Fed sends interest rates soaring

[Atman]

Well, okay, only 1/4 point. But if that was a fake Bush job number, it would be reported as "skyrocketing" or "spriraling" or some bullshit. Call a spade a spade, but let's use the same scale for ALL the Bushit, shall we?

[papau]

1. Wednesday is the decision day - and I hope it is a 0.5% increase

:-)

[Atman]

2. It's already done...1/4 point, today

That is what was just reported on CNN anyway...unless I misunderstood.

[papau]

3. I suspect CNN report the consensus view that tomorrow it will rise 1/4%

However the actual "decision" will not be told to us until Wed.

Or at least that is what the FED agenda for this week indicates!

:toast:

:-)

[Atman]

4. I think you're right

We'll see tomorrow, I guess!

[StopThief]

5. Do you hope it is 0.5% because. . .

you think the danger of inflation is greater than they are saying, or just to see the surprise roil the markets?

[papau]

7. Inflation since the 1/1/04 is running near 6%, GDP is over 4% if you

believe the numbers - and Job creation is soaring, with e PPI inflation also going through the roof - and that is all after reductions to the inflation rate for "quality improvements" one finds hard to find.

Based on the numbers 0.5% is the right number.

Based on politics we will get 0.25%

Based on the economic numbers under Bush being a liw for the election, 0.25% is most likely the right number.

I think Greenspan will confirm that Fridays job numbers for June - and earlier - need to be taken with a grain of salt. Indeed some very good econ models do not see econ growth in the US for the next 6 months much above 3%.

But God forbid our media express an opinion not sent to it by the Whitehouse - unless it is by Krugman in an "op-ed".

I do not expect a roil in the markets no matter what the FED does. Indeed 0.5% might make the markets more stable. The earnings for the next 6 months are locked in and will sustain current prices - and Bush will have a Sept/Oct rally via his friends (his friends can't/won't do a dump and pump for more than a few weeks - but that is all that is needed). I did not go to cash 12/15/00 - this time I will if Bush and friends in the media steal another for the GOP.

[MadHound]

6. Well, it will continue to go up

I've read and heard that Greenspan and the Feds are prepared to keep knocking up the interest rates by 1/4% each time they meet for awhile. So much for cheap cash, this could be the final nail to burst the housing bubble. It is also going to make it harder for those with outstanding credit card debt, variable rate mortages, and who are looking for a new car.

Quite frankly, I think this is going to lead us back into a recession/depression, especially if Bushco wins in the fall. The market is being propped up, the basic numbers are being subjected to
"Enron style" math, and beneath Bush's thin veneer of an economy on the rebound lies a yawning abyss.

But hey, I've become a pessimistic, cynical SOB anyway, though sad to say this administration keeps surpassing my worst fears.