How did the Fed orchastrate BSC losing every piece of liquidity it had?Originally posted by: Dissipate
How can anyone with any sense support the volatility the Fed has created in the market? If your head is screwed on straight there is no way you can support this. These fluctuations in the market are not natural and are actually very damaging.Originally posted by: LegendKiller
As long as the crisis they cause are better than the crisis that would have been caused without them.Originally posted by: Jaskalas
Sooner or later these ?fixes? will create a crisis of their own.
This is the crux of what many do not quite understand. These rate cuts are akin to chemo and radiation to cure aggressive cancer. Sure, the cancer sucks and we could have taken steps to prevent it, but we can't do anything about the past at this point. All we can do is treat the cancer aggressively and eventually put it into remission. At that point we get healthy again.
However, the other alternative is to take some herbal teas, hope that healthy living and a detoxifying diet along with some pain will cure the problem. People will say "let the market sort it out", where the market is your body and you use shit like Chlorela to give your body the tools to fight the cancer, by itself.
Sorry, but I don't have any trust in letting your body trying to work through it without some support that you *know* works to a certain extent.
As far as alternatives, nobody has presented any that will work. Letting the cancer go away by just letting banks fail is a ridiculous idea. It stuffs up the credit environment, which hurts consumers who are trying to refi out of ARMs into something that won't jack their rate up. Even now, they are getting unfavorable lending because the market is constipated.
Meanwhile, you get armchair econonomists pining for the days of a strong dollar, to the preclusion of all other factors. They claim that the market should "just take their medicine" without looking at what that entails. They also claim that these actions only save "bankers", yet fail to acknowledge that bankers and investors are taking their hits.
I love that internet prognosticators think they are so knowledgable about the financial market without having an inkling about what's going on inside of the markets.