Throwing money at Treasuries isn't the answer

Discussion in 'Politics' started by B_starinvestor, Mar 19, 2009.

  1. B_starinvestor

    B_starinvestor New Member

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    to drop mortgage rates. Writing a $300 billion check to buy Treasuries...

    Fed in Bond-Buying Binge to Spur Growth - WSJ.com

    In theory, driving up prices on T-bonds will drop t-bond rates, which in turn, pushes mortgage rates down.

    It won't work this time around because non-depository lenders simply don't have enough warehouse credit available to lend anyway. Betcha mortgage rates barely even move.


    Spend, baby, spend!

    :rolleyes:

    This is really getting frustrating.
     
  2. houtx48

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    usa needs to get back to business of business and the government needs to stay out of thing they obviously know nothing about. see stary you're not all bad.
     
  3. D_Ireonsyd_Colonrinse

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    star, it's really a shame that you never seem to give President Obama any credit in what's a terrible time for the country. He walks into office on January 20th, not quite two full months ago, he's done so many positive things on so many fronts, he's actively involved across the board (closing Guantanamo, banning torture, giving us a firm date for the end of combat operations in Iraq, ending federal funding restrictions on stem-cell research, actively revamping the healthcare system, enacted a pay freeze on all White House staffers making more the 100K, has given a detailed plan for overhauling the nation's public school system, etc etc etc). Every week he's involved in a new issue. Our reputation globally is being repaired: we're allies again, not bullies.

    When you were on your holier-than-thou Cincinnati Tea Party kick - saying you were not republican nor democrat, just an american concerned with the fiscal policies of the country - I smelled a rat. Let's take a walk down Memory Lane, shall we?, to remind us just how non-partisan you are:

    In spectacular twist of irony, liberals trash D.C.

    (this thread had little to do with environmental concerns, and more to do with trashing liberals)

    Self-serving and vile Democrats owe an apology


    Connection between democratic leadership and poverty


    Democrats attempting to abolish 401(k)'s


    U.S. buying stakes in banks may actually work

    (oh, I'm sorry! This was the period you were IN FAVOR of bailouts - because Bush was still in office.


    In this thread, you gave your typical economic mumbo-jumbo, except skewed for "W":
    star writes: "Since the gov't is buying preferred stocks, the common stock will not be diluted. This will provide the capital needed for banks to extend credit and [unfreeze] the lending and credit markets; without harming common stockholders."


    On this same thread, lucky8 made a pithy comment:
    "Wow I'm suprised there aren't any repubs in this thread screaming socialism...irony"
    )



    Liberal disappointment and backlash; digesting reality


    Insecure Obama taking shots at radio host




    Thanks for giving Obama a modicum of support, starman. Were he a moderate conservative doing the very same things (as your support of bailouts under Bush proves), you'd be singing a different tune.
     
    #3 D_Ireonsyd_Colonrinse, Mar 19, 2009
    Last edited: Mar 19, 2009
  4. B_Nick8

    B_Nick8 New Member

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    Nick to willtom: :beerchug2:
     
  5. B_starinvestor

    B_starinvestor New Member

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    WT, I never said I wasn't a republican. I said the theme of the Tea Party was not to trash any politicians or party; just to create a voice that says stop spending money.

    For the record; I'm a social liberal and fiscal conservative. However, I am a registered Republican mostly because I am against gov't expansion.


    As I was sold a bill of goods from the gov't in that those assets would be used to buy toxic assets and create credit.

    It did neither. One of the many reasons I can't stand gov't. It was an outright lie. Paulson can blow me.

    I always said you guys put way too many expectations on the guy.


    Doubt it.

    I called McCain a financial idiot several times for his idiotic foreclosure bailout proposal.

    Myself and several others here have pointed out several times that Obama's absolute lack of business experience would lead to disastrous fiscal decisions.

    And it has.
     
  6. lucky8

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    Im sure China doesn't mind...I'm all for increasing the money supply, it's desperately needed right now
     
  7. B_Nick4444

    B_Nick4444 New Member

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    check out the rising CRB Index -- traders are buying up commodities

    which is another way of saying that the expectation is that Obama's buying of the treasury obligations will fuel inflation
     
  8. B_Nick4444

    B_Nick4444 New Member

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    oops! meant the fed is buying up treasury obligations

    we all know the fed is independent of the executive branch :wink:
     
  9. lucky8

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    Ooops, Bernanke is the man you should be angry at...
     
  10. lucky8

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    and if you want to blame Obama for people buying commodities, you can also blame Obama for the 800 point jump in the DJ over the last week and a half...
     
  11. B_Nick4444

    B_Nick4444 New Member

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    oops!

    recession, rising unemployment, and inflation?!?!

    James Earl Carter II?
     
  12. lucky8

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    Have you forgetten this recession and financial sector crisis started in 2008? Inflation started in '08 buddy, as did the recession, as did rising unemployment
     
  13. D_Ireonsyd_Colonrinse

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    star,

    At the end of 2008 (a few months ago), you were supporting governmental bailouts of banks and A.I.G.

    Now, you're hobnobbing with Palin supporters and Obama-bashers and Jesus freaks (with homemade signs) at Tea Parties in downtown Cincinnati.

    Your journey continues...
     
  14. B_starinvestor

    B_starinvestor New Member

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    they've already cut Fed Funds to zilch..

    they could accomplish significant economic activity with money they've already spent...like making banks lend instead of keeping the TARP money sitting in a vault.

    the $8K tax credit for 1st time homebuyers has gotten people off the perch to buy homes...but they are still struggling to get financing.

    Its like they are blindly carpet-bombing the economy with all kinds of spending, but not staying around to ensure that any of the bombs reach their target.
     
  15. B_starinvestor

    B_starinvestor New Member

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    I explained this. See post #5 in this thread.

    The event was opened to the public. I didn't have any input in the guest list.

    'You've spent enough' That was the message. I support it. I don't care if Han Solo was there.
     
  16. lucky8

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    What do you think about the Fed's move to purchase mortgages star?
     
  17. B_starinvestor

    B_starinvestor New Member

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    I think its part of the carpet-bombing campaign. In theory, it is helpful in keeping rates low. But in a way, its like giving an electric snowblower to somebody in Cabo.

    Other parts of the puzzle need to be plugged in properly so that people can actually take advantage of the low rates and do something with them.
     
  18. D_Ireonsyd_Colonrinse

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    oh, look, starman. Hot off the press!:


    House passes bill taxing AIG, other bonuses


    Measure would place a 90 percent tax on some bailout related bonuses



    WASHINGTON - Acting swiftly, the Democratic-led House approved a bill Thursday to slap punishing taxes on big employee bonuses at firms bailed out by taxpayers.
    The bill would impose a 90 percent tax on bonuses given to employees with family incomes above $250,000 at American International Group and other companies that have received at least $5 billion in government bailout money.

    --------------------


    Out of all the possible ways of dealing with this bonus situation, do you notice that the House dems find that ONE WAY ("punishing taxes", 90% taxed) that is most repugnant to conservatives? haha!

    Here's a pic of Nancy Pelosi and Charlie Rangel for you, announcing thier new bill to the press:

    House passes bill taxing AIG, other bonuses - Capitol Hill- msnbc.com
     
  19. B_starinvestor

    B_starinvestor New Member

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    that was pretty clever.:wink:

    If they want rentention tools, they can offer deferred comp and other types of handcuffs..which are better means of retention than cash anyway.

    I'd rather you just flip me off next time.
     
  20. D_Ireonsyd_Colonrinse

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    star, it's all such a public relations ploy. You know this legislation is probably illegal and will wind up in court.

    John Boehner tried to get House republicans to vote against the bill, but most voted with the dems anyway.

    During Pelosi's press conference, a congresswoman swept up to the microphone and said, dramatically (regarding the bonuses): "The game is over. The casino is CLOSED!"
     
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