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http://money.cnn.com/news/newsfeeds/...3-24037412.htm
WASHINGTON, Mar. 26, 2008 (Thomson Financial delivered by Newstex) -- The Federal Reserve deserves praise for its creativity in the face of unprecedented financial market problems, Treasury Secretary Henry Paulson said today, <h3>but the kind of expanded lending the Fed has been doing to investment companies needs to be limited to emergency conditions only.....</h3>
....the Fed has also opened its discount window to non-banks <h3>for the first time since the Depression</h3> and greatly expanded its lending of Treasury securities to broker-dealers.
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Quote:
http://www.investmentnews.com/apps/p.../REG/767507756
Q. How bad will things get?
A. I would argue this is the worst financial crisis the U.S. has had since the Great Depression. We haven't seen this type of real financial turmoil for the last 70 years. Of course, it's not going to be as bad as the Great Depression. But this isn't your typical run-of-the-mill recession that in the last two episodes lasted only eight months with a minor contraction in output.
This is going to last at least 12 months and more likely 18 months, which is something we haven't seen in decades.
Q. So you expect the economy to start turning around in mid-2009?
A. The real economic activity, yes. But some parts of the system are going to be in a severe contraction for much longer; home prices are going to keep falling for another three years, in my view. And the financial mess is going to take years to clean up....
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Originally Posted by Ustwo
Never mind we live in the greatest prosperity EVER in the history of mankind, its swirls down the toliet as you say because we have an approaching recession, something we have NEVER seen before!
I think you need a dose of perspective.
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Originally Posted by loquitur
Host, Baraka..... I think the two of you have fallen prey to the recency/proximity fallacy, which is that the events closest to you in time and space get used to define baselines for comparison of ongoing events to "normal." Hitting an economic rough patch is a sign of a healthy, correcting economy that is purging toxins from its system. It's roughly the same as your kid running a fever that has to run its course so that the virus can be killed off: it looks pretty worrying while it's happening, but it does pass and then the kid goes on to grow....
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okay....??? Are we over reacting....I have posted quite a bit of supporting material for my opinions?
...or, are loquitur and Ustwo exhibiting indications that they are in deep denial in reaction to what is already upon us?
How can "toxins be purged", when our "national socialist" leaders have constructed a "floor" for what they claimed was a "free market"? They didn't create a ceiling, and they worked mighty hard to help those who reaped the profits of the "up move", pay the smallest percentage of taxes on their gains since....well.....since 1932!
Looks like a once in 75 years "event" to me.... the economic downturn unprecedented in the living memory of over 90 percent of the US population.....BWDIK.... I only painstakingly support everything I post, and these two guys have earned advanced degrees and are in professional practice in their respective fields....