Comments on: The Fed responds http://www.dinocrat.com/archives/2008/03/12/the-fed-responds/ Fri, 09 Jan 2009 04:36:25 +0000 http://wordpress.org/?v=2.6.3 By: Canucklehead http://www.dinocrat.com/archives/2008/03/12/the-fed-responds/#comment-302598 Canucklehead Thu, 13 Mar 2008 15:57:04 +0000 http://www.dinocrat.com/archives/2008/03/12/the-fed-responds/#comment-302598 The Fed is doing battle with "irrational exuberance". Everyone is second guessing the Fed's actions and ascribing to the belief that if the Fed acted sooner, all would be better. Is that really the case? The "book" on Fed action was built into the market. "Irrational exuberance" could flail away at the market knowing that any Fed action would be telegraphed by prior Fed actions. This would allow "irrational exuberance" to reach for new heights of stupidity as it was expected the Fed could/would always clean up after the party was over. I feel the Fed is doing the right thing. People need to take responsibility for their decisions/actions. The Fed is doing battle with “irrational exuberance”. Everyone is second guessing the Fed’s actions and ascribing to the belief that if the Fed acted sooner, all would be better. Is that really the case?

The “book” on Fed action was built into the market. “Irrational exuberance” could flail away at the market knowing that any Fed action would be telegraphed by prior Fed actions. This would allow “irrational exuberance” to reach for new heights of stupidity as it was expected the Fed could/would always clean up after the party was over.

I feel the Fed is doing the right thing. People need to take responsibility for their decisions/actions.

]]> By: OriginalFrank http://www.dinocrat.com/archives/2008/03/12/the-fed-responds/#comment-302586 OriginalFrank Wed, 12 Mar 2008 16:37:30 +0000 http://www.dinocrat.com/archives/2008/03/12/the-fed-responds/#comment-302586 OK, so the Feds are supporting the stock market and the demented mortgage-backed securities. (Now, granted the Fed is not officially the US government but it is to all intents and purposes acting as an arm of it.) How is that any different from a fully-socialized society and government? Tell you what, let's set things up to eliminate the middlemen - Wall Street. Let's just all make our mortgage apps directly to the IRS and repay them over time. It would be much more transparent and cut out the middlemen. OK, so the Feds are supporting the stock market and the demented mortgage-backed securities. (Now, granted the Fed is not officially the US government but it is to all intents and purposes acting as an arm of it.)

How is that any different from a fully-socialized society and government?

Tell you what, let’s set things up to eliminate the middlemen - Wall Street. Let’s just all make our mortgage apps directly to the IRS and repay them over time.

It would be much more transparent and cut out the middlemen.

]]> By: gs http://www.dinocrat.com/archives/2008/03/12/the-fed-responds/#comment-302564 gs Wed, 12 Mar 2008 01:28:46 +0000 http://www.dinocrat.com/archives/2008/03/12/the-fed-responds/#comment-302564 <i>Maybe we’ll consider additional negative pieces on the government’s financial management if their timing continues to coincide with market bottoms and rallies of this nature.</i> Heh. I've been commenting for some time that insider buying of US stocks became very strong as the market sank due to the housing situation. The continuing enthusiasm reported in my latest tracking letter seemed surreal given Monday's markets: surreal to the point that it seemed absurd to bring it up here yesterday evening. Maybe we’ll consider additional negative pieces on the government’s financial management if their timing continues to coincide with market bottoms and rallies of this nature.

Heh. I’ve been commenting for some time that insider buying of US stocks became very strong as the market sank due to the housing situation. The continuing enthusiasm reported in my latest tracking letter seemed surreal given Monday’s markets: surreal to the point that it seemed absurd to bring it up here yesterday evening.

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