This is NOT going to be a popular post…
I’m starting to think Bernanke might be the PERFECT man for the current condition of this economy.
Uncle Benny spent his entire academic career studying and dissecting the causes and effects of the GREAT DEPRESSION. I’ve read a few of his books on the subject and they are very interesting. The steps he took last week with Bear Stearns were extraordinary. Opening the discount window to banks so they can EXCHANGE their asset backed securities for treasuries may have saved this economy. We’re not out of the woods yet, not by a long shot, but I have to say, just when you think this guy is out of ammo he pops back up with another fully loaded weapon.
I think rates will rise…that’s not a tremendously bold prediction. Hell, rates have been in the toilet for over a DECADE, of coarse they’ll rise. Especially after everyone on the PLANET is up to their eyeballs in debt and the banks are taking a BEATING.
The interesting aspect of this cycle is it’s GLOBAL effects. Think about this for a minute…Mortgages made in the U.S. on AMERICAN HOMES are KILLING banks around the world. This is a new world we now live in. Banks now realize that IF THEY DON’T all work through this… THEY’RE ALL SCREWED!!!
We’re in for some serious pain here. But I have to admit, Bernanke is doing a decent job. He’s in a NO WIN position. He does NOTHING, he’s an idiot or worse, CAUSES an economic COLLAPSE. He does something, it’s the wrong thing.
They did NOTHING in 1929…We all know how THAT worked out. At least Uncle Benny isn’t sitting on his hands. If he was, it would have been over last September.
Markets never change because markets are PEOPLE. Fear, Greed, and Hope, it’s all in there. It’s a giant 3 dimensional puzzle were pieces are taken, and given everyday.
Is oil gonna stay at $100/ barrel…not with a world wide econmic slow down.
Is the U.S. dollar FINISHED…Not in a million years… I was reading a VERY interesting article on why the Dollar has been the CURRENCY of choice in uncertain economic times…The REASON???
OUR LAWS…this country is a country of LAWS. ANYONE, can buy property or assets here and KNOW they too will be protected ny those laws. I’m not going to debate the fact that THOUSANDS of people lost their savings and investments with BEAR STEARNS. The point is when the world is in turmoil, the U.S. is a safe haven.
Think about what was lost MONDAY when Bearn stearns went to $3/share??? BILLIONS!!!
Anyone see rioting in New York City??
Anyone see Bear Stearns Head Quarters being burned down??
THIS HAS ALL HAPPENED in MEXICO and BRAZIL in the recent past. When THOSE countries faced similar economic uncertainity the people went CRAZY!!! They Burned State buildings, Banks, politicians were attacked!! THAT doesn’t happen here. THAT is a BIG reason why this country has an EDGE!!
Anyone see the news coverage of the RIOTS in China over recent INFLATION!!
Where are our RIOTS???
We are the luckiest people on this planet to simply have been BORN were we are.
Oh…just so you guy’s don’t think I was body snatched last night…
Real Estate is STILL going to get KILLED for the next 2 to 3 years!!! :biggrin