Ben went too far

http://www.bloomberg.com/video/73736400/

"The best [the Fed] could do for markets would be to collectively resign…I think sometimes the best is to do nothing. I welcome the decision, at least today, that they aren't doing anything worse than what they have already done."

Everyone in the world has become a Keynesian. Sometimes the best is to nothing.

"Did we not vilify Alan Greenspan for doing just the same thing?"

You are too stupid for words. Alan kept interest rates too low with stronger growth and higher inflation, and far too much leverage in the financial system. Leverage is not allowed to be as high anymore, and will go only lower with Basel 3 et al. And clearly the economy stinks now.

People who want to RAISE interest rates with another recession almost at hand baffle me.

Because low interest rates are not the cure and create tomorrow's problem.

and they screw your cream cheese budget.

How exactly do low interest rates -- even if they continue until 2013 -- cause inflation at the end of the decade (ie some six years later)? Even the wildest monetarist doesn't think that the tail on monetary policy is that long.

RS, why don't you borrow some of that cheap money and buy some more of your favorite asset, like NYC RE?

No, that could spark a disastrous inflationary effect on RE prices!

Who cares? Higher RE, more cream cheese. A 1% increase buys you cream cheese for life.

Riversider is right - low interest rates created these problems

Low rates can't possibly work here.
The people who are refinancing are those with good credit scores and finances and the balance of their debt is less than their savings. Credit card rates are not sensitive to what the Fed does for the most part which is the debt of choice for those least well off. Those with impaired credit are in no position to engage in new borrowing or refinancing for lots of reasons.

Fed needs to wake up and recognize that we're deleveraging so lowering rates just hurts savers.

http://krugman.blogs.nytimes.com/2011/08/10/interest-rate-follies/
http://krugman.blogs.nytimes.com/2011/08/10/dismal-thoughts/

and of course, free money:
http://krugman.blogs.nytimes.com/2011/08/09/free-money/

"Fed needs to wake up and recognize that we're deleveraging so lowering rates just hurts savers."

Savers need to wake up and recognize that their deleveraging in the face of lowering rates is what the Fed is dealing with.

Think about it, RS. You sit around whining about how there is massive inflation and how terrible these low rates are. Meanwhile, you think NYC RE is a great investment. But rather than investing your money in that great investment, and borrowing at ultra-low rates on top to leverage your investment, you instead take your cash and pay off your loan.

You & millions like you are the problem: your actions are the reason why rates are so low. So put up & quit your whining. Why wouldn't you take this great opportunity to invest in NYC RE?

I own real estate. Do you?

But so what that you own real estate? I'm simply suggesting that you own more of it. You believe in the asset and money is too cheap in your view. So, take that money (the stuff you have saved earning 0%) and put it in the asset you believe in.

I don't own any RE. On places where there is value (lower-end in other locales), simply not worth my time to manage. For personal consumption, I borrow because I believe it's cheap to borrow. Taking out monthlies and amortizing transaction costs over 10 years, it's being lent to me at a rate of 0.0-0.5% annually. So I borrow the home and do something else with that money that would have otherwise bought the home.

See how that works? I have a view on something being lent for too cheap. I borrow that stuff and put my money elsewhere that I think is well-valued.

What you seem to do is have a view that something is being lent for too cheap (short-term savings). But rather than borrowing the stuff and putting your money elsewhere (NYC RE), you do the exact opposite. You lend the stuff out.

Interesting, you typically research so thoroughly. Have you looked at REITS or outside NYC?

are you a complete fool?

he doesn't want to invest in real estate.

you do.

you're the one endlessly pimping it.

you should research ways to invest more of your cream cheese fund into real estate.

sell your cream cheese futures and buy more, more real estate.

What CC said. We're talking about you capitalizing on your views. So that in the end you can buy as much cream cheese as you want or whatever it is you'd like.

I'll third cc's comment. RS, do you really believe investing in RE is the best use of your capital right now? If so, why aren't you buying more?

cc! you're the prettiest girl at the dance! even your former social rival heather bj is kissing the ring!

No ring kissing, but nothing wrong with recognizing when people are right.