For the past week, I have been making the case for the Federal Reserve Board to leave interest rates alone and protect the dollar. HEY BEN I HOPE YOU HAVE BEEN LISTENING! Today and tomorrow, the BIG meeting is going on and the world awaits which way we go. Stand your ground Ben, you have given enough breaks to Wall Street and the bankers, let them pay for the mess they created, not John Q. Public (again).
No investment bankers are giving back the multi-million dollar bonuses they received when they were pushing their CDO packages out the door as fast as the ratings agencies' (perhaps fraudulent) AAA ratings stamps dried. No way should they be given a pass on this.
I also am not that worried about home foreclosures. If speculators take a loss, they will learn a lesson (I hope) and if you bail them out they will be at it again. If the banks take a loss on the foreclosures, they will have to sell them at a lower price (current market) to other families that also need a home -- THE HOMES WILL NOT SIT EMPTY, the banks will unload them.
Many mortgage holders like Countrywide Financial (NYSE: CFC) will get workouts from the banks so they are not foreclosed on. Many banks have already proposed doing this, and set up special programs to do so because they know it will reduce their overall losses anyway.
Inflation has not been whipped -- the only thing that has been whipped is the once-almighty dollar. Time to show some backbone Ben -- stand up to Wall Street and protect the dollar. I'm here if you need me!
To find potential opportunities and verify my track record, read Chasing Value or Serious Money.
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)
10-30-2007 @ 5:33PM
todd said...
amen, the most intellegent thing I have read this year.
keep up the good work
10-30-2007 @ 9:56PM
Mr. noitall said...
I agree with your position, Sheldon, but I don't think Ben has a backbone, look for a 1/4% cut tomorrow.