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krishnarama · Guest

Has FED given all out signal that savers are losers?. I have been pondering at what FED has been doing since last week. Not that I have any respect for this institution,but the way they are dealing with this housing crisis is just breathtaking. Now they discount window is open to brokers,mortgages can be exchanged with treasury notes,increased fannie mae and freddie mac capital ratios and loan limits.You will begin to wonder what is next?. Now all green backs are partially backed by our mortgage.s I am beginning to think that this is going to put a floor under housing market. Did anyone notice what the T-bill rate is on 3 month bills. It is less than what it was in 2003. Where is the incentive to save even if you want to?. Savers are being punished when in fact they should be encouraged.They are being flushed out and encouraged to borrow more money . Except many are not qualified for many things these days. It will be interesting to see how things will unfold.

krishnarama · Guest

You know what happened when they did similar thing in 2002. They aborted the bear market in equities and ignited massive bubble in the housing market. Where will the current measures lead us to?. Higher interest rates as foreigners fed up with these policies and dump the dollar and MBS and flush the housing market further? or put a solid floor under housing and force everyone to move from paper currencies to tangible things like commodities and housing?. Perhaps even borrow more?. If this is the case why not just borrow more?. After all plenty of idiots are still willing to lend you at 6% in USD when inflation of USD is over at least 10%.

Guest · Posted: Thu Mar 20, 2008 3:30 am GMT Post subject:

Well, here's what many don't realize, buying into foreign currencies is as easy as going to your discount brokerge firm (TD Waterhouse, E-trade, etc) and buying the ETFs of the currencies (FXS, FXC, etc) out there. One doesn't have to be a forex futures trader to do it. With that in mind, I believe that the USD still has time before it goes under because the markets have been discounting it for some time, already, despite all the bearish news.

admin · Posted: Thu Mar 20, 2008 3:38 am GMT Post subject:

sram2007 · Guest

I agree 100% with this post. All the responsible people who ddnt buy overpriced houses with huge debt loads are now being punished. Inflation is up over 7% and the best savings rate I can get is 4.5% - which will probly come down in a day or two.

I guess i should just move money overse