"John Galt" <whoisjohngalt@[EMAIL PROTECTED]
> wrote in message
news:IiHBj.68839$Gv.41834@[EMAIL PROTECTED]
>
> "Econotron" <njmfis-1@[EMAIL PROTECTED]
> wrote in message
> news:COGBj.7587$y83.7323@[EMAIL PROTECTED]
>> "John Galt" <whoisjohngalt@[EMAIL PROTECTED]
> wrote in message
>> news:16DBj.70348$6i4.24471@[EMAIL PROTECTED]
>>> John Galt:
>>> "Christopher Helms" <Chrishelms132@[EMAIL PROTECTED]
> wrote in message
>>>
news:1a1d7aef-1c8c-49d4-bee5-e5b506ff87c9@[EMAIL PROTECTED]
>>> On Mar 11, 3:46 pm, stuff_st...@[EMAIL PROTECTED]
wrote:
>>>> On Tue, 11 Mar 2008 13:30:17 -0700 (PDT), perrie
>>>>
>>>> <perryneh...@[EMAIL PROTECTED]
> wrote:
>>>> >We'll see if it continues tomorrow, won't we?
>>>>
>>>> http://biz.yahoo.com/ap/080311/wall_street.html
>>>>
>>>> Dow Jumps More Than 400 Points After Fed, Other Central Banks Move to
>>>> Ease Credit Crisis
>>>>
>>>> NEW YORK (AP) -- Wall Street finally found a reason for a huge
>>>> rally>Tuesday, after the Federal Reserve said it plans to pump $200
>>>> billion
>>>>
>>>> into the financial markets to help ease the strain from the credit
>>>> crisis. The Dow Jones industrial average shot up more than 416
points,
>>>> its biggest one-day point gain since July 24, 2002.
>>>>
>>>> The Fed's program is part of a worldwide effort to help struggling
>>>> banks and mortgage providers. The Fed -- acting in concert with the
>>>> European Central Bank, the Bank of Canada and the Swiss National Bank
>>>> -- agreed to loan investment banks money in exchange for debt,
>>>> including slumping mortgage-backed securities.
>>>>
>>>> The move is meant to essentially create a market for assets that
>>>> investors have been too scared to buy. That freeze-up in demand had
>>>> sent asset values plunging and caused huge losses for some of the
>>>> world's biggest banks.
>>>> .. .
>>>>
>>>> "It's not just a rate cut. I think it's a very creative way to do
>>>> financing," Conroy said. "It shows the Fed is willing to do things
>>>> that are a little out-of-the-box to shore up credit issues. I really
>>>> think they went to the heart of the issue."
>>>>
>>>> **** - a $200 billion bailout? Who's going to get the tab for this?
>>>>
>>>> And why is the fed saving the markets? It's charter is to manage
>>>> employment and inflation.
>>>
>>>
>>> The Fed isn't saving the markets. It is saving the banks, or trying to
>>> by continuing to flood the banking system with extremely cheap,
>>> inflationary dollars. The idea is to get the banks to start loaning
>>> money again. The banks who the Bush administration has been taking a
>>> 1920s, Calvin Coolidge style approach to. Like in the 1920s, the Bush
>>> administration allowed the banks to run free, free, free. They
>>> encouraged the Fed to pursue a loose money/ cheap credit policy just
>>> like in the 1920s. Hell, they even wanted the banks to be allowed to
>>> start playing the stock market again. Then, just like in the 1920s,
>>> the banks went overboard, over extended themselves and got into
>>> trouble. In the 1920s it was loaning easy money to stupid people so
>>> they could buy stocks they couldn't afford on huge margins. You were
>>> fine as long as your stock kept going up, which it failed to do around
>>> October of 1929. The loans went bad and the banks got stuck when the
>>> market corrected and suckers-I mean investors- suddenly couldn't make
>>> margin calls. This time it was loaning money to stupid people to buy
>>> houses that they couldn't afford. The loans were fine as long as the
>>> housing market kept going up, which it failed to do. People suddenly
>>> owed more on their houses then the houses were worth. Then, just like
>>> in the 1920s, the banks went almost overnight from a loose, easy
>>> credit stance to an almost no credit stance. They got stuck with all
>>> sorts of bad debt and the proud, mature, independent, lassais faire
>>> banks went crying to the government to bail them out as though the
>>> taxpayers had some fiduciary responsibility for the well being of the
>>> banking industry. **** the banking industry. They got themselves into
>>> this mess, they can get themselves out. That's the position an actual
>>> conservative would take. "Oh, the government must help or some of the
>>> nations biggest banks will fail." Good. Let them fail. It will be a
>>> lesson to the others the next time they start getting all tingly in
>>> the crotch about giving credit to morons just because some brain dead
>>> administration thinks it's the right, conservative thing to do.
>>>
>>> ***
>>> In 1929, the Fed attempted a TIGHT money policy after the October
>>> correction, an action which is generally considered to (along with
some
>>> other poorly thought out goverment policies) have turned a necessary
>>> correction into a full blown Depression.
>>>
>>> What the Fed is doing now and what they did then could not be more
>>> different.
>>>
>>>
>> That is according to the self-serving monetarist fairy tail.
>
> Are you saying that the Fed did *not* tighten money supply in 1929?
>
I am saying that they did, and it was the right thing to do.
e.
|
