The Fed is cranking up the printing presses to smooth over the rough edges in our economy. Meantime, prices go higher and higher. Gasoline is pegged to the dollar and that goes up along with everything else we buy. In 1920s Germany they took shopping bags full of money to the market to buy stuff. Is that where we're headed?
"...what I found objectionable was [Dallas Federal Reserve Bank head Richard Fisher's] temerity in commenting: "We know from centuries of evidence in countless economies, from ancient Rome to today's Zimbabwe, that running the printing press to pay off today's bills leads to much worse problems later on. The inflation that results from the flood of money into the economy turns out to be far worse than the fiscal pain those countries hoped to avoid."
"Of course, this is exactly the policy the Fed has pursued, will pursue and that Fisher himself has voted for. This is a classic example of the Fed's MO: Talk tough and run the printing press at full speed. "
TIghten your belts. Spend your money on gold and other tangibles. It's going to get rough.
http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/TheF...
So, does this mean it's a good time to buy FCO?
This is about the worst news I've heard today, and today has been rough.
Is that an acronym for Federal Career Opportunities or for Fussball Club Oberwinterthur? Never heard of it before. I did a Google search but found nothing that sounded like what I think you mean.
... and a Depression means DEFLATION. All this asset-speculation now is certainly driving up the costs of commodities, but overall a Depression will catch it all and will deflate everything over the period of the Depression.
All those mortgages going up in smoke means all that MONEY is also evaporating out of the economy. How many of you know that a mortgage represents the CREATION of money? When the mortgage collapses, that money must also. There's a full $1 trillion in excess and soon-to-evaporate mortgage money in the nation today. Money will become more valuable ... eventually, once all these desperate losers finally realize they can't inflate their way out of such a huge asset bubble.