Do some need to be struct by lightning to notice the storm?
2007-08-22 12:52:30 · 11 answers · asked by Chi Guy 5 in Politics & Government ➔ Politics
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The Fed injected $30 billion worthless dollars into the banking industry just recently and then they cut a rate afterward. What else can they do to slow this Titanic called bush's "booming" economy?
2007-08-22 12:57:38 · update #1
CHARITY G (below) Agreed. I give this stalled diaster to crash by the end of the year.
2007-08-22 12:59:30 · update #2
T D (below) Thanks for the insult/spelling correction. I forgot my perfect pill this morning...
2007-08-22 13:05:15 · update #3
Biggg (below) OK. So tell me then. Why did the Fed inject approx $30 billion into the banking system? Was it out of the kindness of their hearts? Or was it to stabalize the sinking economy?
2007-08-22 18:14:50 · update #4
Nah...the Fed gave the economy some aspirin.
Don't think those are precise economic terms, though...life support...aspirin...
You an econ major?
2007-08-22 16:15:41 · answer #1 · answered by ? 6 · 0⤊ 0⤋
No, maintaining liquidity in the credit markets is hardly 'life support' for the economy. More like aspirin: good for headaches and fevers, may reduce the chance of a heart attack in the future - but could also give you stomach ache or an ulcer.
The Fed definitely doesn't seem to have as sure a hand at the wheel as it did under Greenspan, though.
2007-08-22 19:57:49 · answer #2 · answered by B.Kevorkian 7 · 1⤊ 1⤋
I think you need to do some research about the Fed, its functions and the history of bond sales and purchases.
Seriously, you have no idea what you are talking about.
2007-08-23 00:22:36 · answer #3 · answered by Biggg 3 · 0⤊ 0⤋
You obviously don't understand basic economics. The Fed wants to keep rates high without harming the economy. If they deem the rates too high, they lower the rates. That is what they are supposed to do.
Low rates cause the economy to overheat and inflation ensues. It is a balancing act. That's why they have frequent meetings and frequent rate adjustments.
2007-08-22 19:57:22 · answer #4 · answered by regerugged 7 · 3⤊ 2⤋
No, it hasn't, yet all your questions seem to be fishing for that answer. You still wouldn't be taken seriously even if you could spell big 4th grade words like 'struck' properly.
2007-08-22 20:00:51 · answer #5 · answered by T D 5 · 0⤊ 1⤋
Your analogy is quite good. The fed, in its recent monetary moves has only temporarily put off the inevitable Real estate collapse and resulting economic downturn or recession.
Chinagirl say Glen is racist pig! You go to the devil!
2007-08-22 19:56:21 · answer #6 · answered by ? 6 · 0⤊ 3⤋
Look for the real fall-out to happen in October of this year. That's when the biggest number of resets will hit the market . . . It will be interesting.
2007-08-22 19:57:25 · answer #7 · answered by CHARITY G 7 · 0⤊ 2⤋
Along with maxed out credit cards that belong the China.
2007-08-22 19:55:43 · answer #8 · answered by Glen B 6 · 1⤊ 4⤋
/me pulls the plug on "status quo"
2007-08-22 19:59:59 · answer #9 · answered by Anonymous · 0⤊ 0⤋
yes
2007-08-22 19:55:30 · answer #10 · answered by . 5 · 0⤊ 2⤋