fed meeting this week - rates going up or down?

[Pablo]

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No change at the Sept. meeting. You can take it to the bank.

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Hindsight is 20/20 as they say but I'm glad I DIDN'T take this to the bank!!

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[Shannow]

Strange, because due to exactly the same drivers, Oz' rates will climb 0.25 before Christmas.

 

[Footpounds]

That's due to the Coriolis effect.

 

[Al]

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People in the U.S. have a problem with this? Interest rate targets should be about 200 basis points above the inflation rate IMO.

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Yes they should. This makes our currency less attractive to foreign investors. They sell dollars (bc our interest rates are low). This lowers the value of our currency even more. As far as helping our exports..what little we export yes it will help. But we import way, way more than we export which makes foreign goods more expensive which hurts our economy..This also leads to recession albeit down the road a bit. Hopefully for the current regime after the ELECTION.

Dollar has dropped 20% in the last year. Fed can't battle inflation, maintain economy, support the dollar at the same time.

Me..I'm happy as ---- for now. Stocks are up and my Euros/Gold is up. And personally I'm way overloaded on foreign funds bc even though they go down the weaker dollar offsets some of it. But in the grand scheme of things..I wish we weren't going down this road...Its unsustainable.

 

[salesrep]

But in the grand scheme of things..I wish we weren't going down this road...Its unsustainable.

Agreed.

Wholesale changes are in order and it is doubtful any one politician, governing body, or party will make them until our hands are forced.

 

[CivicFan]

There was an editorial on radio today about double standards - when an ordinary person gets screwed, we blame him/her for bad choices and decisions. When the rich folk are getting screwed, the Fed lowers the rates to bail them out. Go figure.

 

[salesrep]

Was it the rich or poor that were getting screwed?

 

[CivicFan]

Either. The regular folk got screwed when they decided to buy a bigger house than they could afford. We tell them tough luck.

The rich folk decided to trade on sub-prime mortgage derivatives with borrowed money. We went ahead and lowered the interest rates so that they wouldn't suffer much.