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Why The Fed's Rate Cuts Won't Help You

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http://articles.moneycentral.msn.com/Inves...u.aspx?page=all

The Federal Reserve today continued its attempt to get out in front of the worst financial crisis to hit the world banking system in five decades by slashing short-term interest rates by three-quarters of a percentage point, to 2.25%, the lowest level since 2004.

But the Fed's effort will have little effect on the ability of the average American to get a cheap loan for a new home, car or college education even as it has a large effect on U.S. banks' ability to fix their balance sheets by racking up fat profits.

If that sounds unfair, welcome to the latest episode of a brutal new American business ethic, in which the government bails out bad bets by risk-taking banking executives in New York with money that it borrows from middle-class families and foreign investors. The effort is gilded with fancy financial language and cloaked in the guise of a rescue that helps all citizens, but the reality is that Washington is essentially robbing the poor to help the rich.

seems like its going mass market now.

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Whilst ridiculing the Japanese's response to their own deflationary spiral, the US government appears to be unable to do anything but follow in their footsteps. Anyone tell me whats different so far?

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Whilst ridiculing the Japanese's response to their own deflationary spiral, the US government appears to be unable to do anything but follow in their footsteps. Anyone tell me whats different so far?

its different this time, thats what they say.

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Whilst ridiculing the Japanese's response to their own deflationary spiral, the US government appears to be unable to do anything but follow in their footsteps. Anyone tell me whats different so far?

All of America's foreign held debts are denominated in USD (ie their own currency).

Was all of Japan's debt denominated in Yen? (I'm asking 'cos I genuinely don't know).

I seem to remember that Argentina's debt was denominated in USD (ie NOT their own currency), which meant that printing money didn't help at all in paying off the foreign held debt and so default was their only option.

Doen anyone have a break down of what currencies Japan's debts were in?

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this socialisation of the mega debt to preserve the mega weatlhy is IMHO one of the most appalling acts (other than wars and ignorant/deliberate policies of starvation) in any ones lifetime :(

I'm not sure it is preserving the wealth of the mega wealthy, ask Mr Lewis. All those Bear executives had had 99% cut off from their substantial stock holdings. Expect layoffs and massive wage and bonus reductions. Don't worry you'll get to indulge in plenty of schadenfraude.

If financial system breaks, and believe me, it could in this environment, we will all be living in hooverville and houses will be the last of our worries.

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Guest Steve Cook

captialism on the way up

socialism on the way down

Only joking folks......... ;)

There is no such thing as capitalism

It's just an illusion

It helps to give the massess an illusion that gives them a reason to allow the elites to hold onto their power and build on it by screwing the lower orders

However, the illusion becomes rather difficult to maintain under such circumstances as the present though.

It's at times like this that the peasants can get restless.

Potentially interesting times ahead maybe.

Edit: then again....who am I kidding?.....they've had centuries of practice

Edited by Steve Cook

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I bought a case of baked beans today. excellent value as you get about 355 beans in each tin.

Ill be planting them tomorrow.

Any gardeners out there know if i should dig in with the sauce and which compost to use please?

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Guest Steve Cook
I bought a case of baked beans today. excellent value as you get about 355 beans in each tin.

Ill be planting them tomorrow.

Any gardeners out there know if i should dig in with the sauce and which compost to use please?

:lol:

Actually, Bloo Loo. I've got a feeling that the cooking process involved in the canning of the beans will have destroyed the genetic material contained in them sufficiently to render them unusable for sowing....

edit: I could be wrong....and am happy to stand corrected

Edited by Steve Cook

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Guest Steve Cook
:lol:

Actually, Bloo Loo. I've got a feeling that the cooking process involved in the canning of the beans will have destroyed the genetic material contained in them sufficiently to render them unusable for sowing....

edit: I could be wrong....and am happy to stand corrected

Actually, I could be very wrong...in which case my apologies

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:lol:

Actually, Bloo Loo. I've got a feeling that the cooking process involved in the canning of the beans will have destroyed the genetic material contained in them sufficiently to render them unusable for sowing....

edit: I could be wrong....and am happy to stand corrected

ballocks - that guy was right- I really am a moron! :lol::lol:

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Whilst ridiculing the Japanese's response to their own deflationary spiral, the US government appears to be unable to do anything but follow in their footsteps. Anyone tell me whats different so far?

Eric Janszen at itulip has tackled this.

In the summer 2007, nearly 20 years after Japan's post credit bubble collapse and debt deflation began, the US started its own journey down credit crunch and bankruptcy lane. The demise in 1997 of Yamaichi Securities Company, the fourth largest brokerage firm in Japan, and the intervention by the Bank of Japan (BoJ) has eerie parallels to the Bear Stearns collapse and Fed intervention more than ten years later. But the differences between the two events are even more telling.

http://www.itulip.com/forums/showthread.php?t=3557

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I bought a case of baked beans today. excellent value as you get about 355 beans in each tin.

Ill be planting them tomorrow.

Any gardeners out there know if i should dig in with the sauce and which compost to use please?

I heard they can make them in a particle accelerator now. Not the time to invest in beans IMHO.

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Excellent point.

One reason maybe why the US may devalue but won't default....but we may do both! (assuming we have liabilities in other currencies including the dollar).

Bump.

Damn right it's an excellent point, but can anyone actually answer my question!

I've been digging around on the internet since I made that post looking for the answer but still no luck.

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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