歌颂伟大英明正确的联储

In my opinion, Fed did the right thing at the right time.

It is Fed’s responsibility to use the invisible hand (interest rate) to control the overall economy and market, in order to maintain the continuous stability and prosperity of the society. Fed had increased fed benchmark rate 17 times since June of 2004 to cool off the greed at housing market. There is nothing to blame for fed to reduce (discounted) rate to cool off the panic at credit and equity market. I expect Fed will reduce benchmark rate by 0.25% each month and total 4 times this year (Sep/Oct/Nov/Dec). It is ignorance to compare this to Hong Kong government’s action to buy securities from market directly with cash in 1998.

Some people blame Fed for “bail out the wall street”. I will say that Fed bailed out everyone who lives in US, or even the whole global economy. All major Wall Street firms are public companies owned by share holders, and most of money they are playing with is from investors. If Fed does nothing, for big boys at the street, the consequence is to buy a loft at Manhattan instead of a house at Hampton. The real consequence is a stock market crash (20%+), a credit drought for thousands of business that depends on it, a high unemployment rate, and finally a recession. How many people became rich from market crash and recession? At least I personally don’t know anyone.

Believe me, Fed guys are real smart guys. They can access much more information, and know much more than each one of us, and they know what they are doing. A person who knows history or understands economics will never blame Fed for this.

所有跟帖： 

• Fed may bailout people's psychology if any. I do not -pediatrician2- ♂ (117 bytes) () 08/18/2007 postreply 19:47:50

• Using your money and my money for bailing out WS -山高月小- ♂ (227 bytes) () 08/18/2007 postreply 20:13:09

• Fed decides to charge bank less for borrowing, nothing to do wit -Vega- ♂ (0 bytes) () 08/18/2007 postreply 20:21:24

• h your money or mine -Vega- ♂ (0 bytes) () 08/18/2007 postreply 20:22:15

• Where is FED's money from? -山高月小- ♂ (230 bytes) () 08/18/2007 postreply 20:39:47