Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerIn general I am not in favor of bailing anyone out of their mistakes in judgment. This goes double for investment banks and hedge funds. If investors in these funds want relief they can go to court in those cases where shenanigans or negligence occurred.
I was going to write a post suggesting that Chairman Bernanke do nothing for the next five years and leave the 5.25% Fed Rate alone. It seems to me that stability and consistency in the market are very important and I do not believe that Wall Street should go crying to uncle Ben when they blunder. I have reassessed this position and now believe a 0.25% rate cut would at least reassure the markets that the Federal Reserve is not in hibernation and is paying attention to current events. While the price of a bottle of milk has gone up and so have many other staples. Fuel prices, and home prices have come down as have most modern appliances. Computing power and productivity continue to rocket upward.
Based on my lowly observations inflation is at least temporarily holding steady so while we might debate the subject, there is no debate about the credit crunch. Having come to this conclusion, The Fed should still wait until their next meeting to take action and not before, because they need to show some discipline in an environment where all of our other financial institutions have lost their minds and a lot of credibility Moody's & S&P credibility called into question - my rating FFF.
Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well -- INCLUDING ANY BAD CALLS.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.
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Reader Comments (Page 1 of 1)
8-16-2007 @ 12:06PM
Chantelle said...
To prohibit an even bigger economic crisis, if the FEDS would pump money into the financial institutions with stipulations the chaos to the real estate market based on other than speculation buying could be averted. If 2 year arms that went up, or are to go up 3% this year (avg 6.25% to increase of 9.5%), on PRIMARY homes rates could be frozen for 2-3 yrs then investors might not make as much money, but the homes might not go into foreclosure and personal bankruptcies at this level of the private property owner and his personal home could be averted. This would stabilize the private sector and help the real estate market to not have another rash of foreclosures. The speculative buying from investors moving from stocks to real estate for flips is a different animal, and do not think that the FEDS should just pump money into a failed situation that is not over. Investors could save their investments, just have a smaller return if they would agree (with help from FEDS to stabilize) to freeze interest rates on 2 year arms. This is not the same as the "teaser rates" that were much lower. Just one Mortgage Broker's opinion. I refused to finance primary homes on "teaser rates" as it was not in my clients' best interest. Some of us are very reputable and have clients we do repeat business with, not based on volume.