[Rhodes22-list] Dow Jones.....I hate to say it.....

[john Belanger]

someone once told me that standard interest is 3%. anything over that is inflation. with "increased liquidity" balancing out "tightness". there should be little effect on interest rates at the present time at the consumer level. i think they will rise if the government has to borrow instead of tax for things like bridges and highways because of infrastucture fears. on the other hand, these pressures are being generated by big money. so we may not be getting the whole story. 

Hank <hnw555 at gmail.com> wrote:  Brad, et al,

What will this do to interest rates? Are they likely to go up or down or
remain the same? That is something I have never understood is why they
change the rate.

Hank


On 8/10/07, Brad Haslett wrote:
>
> Dave,
>
> Let's hope I'm right and you're wrong. It smells like a necessary
> correction and a mild "bank run" to me. I'm at least ten years away from
> needing to cash-in any chips so I'm along for the ride. What a good one
> the
> last six months have been, I "made" more money in my 401K than my day job
> pays. I knew that wouldn't last.
>
> Other than the Fed stepping in to prevent a liquidity crisis, I hope the
> government does nothing. My personal solution is to drive to Branson, MO
> today for a mini-vacation before Cora starts school.
>
> Watch the market for me today and cry for us all if it gets any more
> nasty.
>
> Brad
>
>
>
> On 8/10/07, DCLewis1 at aol.com wrote:
> >
> >
> > Brad,
> >
> > Your point about the business cycle is well made - but the issue is
> what's
> > bringing it down. Is it "the usual stuff", or is it something
> > truly sinister?
> >
> > Two ponderous and conservative governmental institutions, the ECB and
> the
> > Fed, that like to move slowly and with incremental steps, moved quickly
> > to make
> > available up to 95 Billion Euros(ECB) and 24 Billion USD - done
> within a
> > space of less than 8 hours(maybe less than 4 hrs, I didn't time out when
> I
> > learned about each move). That's a lot of money and they skipped a lot
> of
> > staffing to move that quickly - It tells me there's a big urgent
> problem.
> >
> > We know a variety of US, UK, and Australian hedge funds
> have folded. We
> > know many mortgage companies have folded - not in trouble and hence had
> > to cut
> > back - simply put out of business. We know of 1 US investment bank
> > that's
> > taken a big hit. We know of at least 1 German bank in
> > receivership. Today we
> > learned the second largest bank in France is stressed. This is not
> > normal.
> > As I recall, most business cycles end because of inventory imbalances -
> > this
> > is nothing like that, this is a financial melt down.
> >
> > Welcome back!
> >
> > Dave
> >
> >
> >
> > ************************************** Get a sneak peek of the all-new
> AOL
> > at
> > http://discover.aol.com/memed/aolcom30tour
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