2011 Global Stock Market Collapse Watch

reply to post by InFriNiTee


If they raise the transaction fees for debit card transactions, people will just go to ATMs and the counter to withdraw cash. I'm sure that the banks will in turn raise ATM & withdrawal fees, which would beclear cut evidence that they are trying to keep people's money in their accounts to stay as liquid as possible and at the same time make an extra buck or three!

At this point what do you think most consumers will do? Make all of their transactions using credit cards, and then pay the balance off every month to avoid getting nickel and dimed every month, ditch the banks and head over to credit unions, or just pull their cash out all together.

Greed has no limit I see.

Originally posted by Crakeur
the fed really doesn't have much room to do anything here. they can't pump money into the system if they don't have it and, since Obama is still hellbent on spending money he doesn't have (somalia anyone)

If they can create or save jobs, they can create or save money.

Why not?

The fed should consider printing $200 TRILLION, pay all mediate debts, then divide the rest up among all taxpayers equally... Good times for ALL, for a while anyway.

Originally posted by InFriNiTee
Today, the FOMC Meeting will begin at 3:30 PM EDT.

Here is a link to the live feed:

www.ustream.tv...

and a link to the USTREAM main page for the fed:

www.ustream.tv...

edit on 8/9/2011 by InFriNiTee because: (no reason given)

They have started streaming, but I do not hear any audio as of yet. I still think it's on for 2:15 PM EDT if they started streaming this early.

reply to post by Fractured.Facade


sure, they can do that, eliminate the debt and create a big cash bonus to taxpayers but, in the end, all that extra money will do is make everything far more expensive. Milk will cost ten bucks instead of 3 and so on. we won't be any better off until the gov't gets that excess cash off the street

reply to post by Fractured.Facade


Sounds nice in theory, but sounds like inflation would go through the roof and money would be useless since that would devalue everything so much. Corporations and businesses will have to recoup their profits and drive up the price. There would too much supply of money and not much demand for people to earn more money which will lead to hyper inflation.

The Fed sharply downgraded its view of the U.S. economy, signaling it plans to keep short-term rates close to zero for at least another two years.

online.wsj.com...

That's all they had to say? Oh boy... Get ready for an interesting ride ladies and gentlemen.

Dow in the red again at the moment...

www.google.com...

Here is the official statement:

Information received since the Federal Open Market Committee met in June indicates that economic growth so far this year has been considerably slower than the Committee had expected. Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up. Household spending has flattened out, investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Temporary factors, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan, appear to account for only some of the recent weakness in economic activity. Inflation picked up earlier in the year, mainly reflecting higher prices for some commodities and imported goods, as well as the supply chain disruptions. More recently, inflation has moderated as prices of energy and some commodities have declined from their earlier peaks. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the previous meeting and anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Moreover, downside risks to the economic outlook have increased. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee’s dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.

To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.

The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability. It will continue to assess the economic outlook in light of incoming information and is prepared to employ these tools as appropriate.

blogs.wsj.com...

the live feed started
fed reserve feed

reply to post by hapablab


I'm there but I don't have any audio for some reason. Do you have audio?

Originally posted by OuttaTime
reply to post by Druid42

 

I started my thread here (www.abovetopsecret.com... ) so this thread could stay more focused on the financial issues

Got it....

reply to post by majesticgent


that's not starting until 3:30.

Looks like Bernankes speech pulled the plugs Wall St is pretty flat and gold was up $49 to $1763 a minute ago. Look out Asia, Ben just threw you to the wolves.

Originally posted by OuttaTime
Look out Asia, Ben just threw you to the wolves.

How do you think this news will reverberate in a few hours when Asia's markets open? Do not really know why I am asking this, but I figured I would anyway...

Originally posted by Crakeur
the fed really doesn't have much room to do anything here. they can't pump money into the system if they don't have it and, since Obama is still hellbent on spending money he doesn't have (somalia anyone), the press conference will probably be more talk about how the downgrade is unwarranted and how the economy is growing, just not as fast as we'd like.

once word gets out that the fed isn't doing anything to prop up the markets, the selling will start again. that's how I see it happening.

I'd be totally shocked if the fed says they're going to start buying up bonds again. It doesn't seem possible, given the lack of funds. What amazes me is that the public will see this as a good thing when, in reality, the gov't will borrow the funds or get the money via taxes and then the gov't will make money on the bond purchase program and, like every other deal the fed has made, the taxpayer will be left shortchanged.

They have the money allright, that´s not the problem. They can print money but it has to be converted into debt. Otherwise they could just drop it out of helicopters which would quickly drive up prices of what it buys.

The problem is that they´ve already created mountains of non-interest bearing cash that is sitting at just about zero% in short bills. It´s a concept called liquidity preference. Gigantic sums earning very safe minimal returns in very safe short instruments. If short term rates rise this will be the signal to exit short money and seek better returns elsewhere. Presently a good deal of the US money supply is happily churning this 1-2 basis points (plus what the FED probably has to bribe banks to keep this scheme alive) but the more the FED adds to this pool the more difficult it becomes to maintain. It´s another of them bubbles. The money supply ratio to GDP is at an historical high. It has to be wound back. The FED has to SELL govt. bonds and contract the money supply.

What's being said in that feed that I cant seem to connect to? The whole board just went into free-fall mode.

And the free-fall begins!
Didn't take long for the FED to screw things up even more!

Originally posted by Manawydan
What's being said in that feed that I cant seem to connect to? The whole board just went into free-fall mode.

I'm not getting any sound either, but wow the markets definitely took a dive.

ETA just got sound.

reply to post by majesticgent


I'm just getting a gut feeling that the markets are just plain insolvent, and the investors are waking up. Asia will be he next recipient of the FOMC fallout. Call it the domino effect Bernanke basically said we are on a holding pattern for 2 years, and shareholders don't like those words

y'all don't read. the live feed starts at 3:30 and it's a discussion about new bank charges

the fed made their statement