My favourite market hack Jim Kramer is throwing a hissy fit. I guess the market caught up with him and his buddies and now he is crying foul. From the looks of it he wants the Feds to do something about the current market downturn by lowering the interest rate and bail the big hedge funds.
I say no bail out, those SOBs lent money left and right to idiots who couldn't afford to pay them back. With their shady wheeling and dealing the deserve to go out of business if you ask me.
Um I think he is more upset that 7,000,000+ homes are potentially exposed to a serious risk of foreclosure because Bernanke is following an academic route regarding inflation. Compared to Greenspan's more empirical economic approachs Bernanke is simply attacking inflation that hasn't even shown up yet because economic theory says it will happen. This is causing major cash flow problems in the real estate market based on theoretical inflation. Not to brush off inflation but at the end of the day if millions of people are losing their homes because Bernanke is worried about potentnial inflation I don't blame the guy for being mad. By the way opening the "discount window" wouldn't have that great a direct affect on his earnings. It would obviously bring the market back but more importantly it would stem the tide of foreclosing and bankruptcy in the mortage industry. That is a good thing. At least I think that is his point. In between the screams and yells and based on what I know of the market that is what I gather he is saying.
08-06-2007, 09:43 PM
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