The Fed response was much too little, much too late. nGDP had already fallen precipitously in early '08 and continued its slide until meeting the cliff in Sept. '08.
The Fed's job is to maintain a 5% nGDP, with inflation filling the hole when real GDP falls. Obviously that's not what happened, which is why we're in our present situation. At this point we'd need an effective interest rate of less than -6% just to get us back to rGDP trend.
@Zeldovich It's been 2.5 years and things continue to get worse. House prices are still falling and foreclosures escalating.
The rate cut helped the big banks borrow for nothing and lend that same money to the treasury for a massive profit. This boosted the earnings and the bankers got record bonuses.
But you must know this, it's been in the news for months.
And Cramer explicitly tells people to buy stock even though he knows theye are over priced.
@Zeldovich He was right that all those people would keep their houses? Nope. They've lost them and more will follow.
The rate cut just prolongs the agony and allowed the WallStreeters to get their bonuses. But he just is a schill for WallStreet so I expect no more from him.
crack kills
zillaje 7 months ago
This guy is something.
catobear1704 9 months ago
@egosumabbas sweet prediction, turned out completely correct
RICHUNCLEPENNYBAGS77 1 year ago
burnanke is a fucking idiot .
AndrewMacedonia 1 year ago
@Paetaor
The Fed response was much too little, much too late. nGDP had already fallen precipitously in early '08 and continued its slide until meeting the cliff in Sept. '08.
The Fed's job is to maintain a 5% nGDP, with inflation filling the hole when real GDP falls. Obviously that's not what happened, which is why we're in our present situation. At this point we'd need an effective interest rate of less than -6% just to get us back to rGDP trend.
This recession was needless.
Zeldovich 1 year ago
@Zeldovich It's been 2.5 years and things continue to get worse. House prices are still falling and foreclosures escalating.
The rate cut helped the big banks borrow for nothing and lend that same money to the treasury for a massive profit. This boosted the earnings and the bankers got record bonuses.
But you must know this, it's been in the news for months.
And Cramer explicitly tells people to buy stock even though he knows theye are over priced.
Paetaor 1 year ago
@Paetaor
Why? Because you think it does, stupid? Where's your evidence?
Zeldovich 1 year ago
@Zeldovich He was right that all those people would keep their houses? Nope. They've lost them and more will follow.
The rate cut just prolongs the agony and allowed the WallStreeters to get their bonuses. But he just is a schill for WallStreet so I expect no more from him.
Paetaor 1 year ago
@Paetaor
Cramer was exactly right here.
Zeldovich 1 year ago