0
0

What do you think of the Fed?


 invite response                
2007 Mar 20, 8:36am   25,775 views  259 comments

by Patrick   ➕follow (59)   💰tip   ignore  

Fed seal

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

« First        Comments 180 - 219 of 259       Last »     Search these comments

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…

205   Peter P   2007 Mar 21, 10:39am  

I like to "impress" people with the amount of oil/fat/lard in my cooking. :)

206   HARM   2007 Mar 21, 10:40am  

Thanks, Forsaken! Must've been done by the Mortgage Lender Implode-O-Meter guy.

207   HARM   2007 Mar 21, 10:49am  

They, at least enjoyed the roller coaster ride. You, on the other hand, have not lived.

This is sadly true. You haven't really lived until you've woken up at 3am in a cold sweat, because your NAAVLP payment just tripled. I should really get out more (to open houses). :-(

208   OO   2007 Mar 21, 10:59am  

(OT)
Peter P,

I remember your mentioning at one point that some dealership could go as low as $7K below MSRP on Lexus SUV, since we are shopping for a new car, I was wondering if you can point me to any resources. Thanks

I eventually drove my old car into the ground after 14 years. So we are really excited to get into a solid new car that can last a long time.

209   OO   2007 Mar 21, 11:08am  

The hardest working among all Asians are Vietnamese.

I didn't know much about them until I came to the US, since in HK Vietnamese were usually associated with the boat people locked up in a detention camp engaging in gang fights, so the general image was quite negative. However, as I got to know more and more Vietnamese people, my impression changed drastically.

If there is a shop in the neighborhood that is open 16x7x365, it's gotta be a Vietnamese shop. What is even more amazing is, Vietnamese women work much harder than guys. When I was taking a leisure trip in Vietnam, I saw plenty of women working in the fields with their guys playing poker in the shades.

210   OO   2007 Mar 21, 11:11am  

Did anyone see the API score of Faria elementary school? 1000.

What the hell does that mean? Does it mean that every single student at that school who took the test must have obtained FULL score on the API test?

211   HARM   2007 Mar 21, 11:14am  

@GC,

No worries - I figured you were being sarcastic.

212   Randy H   2007 Mar 21, 11:19am  

FAB queried,

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”…

I can't tell for sure. She comes off as the type who never wants children; but I've found that's not necessarily a reliable indicator.

It's 'Pergo', not 'Prego', although we'll pass that off as a Freudian faux pas, given the context.

by the way, i often don't use uppercase letters on purpose. after looking at YetAnotherCamelCaseCompany all day, i'm quite content to deal with the shorter end of the alphabet. it never impeded my earning ability, though poor writing skills will put a ceiling on one's career very effectively.

213   Allah   2007 Mar 21, 11:20am  

It is you guys who constantly mock the FB’s and imagine all sorts of hellish punishment for them. I have compassion for them. What that really means is that I leave them alone. They, at least enjoyed the roller coaster ride. You, on the other hand, have not lived.

Huh? How do you figure? What do you know about me? I live well, have a great family, plenty of real wealth, but best of all, I am debt free!!

214   Allah   2007 Mar 21, 11:22am  

Forsaken,

Great video! I miss your site!

215   Michael Holliday   2007 Mar 21, 11:53am  

Space_Acer Says:

“Considering all the outsourcing, I don’t see much of a future for “these kids”. We are at the very beginning of a big fallout. No one gets out of here alive!”
_____

I hope you're not right.

Unfortunately, you just might be...

Time for another chockychip cookie and some Hi-C fruit punch.

I wonder what my broke a-- neighbors are up to today?

216   Randy H   2007 Mar 21, 12:39pm  

Allah,

It is you guys who constantly mock the FB’s and imagine all sorts of hellish punishment for them.

He also charged me with being a realtor because I dared to posit that price corrections just might be sticky (almost a year ago at this point, mind you). I don't know, maybe they just aren't not sticky yet.

Filtered blog rss aggregating is essential these days. FeedDemon is your friend.

217   Peter P   2007 Mar 21, 12:44pm  

I remember your mentioning at one point that some dealership could go as low as $7K below MSRP on Lexus SUV, since we are shopping for a new car, I was wondering if you can point me to any resources. Thanks

I think that was CB. But you can start by reading newspaper for good deals, which tend to come and go.

I prefer used cars. :)

218   Claire   2007 Mar 21, 1:00pm  

OO

Two possibilities on the API score - one it's an error - two - they were all/some given the actual test to study beforehand.

219   astrid   2007 Mar 21, 1:12pm  

I had some lovely non-conventional Vietnamese friends, but I've also encountered a couple *conventional* skinny little Vietnamese girls who were borderline bitchy.

« First        Comments 180 - 219 of 259       Last »     Search these comments

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions