Tough Day For Obama

[DaTruth]

Originally Posted by jms62

Matt if they don't do QE3 and the markets ****ing tank big time going into November how do you think that would have helped Obama? Jimmy Rogers feels the same way, Bernanke did it to keep his job. We shall see. I see it as a ****ing boondoggle. Think about the law of unintended consequences, Fed is saying they will keep doing it until the labor market improves. The net affect is that it will inflate the markets and put a floor under it. Greedy bastard CEO's are the ones that will seriously profit from this. Why would they hire?

The Fed hopes this will create another housing bubble that won't pop for another decade or two. It as if the fed thinks our nation's economy should mirror Florida's in the early part of its decade when credit was easy and everyone could be a real estate speculator.

[Danzig]

Originally Posted by DaTruth

The Fed hopes this will create another housing bubble that won't pop for another decade or two. It as if the fed thinks our nation's economy should mirror Florida's in the early part of its decade when credit was easy and everyone could be a real estate speculator.

the biggest problem with banking wasn't housing. it was the removal of the division between investment houses and banks. the resultant mess is what took the housing market down, along with much of the rest of the economy.
how housing was affected was with a credit crunch, which dried up money for loans. then house purchases suffered(along with jobs, etc) which then forced housing prices down...that lead to people who had home equity lines of credit to have that dry up, because if their house wasn't worth as much, it didn't have as much equity either.
higher interest rate housing loans weren't the major cause of the economic meltdown. instead, housing was one of many groups that suffered because of the idiocy engendered by both parties in removing the rules in glass/steagall that had so long prevented exactly what ended up occurring.
so, they added banking regs to prevent it again (and portions of glass/steagall were removed to allow u.s. banks and investors to keep up with another group of banks-europes. funny, they're in a mess too) and romney wants to remove those. he has a shorter memory than the congress and bill clinton did a few years back.