If Bernake does leave rates alone, the market will tank. He's doomed.

Keith,
You are mistaken and you are an alarmest. The rates are frozen and for now the DJIA is still up 160 as I update.

The market is up on expectations of a rate cut as much as anything else. And please, don't belittle your readers with name calling such as "alarmist". My point is as valid as yours so don't stoop to such an impoverished level of discourse. We can easily disagree without any name calling from you.

Overlooking the market expectations is detrimental. Besides, any “tanking” of the market will always be temporary as the market has been up 75 out of the last 100 years.

Keith,
I can agree with the longer and certainly latter portion of your take on the market. Today's market however, expects no rate cut. The fed made that clear yesterday. Still might happen, but you are certainly in a speculative mood to make that comment.

Fair enough. I guess we'll see.

This is indeed a schizo market, like many of the people on the latest medication.

The Fed should keep rates where they are!

Let the greedy speculators and the reckless mortgage lenders and the foolish or careless borrowers take their lumps! The free markets NEED to adjust. Those in the lending business NEED to return to SOUND lending practices. We consumers NEED to learn a lesson from this. Live within your means!

Right on Cullen, You could probably co-write my next story. Thank you for taking the time to comment.

CULLEN FERGUSON HAS IT RIGHT. THOSE FOLKS NEED TO GROW UP AND NOT LIVE
BEYOND THEIR MEANS. FURTHER, WE (govt) SHOULDN'T BAIL THEM OUT!

The issue of lowering interest rates is far more complex than a short term fix to bail out risk takers who signed up for an arm (creditors and debtors) and instead got a leg up their rear.

Markets need to adjust to a reality level.

RE prices became too speculative and too costly.

What is more important in the long term is the affordability of owning a home in the real world, and the value of US currency abroad. Inflation out of control and the devaluation of a dollar in world markets due to less future value, caused by lower interest rates can create financial caos on a far greater scale. The US debt is the biggest it has ever been and part of the balance depends on other countrys buying the debt. Lower the incentive to buy and hold dollars by lower interest rates could create a sell off of US debt abroad. The feds are absolutely correct to keep the rates in check .
sc

Want to fix the US economy for the long term?

Forget about short term interest rate changes by the feds, this only creates instability.

Fix the deficit!!! Get the fat cats to understand that fixing long term US debt is in their best interests. The political right demands less tax and financial responsibility yet demands greater military involvement in foreign affairs. Also private equity drain and the creation of a new "middle man" in the economy is not a positive long term development. If the right wing demands greater and long term involvement in foreign excursions, then pay for it, that is a logical business decision. You cannot fight a war on credit and then farm the job out to private enterprise, duh, a calamity waiting to happen... RE markets in US, what goes up comes down, it will level off and stabalize, the fed bank should sit this one out.
sc

also, need to mention, sorry, I am on West Coast time... we need to end US reliance on Mid East oil.. run our cars on US coal, steam, hydrogen, nuclear, whatever! As long as we send trillions to the mid east for energy, we are doomed to continue a downward spiral.. US govt has to take an active part in changing the mix of energy used in this country. Cut the money to the mid east, and we solve alot of problems...

sc

No doubt, Mitt Romney offers the best chance to all the candidates to keep his promises on taxes and the economy. Now, if we could get him paired up with Senator Elizabeth Dole as his VP running mate, we will have a team that can actually beat the coming Clinton/Obama juggernaut. No other GOP candidate can do that.--Dr. Chartrand