Fed just made big anouncement

They just anounced that they recognize the economy is going to need help for quite a while so they are keeping short term interest rates the same as it is right now at .75 until mid 2013. So our interest rates are going to stay low for the next 2 years at least. And this will really help adjustable rate loans too they said. But it drove the market down into the red as it was a very negative decision.

http://money.cnn.com/2011/08/09/news/ec ... e_meeting/

They should rename the Feds mission statement from taming inflation and unemployment, to keeping Wall St. happy and stock prices up. LOL

Joe wrote: They should rename the Feds mission statement from taming inflation and unemployment, to keeping Wall St. happy and stock prices up. LOL

Yep!

So the market ended up 429? That is great! Up 200 then down 130 then up 429! That takes the sting off of yesterday a bit. Guess my call on buying today was right. Glad no one said to SELL today........ or did they?

I say "SELL"! Fast!

It is time to look at alternative places to move your money over. Let's not forget the pattern of Fall 2008.

hmmmmmm.....do I want to take investment advice from a message board? Bet my future income and quality of life on advice from anonymous posters? Nope, don't think so.

Bizarre statement from the Fed. Why would they hamstring themselves like that, especially if inflation continues at a high rate?

Maybe it isn't worth paper it is printed on?

Alan Greenspan, 2 trick pony, lower interest rates and when they are at zero, printing money.

Its bizarre and unsual to fix interest rate policy for 2 years. Usually they re-evaluate every 3-6 months.

That is a VERY odd step to take, in my opinion.

Stupid Fed Tricks....

It could decide to lift its inflation target — publicly tolerating a risk of losing control of prices in the name of reviving growth.

Even as the central bank is struggling to keep rates low and encourage more borrowing, the economy is being weighed down by forces outside of its control. Spending cuts at all levels of government are producing a major drag on growth.

"No wonder we haven't had this recovery: We're held back by all of this austerity," said Robert Brusca, chief economist at FAO Economics. "Why anybody talks about how austerity is the right thing to have after a recession, I don't know."

Pressure to cut government spending intensified this week following Standard and Poor's decision to downgrade the Treasury's credit rating. That downgrade threatens to make credit tighter if it reduces the value of bonds held by U.S. banks.

"There's $2 trillion worth of government-guaranteed paper inside the banking industry," said Rochdale Securities banking analyst Richard Bove. "That paper in essence loses its value if you downgrade Fannie Mae and Freddie Mac or the United States government debt. Therefore, you're reducing the capital availability to the banks because you're reducing the size of their assets."

http://www.msnbc.msn.com/id/44077951/ns ... e_economy/

Congratulation Teabaggers... The ones cheering and clapping today because the US got downgraded.. You have so much to be proud of...