Comments on: The Fed Is Losing It http://thefinancebuff.com/2008/03/fed-is-losing-it.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Anonymous http://thefinancebuff.com/2008/03/fed-is-losing-it.html/comment-page-1#comment-498 Anonymous Tue, 11 Mar 2008 15:46:00 +0000 http://blog.thefinancebuff.com/?p=232#comment-498 I'm no expert in finance, but the Fed appears to be acting based on the tyranny of the now rather than the long term. Governments from Federal to local are seeing large reductions in income due in large part to the stock market and the growth slow down. Our governments continue to operate at a deficit even in good times and then have the audacity to project good times to increase on top of that to pay for the debt. <br/><br/>Then we have a slow down and/or correction and everyone freaks out and everything goes to hell. Inflation becomes less important to the government because it minimizes the old debt at little cost to the government. That's why the market is more important right now and that trend will only continue as the boomers retire and draw more and more of it as income to be taxed. Its a house of cards. That's my take.<br/><br/>Maybe one day our governments will learn to operate responsibly. Based on the choice of candidates for president, it won't be happening soon.<br/><br/>Ted I'm no expert in finance, but the Fed appears to be acting based on the tyranny of the now rather than the long term. Governments from Federal to local are seeing large reductions in income due in large part to the stock market and the growth slow down. Our governments continue to operate at a deficit even in good times and then have the audacity to project good times to increase on top of that to pay for the debt.

Then we have a slow down and/or correction and everyone freaks out and everything goes to hell. Inflation becomes less important to the government because it minimizes the old debt at little cost to the government. That's why the market is more important right now and that trend will only continue as the boomers retire and draw more and more of it as income to be taxed. Its a house of cards. That's my take.

Maybe one day our governments will learn to operate responsibly. Based on the choice of candidates for president, it won't be happening soon.

Ted

]]> By: david http://thefinancebuff.com/2008/03/fed-is-losing-it.html/comment-page-1#comment-496 david Tue, 11 Mar 2008 09:16:00 +0000 http://blog.thefinancebuff.com/?p=232#comment-496 I have the TIPS Yield Curve rss feed and this is some recent data:<br/><br/>10-MAR-08: 5-year=0.01%, 10-year=0.90%, 20-year=1.60%<br/><br/>07-MAR-08: 5-year=0.08%, 10-year=1.01%, 20-year=1.68%<br/><br/>I have no idea what this stuff means, I just remember reading that if the yield curve gets inverted, we're in for some hurt. I have the TIPS Yield Curve rss feed and this is some recent data:

10-MAR-08: 5-year=0.01%, 10-year=0.90%, 20-year=1.60%

07-MAR-08: 5-year=0.08%, 10-year=1.01%, 20-year=1.68%

I have no idea what this stuff means, I just remember reading that if the yield curve gets inverted, we're in for some hurt.

]]>