Interference in the Market

It strikes me that all the cutting of interest rates and proposed stimulous packages will do is artificially prop up a stock market and real estate market. I'd really like to see home and condo prices hit rock bottom before making a purchase decision.

I heard on the radio that 75% of the home mortgages going to foreclosure had some kind of fraudulent information on their loan applications (overstated incomes, etc.) Why should we prop up these people and their banks? Aren't these the same banks that charge usurous interest rates for credit cards? Aren't these the same banks that'll try to charge you $29 if you are one day late with a payment because their website had problems? Aren't these the same banks that make you press '1' for English? And, aren't these the same people who think that their Lexus is supposed to go first at intersections with a four way stop simply because it's the more expensive car? You can't get fire sale prices if there isn't a fire! Maybe the banks and the frauds should get burned?

The burned hand teaches best.

The mission of the Federal Reserve
The goals of monetary policy are spelled out in the Federal Reserve Act, which specifies that the Board of Governors and the Federal Open Market
Committee should seek “to promote effectively the goals of maximum
employment, stable prices, and moderate long-term interest rates.”

Nothing in here about stablilizing an overvalued stock market. This should only result in a delay for a well needed rest and will make more intense further declines because it helps too many people hold on when these unbalances should routinely be worked out.

Lee Spain said:

It strikes me that all the cutting of interest rates and proposed stimulous packages will do is artificially prop up a stock market and real estate market. I'd really like to see home and condo prices hit rock bottom before making a purchase decision.

I heard on the radio that 75% of the home mortgages going to foreclosure had some kind of fraudulent information on their loan applications (overstated incomes, etc.) Why should we prop up these people and their banks? Aren't these the same banks that charge usurous interest rates for credit cards? Aren't these the same banks that'll try to charge you $29 if you are one day late with a payment because their website had problems? Aren't these the same banks that make you press '1' for English? And, aren't these the same people who think that their Lexus is supposed to go first at intersections with a four way stop simply because it's the more expensive car? You can't get fire sale prices if there isn't a fire! Maybe the banks and the frauds should get burned?

Yes, they should get burned. It's so well known the Fed will bow down to Wall St., Wall St. calls it the Fed 'put' - as in options.

If people really understood what was going on, they'd disband the Fed immediately. Only Ron Paul seems to have a handle on what's going on, that's why he got my vote.