NEW YORK — The stock market surged Wednesday for a second consecutive session after a top-ranking Federal Reserve official indicated that policymakers could be amenable to lowering short-term interest rates further.
In a speech in New York, Fed Vice Chairman Donald Kohn said the central bank would remain "flexible" and would "act as needed" to prevent the housing crisis and credit crunch from damaging the economy.
After a string of recent comments from Fed officials that they would stand pat, investors embraced Kohn's remarks as a sign that policymakers were reassessing recent signs of economic softness and could cut rates at their Dec. 11 meeting. That would be the third consecutive Fed reduction, after cuts Sept. 18 and Oct. 31.
SourceThis is just more pandering to wall street. It is disgusting that the Fed will do anything to save the stock market at the expense of the dollar. How far will they allow the dollar to fall and inflation to rage before something is done?
Perhaps the conspiracy theorist are correct. Won't Americans be much more willing to accept the NAU, and the "Amero" (the proposed new currency between USA, Canada, & Mexico) if the dollar is in rubble.
The Amero and the NAU will be looked at like a savior.
Step 1) Destroy the US Dollar so that the Canadian looney has more value. (Complete)
Step 2) Continue to erode the currency further creating rampant inflation and hardship
Step 3) Propose the NAU and Amero as a solution to the economic disaster
Step 4) Americans gladly hand over sovereignty in order to afford gasoline again
Step 5) Success
Wake up America!
2 comments:
"This is just more pandering to wall street."
Perhaps. Wall Street will certainly benefit from this. I think Bernanke is trying to inject liquidity to keep member banks solvent to prevent a total collapse of our financial system. Once he puts that fire out (if he can,) he can only hope that inflation hasn't gotten so bad that he needs to raise interest rates to levels that will ruin the economy.
He doesn't have any good options.
Don't you think it would be a good thing to raise interest rates and let the inevitable recession take place.
I think it would be healthy for the economy for people to start saving money, stop debt spending and reduce inflation.
I agree he doesn't have any good options, however, I think that we would be much better off with a strong dollar and a recession then we would letting inflation continue to rage.
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