ongoing real estate collapse..
So not only will there be a lot of unemployment and underwater/foreclosed/house-poor home owners but now what is left of their lifestyle will also take a dive.
And do you really think that the weak USD is going to stop or even slow out-sourcing. The sociopaths that run the companies do not care as long as their options and dividends do not take a hit. They will just keep on exporting jobs, keeping wages down.. heck they might even invest more abroad to make up for poor demand in the US.
Does anyone want to start a business selling flammable effigies of AG, BB and other morons.. They should be popular in about 8 months from now..
his method of continuous dollar devaluation is the method that forstalled the german depression that lead to world war 2 after the super elites changed it by making it illegal
The blood suckers are out in full force already. I got this "notice" from lending tree just a few moments ago. Get ready for the lies and deceit.
http://marketing.lendingtree.com/stm/emails/images/1125960.htm
Anonymous said...
my mortgage is fixed at $1700 a month for the next 26 years. Can you say that about your rent? If this hyperinflation comes, who do you think will get fucked more, me or you? Hint: it's not me.
September 18, 2007 7:58 PM
just pray you dont get laid off or sick!
Glad i put my money in G/S stocks the other day, i'll be in and out before you know it. lol
So. I have roughly 30, currently in bear stocks and short funds against the dollar, which meant i lost a good bit today. I am thinking i should take 20k of it out, and put it into one of the foreign currency 3 month cds at everbank, possibly splitting 10 and 10 into euros and swiss francs. They also seem to have general foiegn currency accounts that look like they get no interest. This was my house fund, but since I'm not putting down a down payment anytime soon, time to bail. Suggestions? Concerns? recommendations? Traps im missing? Already have some precious metals, too inexperienced to play with shorting. Love to hear suggestions.
just saw on kudlow
the orange orangutan is crying hes needs another 50 basis points
I am starting to learn to speak Chinese next week. My Spanish is not that good but I know enough to get by. This will come in handy when the Amero rolls out as part of the North American Union and DEATH of the middle class.
Ben esta muy loco..pinche puta maricon!
Man is this going to backfire on the Fed. Bernanke lost all credibility today. For the last year Bernanke has emphasized the importance of containing inflation, with that being the primary concern of the Fed. Today however, the Fed agressively lowers interest rates and implys future rate cuts to come. This on top of a recent infusion by the Fed of billions of dollars into US markets. These actions fuel inflation, not fight it. Bernanke talks the talk, but definitely doesn't walk the walk. I've been reading comments from my investment circles and everyone is saying the same thing - no confidence in the Fed after today. Everyone now wants out of US dollars. Wall Street gets a victory while this nation loses its financial credibility. Way to go Fed.....
I'm diversifying into hookers and blow, as of now.
AmazingRuss......best line EVER!
HPers lend me your ears!
Like I Predicted 2 days ago on a post here.
1/2 point cut and housing panic closes!
Now we have true divsion in the U.S. Between the poor and the rich. I don't exactly agree with this 1/2 point cut but I knew it was coming.
I really feel sorry now for the renters and the people doing the right thing.
What no one bet on was that there is a middle class, its a global middle class that excludes the U.S. Think about that!
You get no credit unless you post your handle anonowussy!
"my mortgage is fixed at $1700 a month for the next 26 years. Can you say that about your rent? If this hyperinflation comes, who do you think will get fucked more, me or you? Hint: it's not me."
Um...you assume you will still be able to make payments of $1700 for the next 26 years. The US economy is built on speculation with smoke and mirrors. We don't build or produce anything of real value except weapons and pornography.
Your income source goes away = you lose your house and it is hard to file for bankruptcy protection.
A renter just breaks a lease, makes the penalty payment, and gets a new place that he can afford.
You clearly have not thought this through.
Well i got mu head handed to me today.I went short via the QID at 10:30 and got hammered.I have not sold and will hold my position for awhile.
This guy is as clueless as the old, senile fart.
No, this isn't going to save the housing market and nothing will. But I think some people are missing the point. With the housing collapse and job losses we get reduced pressure on commodities and less disposable income. Now the fed cuts the rate and the dollar spirals further downward.
So now it becomes less expensive to purchase US goods and services and their is less cost to produce such due to a larger unemployed pool of workers. And yes this country still manufactures goods. US deptartment of labor stats show we are producing more than ever before.
Since the dollar is low there would be a corresponding increase in demand for US goods and services which will increase the demand for the dollar and increase its value vs foreign currencies.
This usually work suntil inflation kicks in and the fed increases rates to slow demand down.
Will there be a recession....yep. How bad? Not as bad as the late seventies early eighties. The US after getting the crap kicked out of it by Japan has become more flexible and adaptable. I'm guessing a early 1990's type recession. Assuming nobody screws around with trade barriers and tariffs.
I know this post is out of sorts. No exclamation points, no glee, no name calling, no shilling Ron Paul.
Ahhh for the days when this was a rational website.
I think this says it all. http://preview.tinyurl.com/3ykk6c
my mortgage is fixed at $1700 a month for the next 26 years. Can you say that about your rent?
Ah, but your property taxes are going to SOAR as the "assessed value" of your house soars.
Mix in basis rate increases on the tax rate with increases in "assessed value," and your monthly payment including taxes will be growing much, much faster than my monthly rent payment. Let's not even talk about your skyrocketing insurance prices as those companies seek to recoup their losses by hiking premiums on your fire, flood and earthquake coverage.
D'oh!
If anything, both renters and homedebtors are screwed, but renters can up and move to a smaller or cheaper place in another part of town (or the country) with 30 days' notice. Homedebtors have to spend weeks or months convincing some poor sucker to take over their skyrocketing property taxes and insurance rates. Ouch.
I can see buying precious metals
But why buy Euros
It is temporarily higher as the ‘anti dollar”
There is nothing behind the Euro
I love the smell of a brand new 2007 $100 bill! Yum!
I just wish I had a job. :(
Ah, but your property taxes are going to SOAR as the "assessed value" of your house soars.
_______________________________
wait just a minute, if housing valuations are deflating, then taxes are assessed on value, then they should go down respective to the houing declining market right?
and
my mortgage is fixed for 28 years
________________________________
Also, if you bought a mortgage in say, 2006 dollar value, and as the USD declines in purchasing power, isn't posters debt service lighter, as it is paid for with inflated dollars?
So, as rents rise, posters mortgage is a safe haven?
Just as I predicted late last week all of the TOTAL IMBECILES on cable news are celebrating the surge in the market based on the promise of more dollars chasing goods and services.
The phoney wealth created by the bubble was bad enough. People were buying luxury cars, clothes, and meals based on money created by doing NOTHING OF ACTUAL REAL VALUE!!!!
This move will amplify this effect.
BTW, inflation is already here! Pet food I used to buy went from 94 cents a can to $1.07 in the past month. A glass bottle of orange juice I buy went from 99 cents (had been that price for years) to $1.25 last week.
I think $5 gasoline will be here before next summer.
.
The paper dollar,
uses.....
ass wipes
blow inhalers
can't think of much else
.
I have been reading HP.com for about 9 months now and know that what Keith has been saying is true about the housing market. But I have learned something in the past: you can't fight the Fed. If you do, you will creamed in the long run. The Fed told us today what it's going to do: reduce, reduce, and reduce rates as long as they have to. This means the market will go up, up, and up. This week I will look to move my cash position into equities, mostly foreign mutual funds (where they were before). I'll also look at the Euro.
Housing prices will still come down, but it may now not be as bad as I think people believe. Why? Because of the lower interest rates and other bailout measures now taking formation (like raising jumbo loans above $417k) and the govt. covering subprime/alt-a loans.
The powerful forces in the country have conspired to bailout all those flippers and speculators in order to save the uneducated innocents who got in over their heads and the irresponsible financial institutions that should have paid the price. This is now clear. It's not right, but the Powers have spoken.
My final words: don't fight the Fed. You will get creamed.
Anonymous said...
Those of us foolish enough to live conservatively and save have just been thrown under the bus. 50 basis point drop in both the federal funds rate and the discount rate. Wow, just Wow.
September 18, 2007 7:35 PM
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Adapt to changing circumstances. The government is corrupt, irresponsible, and incompetent. Save your money in a form that can not be stolen as easily. Inflation is the easiest way for the government to steal money from its citizens. By far the easiest.
Anonymous said...
How's it feel to know you missed out yet again HP? Nice predictions that the fed would raise. God what idiots you people are.
Keer renting and putting your money under your mattress.
September 18, 2007 7:54 PM
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Dopes, I see you're back. The rate cut won't stop housing from cratering, but it's really helping out our investments in gold, silver and oil. Pretty soon we'll be able to buy your foreclosed McMansion (from the bank) for a handful of gold coins.
sheeple 8.48 pornographic????keith in vegas this week, housing panic under new management and ownership next week, eat well buddy while we sort out this game of Whose the Sucker tm. before we cannot afford to play any more
For those that think the devaluation of the dollar will help reverse offshoring, you must realise that many of the people employed offshore earn $1/day, for 12 hours or 8c/hour so as minimum wage in the US is $5.85, the dollar has to lose 70% of its value to compete, I can't see that much devaluation and the dollar not being dumped as the reserve / commodity pricing currency which means the dollar will be completely dead as a form of exchange, even within the US. This will be bad for Americans, but great for the rest of the world as their will be no money to finance attacking other countries so the world will be much more stable. Inside the US obviously there will be social, political, and perhaps even military turmoil, this will not happen overnight, I'd give it atleast 2 years for the sheeple to wake up to what has happened and to get very angry. As for today, well what did you expect? It doesnt fix anything, people who shouldnt have had mortgages still have rates to reset to x+LIBOR, foreclosures will still rise, subprime mortgages will never come back, and the investment banks and hedge funds are still trying to hide the blood stains, things have gone so far there is no turning back.
Wallflower said...
To all of you who said last week/month/year "move into cash! move into cash! get out of equities!"...
Where did anyone say to stuff your mattress with $US?
amigauser said...
...
Don't buy gold, remember gold bug suckers held the yellow metal all the way through the inflationary 80s, 90s and the price went down
The economic system is rigged in favour of wall street, so you should invest as they do - assets that do well in an inflationary environment
...
September 18, 2007 8:49 PM
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Hmm... assets that do well in an inflationary environment? Dude, that would be GOLD, silver, and oil.
dopes and fish asre right, as fishy as it may be.....
"And yes this country still manufactures goods. US deptartment of labor stats show we are producing more than ever before."
Yes I suppose it does if you count burger flipping and hair dressing as manufacturing!!
Anonymous said...
Down with Bernanke.
Down with Greenspan.
Down with the Fed.
Down with the banksters.
Pull your money out of the banks.
Pull it out now and DESTROY them.
September 18, 2007 9:43 PM
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They don't need your money. They can print their own.
But they can't print gold, silver, and oil. Got it?
Wallflower said...
...
What's next? Keith, someone, give me hope that all this madness will play out in the favor of prudent conservative investors? Someone with a historical perspective?
...
September 18, 2007 10:20 PM
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If you're talking intermediate- to long-term, there is NO SUCH THING as a conservative dollar-denominated investment. You might want to consider dollar-cost averaging into investments related to resources and energy.
Getting to cash worked in the 1930s when the dollar was literally as good as gold. Now the dollar is an unbacked IOU issued by a country in decline.
For a bit of perspective, take a look at the currency crises in Mexico and Argentina.
Anonymous said...
...
I've been reading comments from my investment circles and everyone is saying the same thing - no confidence in the Fed after today.
...
September 18, 2007 11:21 PM
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No confidence after today??? What took you guys so long???
Actually, the dollar has been dead AT LEAST since 1971, when it became a pure fiat currency.
Can someone tell me how to move USD into other safer currency or where is a good place to park money. I'm totally new to currency trading I haven't a clue. I curently earn 5.5% through eloan
I have 30K to invest where do I start?
Why would he do it?
I think it comes down to self-preservation. For all of those he screws (everyone on Main St - "dollar devaluation" robbery), the SHORT-term positives make those in power (Wall St, politicians) happy. He's drunk off his new found fame and has sacrificed the country to keep it. Sad day for America.
Prediction: Clinton-like (pragmatic, poll-based BY THOSE IN POWER - important because WE don't get a vote) management of the Fed. Once inflation really starts biting, we'll hear the Fedspeak. But he proved today he's out of bullets.
I make 100k+ (engineer) but I really feel for those making very little who will be making even less and not even know why it's happening.
The hookers and blow comment is inspiring.
Bernanke is a DOPES!
Hmm... assets that do well in an inflationary environment? Dude, that would be GOLD, silver, and oil.
And real estate. Also remember that anything can be the subject of a speculative bubble. Gold crashed after peaking at $850/oz, and stayed down through decades of additional inflation. Obviously the peak was a bubble. This underscores another problem with assets such as gold and real estate, which is that holding them may protect against inflation over long periods of time, but they don't add value in real terms, the way businesses can.
I have missed out on the most massive financial bubbles in history. My conservative ways have left me in the dust with savings that will be making 4.5% now (was 5%)? After inflation it's negative I'm sure.
The truly conservative strategy is diversification. That is why I have stayed in RE despite the bubble, stayed in stocks both here and abroad, CDs, munis, and commodities. Type "Asset Allocation" into Google and study up - it's not too late.
And yes this country still manufactures goods. US deptartment of labor stats show we are producing more than ever before."
Yes I suppose it does if you count burger flipping and hair dressing as manufacturing!!
September 19, 2007 1:49 AM
How true. This country has gone from being the greatest producer nation in the world to a broken down post industrial crap hole.
Had President Kennedy not been assassinated this terrible change over these past four decades could never have occured.
(From Australia) So is it dumb if I use $10,000 (Australian) to buy put options on US stocks while the market rides the wave of relief following the rate cuts? Seems like the best time to buy put options. But the money's going to melt away once I put into that US account.. (I'm buying gold and oil too, in Australian dollars).
Anonymous said...
Hmm... assets that do well in an inflationary environment? Dude, that would be GOLD, silver, and oil.
And real estate. Also remember that anything can be the subject of a speculative bubble. Gold crashed after peaking at $850/oz, and stayed down through decades of additional inflation. Obviously the peak was a bubble. This underscores another problem with assets such as gold and real estate, which is that holding them may protect against inflation over long periods of time, but they don't add value in real terms, the way businesses can.
I have missed out on the most massive financial bubbles in history. My conservative ways have left me in the dust with savings that will be making 4.5% now (was 5%)? After inflation it's negative I'm sure.
The truly conservative strategy is diversification. That is why I have stayed in RE despite the bubble, stayed in stocks both here and abroad, CDs, munis, and commodities. Type "Asset Allocation" into Google and study up - it's not too late.
September 19, 2007 6:36 AM
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Real estate, eh? Yeah, real estate did well in the stagflation of the 70s and would NORMALLY be a good bet for the stagflationary years ahead... if it wasn't in the process of collapsing from a spectacular bubble, that is. There is no such thing as something that is "always" a good investment.
As for "adding value," well oil stocks and mining stocks do that, as long as the companies are not too mismanaged. So does real estate purchased at reasonable prices, if you rent it out at a profit or live in it (i.e., rent it to yourself).
"Can someone tell me how to move USD into other safer currency or where is a good place to park money"
I just bought Merk Hard Currency, USAA Precious Metals, Vanguard International Value, and Vanguard Energy funds.
None of them hedge against the dollar so I will win if the dollar drops and lose if it rises.
P.S. I might be a moron so:
Don't listen to me.
Don't invest in anything you don't understand.
Don't invest in currencies or equities for the short term or with money you can't afford to lose.
And do your own research (morningstar.com is free at your local library).
And yes this country still manufactures goods. US deptartment of labor stats show we are producing more than ever before.
Oh yeah, the economy is booming, that's why Bernanke just killed the dollar. [Insert logic here, rinse twice]
This economy never was great. The US economy has been living off bubbles and selling assets to foreigners (American ports to Dubai, hello?) for decades, since we don't manufacturer crap anymore. And that's why this economy needs to pump millions of illegals every year to depress wages and inject more buyers for junk food, crappy American cars, housing, etc.
Downfall of the American empire that never was.
I'm totally new to currency trading I haven't a clue. I curently earn 5.5% through eloan
I have 30K to invest where do I start?
ETF
"Will this make for a consumer rally for the holidays?"
Probably not, since it will take more dollars to buy the same consumer goods."
Only if you have a euro or something stronger than the dollar, meaning no happy holidays for the domestic shopper but if you are in Europe hell yeah!
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