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What do you think of the Fed?


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2007 Mar 20, 8:36am   25,869 views  259 comments

by Patrick   ➕follow (59)   💰tip   ignore  

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Is the Fed really responsible for the housing mess? They definitely contributed through their interest rate cuts, but buyers and realtors must also have some responsibility.

And is the Fed as wicked as the non-mainstream press believes? There are dozens of sites accusing the Fed of keeping the rest of us down through inflation and various shady deals, but I've never heard a really convincing explanation. As I understand it, a little inflation is good because it encourages people to invest or spend rather than simply sit on their money.

Patrick

#housing

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165   DaBoss   2007 Mar 21, 9:43am  

No I think after 5-10 years you get to collaberate.network and get great ideas working with others. You world does open up.

You get brain damage if you work in a bad enviroment. I been there too. Spotting the bad vs is good work place is very important. Knowing the difference is 1/3 of the cure.

The 23 yr old out of school and into hot IPO is nonsense. Its takes years of soul seaching... I worked for old guys who seen it all.

The problem today is greed... i want to be a millionair before 30....

166   FormerAptBroker   2007 Mar 21, 9:44am  

Randy H Says:

> I’ve got other friends who are a dinc couple in the
> hinterlands of the East Bay in a McMegaMansion
> which is well under their purchase price now (they
> bought in late 05). They have probably 30-40% equity,
> and can make payments so long as both work.
> They want to move because now they’re both
> commuting well over 1.5 hours each way. They won’t
> even consider selling until they “get back to even”.

I’m just curious, do you know if their near term plan was for the wife to become a soccer mom when they bought in the East Bay?

Even if I was married to a beautiful smart woman and we both worked at Bishop Ranch it would suck to be childless and living in San Ramon (or even worse Pleasanton)…

It would be pure hell to sit on BART for an hour and a half every night looking forward to a dinner at the new Olive Garden before heading home to see the Prego floors in our “Great Room”…

167   astrid   2007 Mar 21, 9:45am  

John F,

It's okay, Peter P is an enigma wrapped in an astrological mystery. I still don't understand him.

Peter P,

I think truly intelligent and broad minded people are fun to hang around, regardless of their occupation. It's true that many of them end up as lawyers.

168   DaBoss   2007 Mar 21, 9:45am  

I admire Asians hard work and dedication
to groups. They are a great addition to our economy.

169   Peter P   2007 Mar 21, 9:45am  

No I think after 5-10 years you get to collaberate.network and get great ideas working with others. You world does open up.

I agree. But I met most of my friends on the golf course, directly or indirectly, although I am a 36 handicapper. ;)

170   jtfrankl   2007 Mar 21, 9:46am  

Yes, so am I. So is the CEO of my company.
Are you self employed/founder/etc? I imagine not "rank and file" like myself...

171   Peter P   2007 Mar 21, 9:47am  

I think truly intelligent and broad minded people are fun to hang around, regardless of their occupation. It’s true that many of them end up as lawyers.

One of my best friends is a lawyer who hates lawyers. :)

172   Peter P   2007 Mar 21, 9:48am  

Are you self employed/founder/etc?

No. But I am a self-hater. :(

173   DaBoss   2007 Mar 21, 9:48am  

Bottom Line ...
You got to have education and then relevant experience...
Creativity will either come to you (your the chosen one) or it wont (another smoe).

174   astrid   2007 Mar 21, 9:49am  

Pleasanton is not *that* bad, though Tri-Valley area is too hot for life long SF dwellers.

If the Future Mrs. FAB is a stay at home (or working severely reduced schedule) wife, she should learn to cook.

175   DaBoss   2007 Mar 21, 9:53am  

"I agree. But I met most of my friends on the golf course, directly or indirectly, although I am a 36 handicapper."

LOL! Want to make it big.. hang out with the Star Trek engineer crowed at conventions. I mean it!!! The talented engineers just love that stuff and cant put it down... LOL! I mean they go nuts.. on How would you make this gismo work ... they make me laugh and give me a headace..... and look what we have today.

It may be 2007 but I assure you its 1984 Revenge of the Nerds Second Edition...

176   astrid   2007 Mar 21, 9:53am  

I don't like sports, except hiking. I'm probably screwed as far as social networking is concerned.

Are there network opportunities in cooking or gardening?

177   astrid   2007 Mar 21, 9:55am  

Why can't they love good sci-fi like the Foundation Trilogy? Or even Dune?

Or Hitchhiker's Guide to the Galaxy? Then I'm all set.

178   jtfrankl   2007 Mar 21, 9:55am  

No. But I am a self-hater.

I see. I am more of a playa hater myself. I knew I must have been doing something wrong.

179   DaBoss   2007 Mar 21, 9:56am  

astrid - I dont know Im only in the Accounting profession.

180   Peter P   2007 Mar 21, 9:57am  

Are there network opportunities in cooking or gardening?

Definitely.

I heard flying is good too.

181   e   2007 Mar 21, 9:57am  

One more thing about test taking mentality are the “cheating is okay” or that you can find a silver bullet and win every time. It truly devalues humanity, ingenuity, ethical conduct and hard work.

And that's -exactly- what it's going to take to survive moving forwards in America - unless you want to be an hourly service worker.

Look at our global competition. Do they have the same values?

CEO or bust.

182   FormerAptBroker   2007 Mar 21, 9:58am  

Space_Acer Says:

> i want to be a millionair before 30….

Here are a few tips (from someone who got there before 40)

1. Diversify (I had 90% of my net worth in RE when the market crashed in the early 90’s)
2. Learn to use the shift key (Adults use the shift key)
3. Learn to spell millionaire (There is an “e” on the end)

183   Peter P   2007 Mar 21, 10:00am  

The talented engineers just love that stuff and cant put it down… LOL!

I still like Star Trek. Somehow I think Firefly is better. Perhaps because it paints a darker picture of the future. :)

184   astrid   2007 Mar 21, 10:00am  

eburbed,

Ultimately, a successful society needs humanity, ingenuity, ethical conduct and hard work. Otherwise, we're doomed and I'm off to find my money worshipping death cult.

185   Peter P   2007 Mar 21, 10:01am  

Cheating is not okay. One should not break any rule. One should, however, seek to change rules and bend rules.

186   astrid   2007 Mar 21, 10:03am  

"I heard flying is good too."

As in attempting to fall and failing?

Unfortunately, I have a habit of getting deathly ill (only slightly exaggerating) on most West Coast to East Coast flights. Maybe I should network by continually flying around the world.

187   e   2007 Mar 21, 10:04am  

Ultimately, a successful society needs humanity, ingenuity, ethical conduct and hard work. Otherwise, we’re doomed and I’m off to find my money worshipping death cult.

That makes sense. You need people at the bottom of the pyramid to support those at the top. Those people can believe in that kind of stuff while they're hard at work.

Meanwhile, it's better to be... say... Bob Nardelli

188   Peter P   2007 Mar 21, 10:05am  

As in attempting to fall and failing?

LOL!

I meant piloting.

I take sleeping pills on redeye flights. They are much cheaper than upgrades. And they work better.

189   astrid   2007 Mar 21, 10:09am  

Per last week's New Yorker, maybe make faux Hermes bags.

190   Peter P   2007 Mar 21, 10:12am  

You know what is my biggest problem? I do not even know my dream career.

191   astrid   2007 Mar 21, 10:12am  

I sleep with ear plugs on flights (though I still get sick some times), so I don't do much networking.

I should get a job in Shanghai with a head office in SF, that'll give me lots of in flight networking time with bored businessmen. I get along really well with bored middle age middle managers for some reason, even though I can't flirt to save my life.

192   Peter P   2007 Mar 21, 10:15am  

I should get a job in Shanghai with a head office in SF, that’ll give me lots of in flight networking time with bored businessmen.

You can end up sitting next to a crying baby. Yuck!

193   astrid   2007 Mar 21, 10:17am  

"You can end up sitting next to a crying baby. Yuck!"

Ear plugs are good to ward off babies. It's their Chinese mother/grandmothers that I can't stand. I just pretend I don't know Chinese when that happens.

194   Peter P   2007 Mar 21, 10:17am  

Ear plugs are good to ward off babies.

Not puke or other projectiles though.

195   HARM   2007 Mar 21, 10:18am  

Jimbo,

A critical part of the Fed's charter is to "ensure the safety and soundness of the nation’s banking and financial system" and
"maintaining the stability of the economy and containing systemic risk that may arise in financial markets".

I believe they have utterly failed in their oversight role (taking away the punchbowl before things really get out of hand). Alan Greedspan deserves to go down in history as one of the most reckless and non-"independent" chairmen in its history, if not the absolute worst. Far from mitigating the fallout from the tech bubble bust (which he also allowed to grow to monstrous proportions), AG made things even worse by actively encouraging an equally big bubble in real estate. How is this "better", unless you consider two speculative bubbles better than one?

196   astrid   2007 Mar 21, 10:18am  

Though it's not just the Chinese mother/grandmothers. Kids under 5 should not travel in any form of public transportation, unless they were drugged first.

197   astrid   2007 Mar 21, 10:18am  

(Did I just lose half the regular posters with that last comment?)

198   Peter P   2007 Mar 21, 10:20am  

(Did I just lose half the regular posters with that last comment?)

You still have me. You will get along well with my wife. :)

199   HARM   2007 Mar 21, 10:25am  

StuckInBA Says:

March 21st, 2007 at 11:51 am
...So it seems to me that the real price increases that should be important are food and energy. A glass of milk or a gallon of gasoline hasn’t changed it’s utility that much. Nor has it changed its features. But these are precisely the items that are not part of the “core” CPI ! To me that IS core CPI.

Just because they are volatile, doesn’t mean I am not paying higher/lower prices for them. Can they not use a trailing 12 month moving average or something to smooth out the volatility ?

SIBA,

As Peter P likes to say, "inflation is the constant (hedonically adjusted) 2%". Or, as Barry Ritholtz likes to put it, it's "inflation ex-inflation"

200   Peter P   2007 Mar 21, 10:26am  

In fact, I believe my wife made a similar comment.

201   Allah   2007 Mar 21, 10:27am  

When you don’t have money, you want a lot of money. After you have a lot of money, you become detached from it. Even after you lose it all, you won’t want to make it back.

If that is true, they shouldn't feel bad about the FB's.

202   astrid   2007 Mar 21, 10:32am  

"High-class rent-boy."

I'm trying to picture you as a Beau du Jour...do you have young Catherine Deneuve's legs and cheekbone?

203   Peter P   2007 Mar 21, 10:34am  

What is a high-class rent boy? A man that rents high-class apartments?

204   FormerAptBroker   2007 Mar 21, 10:38am  

astrid Says:

> If the Future Mrs. FAB is a stay at home (or working
> severely reduced schedule) wife, she should learn to cook.

Everyone should learn to cook…

I hated that my parents made me cook as a kid (and work as an unpaid caterer/bartender with my brother and sister when they had big parties), but today I’m glad I’m a better than average cook (and bartender)…

It is fun to have a little healthy competition in a relationship when both people try and impress each other with their cooking (and wine pairing) skills…

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