Fed in Hot Seat Again on Economic Stimulus

[groovedaddy]

WASHINGTON — With unemployment high and inflation low, a question is being asked more often and more loudly: Can and should the Federal Reserve do more to get the economy moving?

In two days of Congressional testimony that begin on Wednesday afternoon, Ben S. Bernanke, the Fed chairman, is likely to answer yes, but not just yet.

Mr. Bernanke’s view is that the economic recovery is continuing, though at a modest clip, and that recent developments — the stock market’s swoon, Europe’s financial turmoil and weak job creation — are discouraging but do not yet justify additional monetary stimulus.

Mr. Bernanke says he believes that there are situations that could justify new measures on top of what the Fed has done so far: keeping short-term interest rates to near-record lows and amassing a portfolio of government bonds and mortgage-backed securities, which has put downward pressure on long-term rates.

http://www.nytimes.com/2010/07/21/business/economy/21fed.html?th&emc=th

[DJ13]

1. Can and should the Federal Reserve do more

They can, they should, but Bernanke is a Republican (why are they always Republicans?), and stagnation going into November serves the elites who want the GOP to regain some power.

[jtuck004]

2. They set aside $14 trillion to make sure Wall Street firms

could survive, whose bonuses in 2009 were $38 billion.

And they can't decide whether to spend money so that 30 million people, who want to work and pay taxes, can?

[CountAllVotes]

3. he should raise the rates

then people will have something called dividends again and they will spend them on stuff.

Bernanke is a god damn fool.

The sooner he is gone from the job the better IMO.

Damn shill he is and nothing more than that!

:kick:

[Statistical]

4. Um dividends have nothing to do with rates.

Plenty of very high dividends available right now.

http://www.google.com/finance?q=VZ
Verizon (VZ) 7.16%

http://www.google.com/finance?q=NYSE%3AMO
Altria (MO) 6.59%

http://www.google.com/finance?q=NYSE%3ALLY
ELI Lilly (LLY) 5.61%

http://www.google.com/finance?q=PG
Proctor & Gsmble (PG) 3.36%

[CountAllVotes]

5. how's the BP stock doing btw?

:D

[Statistical]

6. Very well.

Got back in at $29, plus sold some $27 Aug puts which look to expire worthless.

The only question is stay or sell.
I sold some $36 Sept calls against the stock so I am capped in terms of profit at expiration but the calls have a lot of premium.

[CountAllVotes]

7. I thought you said you sold it a long time ago

I guess I was wrong. You continue to reap benefits from these criminals I see. How can you look at yourself in mirror? Have you seem what the gulf looks like recently? :puke:

[Statistical]

8. I did sell it a long time ago. Hence the term got BACK in at $29. n/t

[angryfirelord]

9. I highly doubt

that one trade from one person is going to somehow benefit a multi-billion dollar corporation. The market doesn't care what your personal beliefs are, so you may as well have the company pay you something in return. :) Just don't buy right before the dividend date because then you'll lose money.