Turmoil in financial markets, FED cuts 3/4 in emergency move

[August]

So you're saying that 30 pieces of silver just doesn't buy what it used to? :p

[SUBMAN1]

Originally Posted by August

So you're saying that 30 pieces of silver just doesn't buy what it used to? :p

Yeah - back in the day, you could get a house for that.

-S

[GlobalExplorer]

Originally Posted by SUBMAN1

Yeah - back in the day, you could get a house for that.

-S

Inflation or no inflation, do you know of a house that costs 7173306613840656827838347127298700000000000 silver coins?

[SUBMAN1]

Originally Posted by GlobalExplorer

Inflation or no inflation, do you know of a house that costs 7173306613840656827838347127298700000000000 silver coins?

The value of a silver coin from back then is much different than now, as well as economic markets since that type of interest doesn't work. Metal prices will be where your 30 silver pieces hit a brick wall. This is of course going to hold a different value based on a collector of the period of course.

Anyway, lets analyze a single dollar if it existed in that period. This is a more accurate assesment of where you would be since it is a current currency. If you were to take a single dollar from that period, and compare it to now, your mathmatics would work out to it being worth about the same at around 5% interest. It actually would be worth a bit more, but basically, its value falls off the scope of my calculator. I will find a bigger calculator since its value is near non existant anymore. To be continued.....

Need to find something that will take 2 to the power of 100 to be able to calculate this.

-S

[mookiemookie]

Dow fell 128 today. Not a "meltdown". The best advice I ever got from a money manager I used to work for was that the financial media is trying to sell headlines as much as anyone else, and if it bleeds, it leads. It's never as bad as they say it is and it's never as good as they make it out to be.

I'm not sure what the Fed is thinking on this one. It's certainly going to put their backs against the wall on Tuesday. Some of our traders are hearing rumblings of another 25 bp cut tomorrow and then another on Tuesday. It'll certainly be interesting to watch.

Financial armageddon? No, don't be silly. Recession and panic? Most likely. But remember, the sun will come up tomorrow, kids.

[Skybird]

The Fed'S cut of interest rates is only trying to hide the sympt0m, but does not go fpor curing the cause. So, those 0.75% is not of lasting importance at all. what must be done is first to stop printing dollars like crazy, and second cure the ill finances of america and get the budget as well as the trade balance right again. And both will not happen soon since it would mean to give up some global privileges one got used to, and to admit that the economical "developement" of the past years was just on tick. No "patriotic" politician will easily dare to say that, fearing that he will be called a pessimist and a weakling. that's why the mortage crisis will be intentionally and knowingly given much more time to unfold it's negative consequences on more and wider sectors of the american finances and economy, and global finance markets as well.

I expect a certain solid consolidation of the financial turmoils not before second half of this year, and first American and then global economy running by a state of recession, which then again will enflame the finacial troubles again in the forseeable future. Unemployement went already up by 0.5%, which many economists agree to be a reliable indicator for a recession unfolding.

Don't buy stocks, guys - better earn your money in an honest and respectable way!

If america really wants to do the global economy a favour, it needs to fix it deepley rotten state finances, baölance it's trade deficits, stop pushing inflation, and fighting globalisation instead of exporting it's jobs into "offworld" nations. What we see now, gentlemen, is the logical conseqeunce of a.) too easy credits which enabled Americans to spend more than they could afford, and b.) the globalisation which was once pushed and propagated by america itself. If this can be stopped and reversed, is qauestionable, because the economic keyplayers are no longer attached to nations, but act independantly and internationally now, avoiding the legislation and responsibility towards nations that once has brought them up. they are no longer linked to one or a few nations, but now have established themselves as a second entitity beside nations and their international orgnaisations, independant from nations and their national control mechanism. Such corporations are able to keep states and governments in dependence and thus make policies in favouir of themselves, and absuing nation'S and people'S interests. that is nothing you should complain about, if you argue in favour of a capitalistic order - capitalistic economies do not know nationalistic sentiments. This tred was forseeable, and should and could have been known in advance, when the term "globalization" was started to be propagated. Instead, those warning of these things were called pessimists, and were laughed about. Today, nobody laughs anymore. So, we are just sufferign the consequences of our own misdeeds, and we suffer them well-deserved.

Several dozen billion dollars have already been annihilated in the past 8 weeks. Several hundred billions more will follow in the next 6 months. Switch on the money printing machines will not do any good, just make things worse by pushing inflation even more. While there will be a superficial calming of financial markets in the next weeks, and while one also must see that today's troubles were also a needed correction of the hyped stock markets in Asia and especially china, the principle problems of america affecting all the globe's economy remain. It is here were one has to start with the major efforts to adress things, and it is crucial to do so, because as I see it we are walking on the borderline of probably the gbreatest recession since the crisis of 1929. such corrections wil affect americans, yes. But they will also affect citizens around the globe, and their nation's economies. Economical growth as we have seen it in the imminent past will pause for a longer time to come - with all the social and communal conseqeunces coming from this.

[Ducimus]

I have a feeling more "tax breaks" are forthcoming from Junior. Yeah, like thats going to help. Lame.

[SUBMAN1]

Originally Posted by Skybird

...Don't buy stocks, guys - better earn your money in an honest and respectable way! ....

Dumbest idea I've heard out of you yet.

Analyze your mutual funds. You will find some dating back through the Great Depression and still averaged 13% to 14%.

I can see that you will live your life a poor man forever, based on your philosophy's and ideas. One day, maybe you will wake up out of your doom and gloom mindset.

-S

PS. Saving money the old fashioned way as you describe is the path of the poor. Just a little clue for you.

[GlobalExplorer]

Originally Posted by SUBMAN1

The value of a silver coin from back then is much different than now, as well as economic markets since that type of interest doesn't work. Metal prices will be where your 30 silver pieces hit a brick wall. This is of course going to hold a different value based on a collector of the period of course.

Anyway, lets analyze a single dollar if it existed in that period. This is a more accurate assesment of where you would be since it is a current currency. If you were to take a single dollar from that period, and compare it to now, your mathmatics would work out to it being worth about the same at around 5% interest. It actually would be worth a bit more, but basically, its value falls off the scope of my calculator. I will find a bigger calculator since its value is near non existant anymore. To be continued.....

Need to find something that will take 2 to the power of 100 to be able to calculate this.

-S

Windows calc.exe can do these calculations if you switch to "Scientific".

For instance, to calculate the said interest rate of 5% for 2000 years you only take 1.05 to the power of 2000 and multiply with the amount you had at the start. If you want to calculate backwards you of course need a logarithm, something I don't want to rack my head with at this hour

Anyway, you correctly point out that my calculation is theoretic and naive, but it still cannot be passed over, because even if the result is wrong with a magnitude of 100 it is still astronomic figure.

[quote=SUBMAN1][quote=GlobalExplorer][quote=SUBMAN1]

Originally Posted by August

Need to find something that will take 2 to the power of 100 to be able to calculate this.
-S

Try using an Excel spreadsheet. I don't think that even a Windows calculator will go out that far.

[August]

Originally Posted by Zayphod

Try using an Excel spreadsheet. I don't think that even a Windows calculator will go out that far.

I didn't say that. Please be extra careful when making multiple quotes