GOP Dirty Little Secret Returns . . . RECESSION--!!! DEEP RECESSION--!!!

REPUBLICANS SUCCEED AGAIN IN CREATING RECESSION . . .
THIS TIME . . . 'DEEP RECESSION' . . . ????

US moves to avert economic meltdown By TERENCE HUNT, AP White House Correspondent

WASHINGTON - Jolted by global recession fears, the Federal Reserve slashed interest rates Tuesday, and President Bush and leaders of Congress joined in a rare show of cooperation in promising urgent action to pump up the economy with upwards of $150 billion in tax cuts and government spending.

Market meltdowns overnight around the globe and growing anxiety at home stirred lawmakers and the administration toward swift action, possibly within a few weeks. Wall Street plummeted as the day began, following Asian stocks, then warily eased its sell-off after the Fed ordered the biggest cut on record in a key interest rate. The Dow Jones industrials, down 465 points at one point, closed the day off 128.

The Fed, announcing its action after an emergency video conference Monday night, indicated further rate reductions were likely, aimed at encouraging people and companies to start spending again.

"The urgency that we feel at home is now even more urgent as we see the impact of our markets on others," House Speaker Nancy Pelosi said after both Democratic and Republican lawmakers met with Bush at the White House.

burnankee is a frickin asshole..and so is the guy who appointed him!

Like in 2002. But that won't prevent the recession or the ultimate fall in the stock market. This time the recession will be much more serious than in 2001-2003, because there is no home equity to tap into anymore. It's been spent already, and home prices have or will have fallen making home equity loans difficult. By the end of 2008 the FED rate will be 1%, my prediction. :)

I finally have good credit back & I want to refinance to a lower fixed rate. But, it does seem they will do it again. So,
I am thinking of waiting for another cut.

My current rate isn't bad (and it is fixed), but if I could shave off a couple of points...Would be worth it given this is a long term property investment.

Of course 1% federal funds rate doesn't mean that low in mortgage rate, but they would be lower. As a gage, probably looking at the mortgage rates in 2002 would be a close approximation. Credit qualifications will be more stringent though.

One problem I see is if house values have dropped too much to get a refinance. I'm not sure how that would work if you have a loan out already that is worth more than the house is worth.

of what they were at the beginning of that cycle. The PE on the S&P 500 was 45. Now it is less than 15.

I don't think the PE is currently 15. The economy of the last five years has been an illusion created by deficit spending and war economy. We've come to the end of that. That's what we're seeing now. We're in a downward spiral.

The FED will try to fight the liquidity trap, but they can't go below 1% or so. Also, our creditors are getting annoyed with us. They may not hold our debt if they don't get a return. Helicopter Ben has been left holding the bag for Alan Greenspan. Volcker was a responsible FED chairman.



http://library.hsh.com/?row_id=88

to see how they drop by enough to justify a 2000-2002 type bear market. Also, our economy will only contract, top end, 1-2%. In 1981-1982 it didn't do much more than that and that was a humdinger of a recession. Our companies will earn something here and odds are, writeoffs excluded, it will be the vast majority of what they currently earn.

I certainly am pessimistic about the economy, but have been for quite a while.

What I think is happening now that is much more profound than 2003 is that the equity bubble in stocks that shifted to housing and consumer debt is now popping. There are no more bubbles to inflate. And the stock market has a new bubble, which will be popped as consumer spending dries up.

We really are up against the wall this time. Last time it was simply lowering rates, government and personal deficit spending, and starting a war to boost the economy. The day the bombs dropped on Baghdad was the end of the bear market. You probably remember that day in March 2003. Now all those chickens are coming home to roost. Our debt is staggering and it will be going up more to stave off the recession.

A year or two ago, everything was rosy for economists, while skeptics knew what was coming. So today if Merrill Lynch says that housing will drop by 25%, I'm thinking 50%, after applying the inverse bubblehead function. :)

... as in "I'll drop cash from helicopters to stave off a recession" for nothing.

You could have impeached the lying bastard President who, just two weeks ago, stood before the cameras and wagged his finger and said "I did not have sex with that woman." Oops. Wrong LIE. This lying bastard changed the reporting method for unemployment figures and told the nation that the economy was GREAT for fucking YEARS, when he knew full well it was not. But why should he have worried? Lying didn't matter to the Democratic leadership. There were more important things to contend with. Apparently, averting an economic meltdown was not one of them.

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Wages, wages, wages wages wages ....

the economy by cutting taxes for the rich and upper middle class.

"The End of America: Letter of Warning to a Young Patriot."
http://www.amazon.com/End-America-Letter-Warning-Patrio...

"You Have No Rights: Stories of America in an Age of Repression"
http://www.amazon.com/review/product/1595581642?filterB...

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2720806

nothing in the face of increasing fuel costs, food prices, health care costs and skyrocketing personal debt.

One guy on the panel said that 49 out of 50 attorney generals wanted to prevent the banks from predatory lending practices but, the admin made them 'stand down' ?? Who knew this??

This admin can go to ILO*&*%= and, Let's not forget who brought this country to its knees.

during Clinton's administration, you'd always be hearing about a miniscule increase in inflation ---
what could it be now?

It's at a 17 year high, I believe !!!

And the Pentagon and the oil companies have made off with the bucks while adding these costs to everything else we buy!!!

:rofl:

You've sucked up all the wealth of the nation for the last seven years, to the tune of about $5 trillion. It's takesie-backsie time, so you can either give it back willingly or we come take it. Which will it be???

and immediately I thought relief from what. They lent the money now they want a hand out. The people need relief.

Oh, yeah --- well, when capitalism fails, let's continue to replace it with a government run service.

Capitalism has failed over and over again ---
we now have "savage" capitalism -- "predatory" capitalism -- "disaster" capitalism ---
and right now we see capitalism stealing the wealth of citizens and nations.

Let's get back to heavily regulated capitalism ---
turn once again towards the ideal of economic democracy ---
democratic socialism.

And did anyone ask the candidates the other night how they feel about taking over a bankrupted Treasury and who they might hold responsible for it?

they will be remembered