The Fed poised to help boost economy

MSNBC Link: Feds poised to boost economy

Federal Reserve Chairman Ben Bernanke said Friday that the U.S. central bank is ready to step in to provide more help to an economy suffering from high employment and low inflation, but he was short on details, saying policymakers are still weighing how aggressive they should be.

“Given the committee’s objectives, there would appear — all else being equal — to be a case for further action,” Bernanke said in a speech delivered to a conference sponsored by the Boston Federal Reserve Bank.

Bernanke said a prolonged period of high unemployment could pose a risk to the recovery's sustainability and said the low level of inflation means the risk of a dangerous downward slide in prices was greater than desirable.

I don't know about you guys, but I'm getting the feeling of a bad omen here. With all these predictions revolving around the US economy to collapse in 2010 and my own suspicions of the market repeating itself from 1929 in such a way... could this be this death blow?

I'll just chaulk it up as a mindless hunch when November comes and goes....

Just make sure to wait until Nov. 9.
If nothing happens that day or week, phew, big sigh of relief.


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reply to post by Kojack


I heard on NPR the other day that the Fed was thinking about buying massive amounts of US Treasury bond at premium prices as a way to boost the cash in the system. Seems that the only thing that would do is devalue the currency buy flooding the economy with more money. Then again, there was a prediction in the past couple of weeks that a 10% drop in dollar value was imminent.

reply to post by rogerstigers


Correct,

quote from c-span

He provided some information in his speech by stating that the Fed will take action by buying more government bonds, but did not give an indication as to the size or timing of the purchases.

reply to post by Oscillator


Well, by giving that information, he would be manipulating the market negatively, wouldn't he? People would change their buy/sell plans and the market would freeze up. I think the whole thing is hog wash, but I can see why they wouldn't tell anyone any details as yet.

I do find it interesting that, for some reason, people still think the solution to fixing the economy is by running the stocks and bond correctly. I think that control panel has disconnected itself from the circuitry of the real economy.

reply to post by rogerstigers


Yes, I find the only decent sources of economic information are Peter Schiff and Celente. They were right in the past, Bernanke simply was not.

Here is another very interesting lecture I watched a few days ago. Great analysis imho.

Ah this is new as he want the FED to buy Treasury Bonds.
Not bloody likely.
And how will that create jobs.
More accountants.
Let everyone get good day jobs so we can have more pop festival
to set up in our pleasure time and have some fun again.