Another Fat Lipped Fed Sticks a Sharp Stick in the eye of the market 10/5/12
Fed Chief Duke 1PM EST triggering the massive sell off this afternoon: "Wow, look at all the vacancies in these unoccupied homes. Wow, these homes are a drag on the real estate recovery. WOW we have to do something extraordinary because these excess real estate pieces of dreck is mud in the eye of the economy. Boy we are going to have to do something! Beats me what. So long, see you next time, when I post pictures of my cancerous #$%$ on the internet!!"
Another candidate for goys in charge with no clue as to the damage they do to the market and themselves by running around trying to look smart four years after bailing out banks, when Joe needs the help. I guess the dual part of the mandate of unemployment has those fuzzy WRONG economists trying to figure out how to meddle in this market. We've been in the real estate debacle for the last four years--if this idiot thinks lowered interest rates are meaningful when a guy can't get to 80% LTV because the value of his home is underneath his mortgage, telling us you're just figuring that out while the STOCK market tries for recovery is what part of #$%$in stupid!?
Oh? They recognize the real estate glut is the debacle?
Hey, Duke, when the #$%$ did you wake up to smell the coffee?
Unemployment goes below the 8% line, for whatever reason, the market hails a muted MEH up half percent and starts feeling its oats, because we haven't seen less than 8% for four years.
Then this jerk puts his mouth in gear Greenspan style, advising they are going to have to do something extraordinary at the Fed level because of the housing glut that won't go away--He says all of this, absolutely true but about four years too late, as this is the anniversary month of the higher standards for lending inaugurated by Barney Freak and the fudgepacking Congress which closed the door to anybody with more than 80/20 loan to house valuation--a ratio designed to fix in future, and seal the doom of anyone who had the temerity to buy real estate post Jan 2004.
It's like a leaking compartment in a submarine, you close it off and watch those caught on the other side drown. Except, the stink of brackish salt water soiled by the spit of lungs of drowned sailors enters the air filtration of the existing dry cabins "real estate", and slowly suffocates the rest of the sailors. See how that works?
I don't mind unintended consequences, but easy to see foreseen consequences is unacceptable, and this is the second time some jawboning jerk with a pedigree wakes up, smells the horseshit, expounds on the problem, and walks away leaving the room in chaos
The only expertise in the Fed room lies in their new book, "How to Snatch Defeat From the Jaws of Victory".
First of all, it was a "she" not a he. Elizabeth Dy ke.
Secondly, since she offered no solution,I guess there's no problem.....,but is backing her boss trying to push a new refi bill through Congress. Yeah, that'll happen. and if it does......and then if the repubs get in,they'll just take away the mortgage deduction.
Me? I'm buying up authenticated signed photos of Big Bird, Bert & Ernie on EBay. All I can get my paws on,