Comments on: Fed Approaches Negative Real Interest Rate Territory http://www.nakedcapitalism.com/2008/01/fed-approaches-negative-real-interest.html Mon, 23 Nov 2009 05:03:06 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Independent Accountant http://www.nakedcapitalism.com/2008/01/fed-approaches-negative-real-interest.html#comment-3494 Independent Accountant Tue, 29 Jan 2008 14:00:00 +0000 http://www.nakedcapitalism.com/2008/01/fed-approaches-negative-real-interest-rate-territory/#comment-3494 I blasted the Boskin Commission when it was first formed. It was designed to reduce reported inflation and it did as told. No one should believe any government statistic. I blasted the Boskin Commission when it was first formed. It was designed to reduce reported inflation and it did as told. No one should believe any government statistic.

]]> By: Brock http://www.nakedcapitalism.com/2008/01/fed-approaches-negative-real-interest.html#comment-3490 Brock Tue, 29 Jan 2008 09:37:00 +0000 http://www.nakedcapitalism.com/2008/01/fed-approaches-negative-real-interest-rate-territory/#comment-3490 I'm in Singapore, and the inflation is in my opinion much, much higher than their stated figure. I think the government is just full of it. Unfortunately, when I communicate to my North American friends that the stats are likely political mumbo jumbo they compare this position to 9/11 "truthers". I’m in Singapore, and the inflation is in my opinion much, much higher than their stated figure. I think the government is just full of it. Unfortunately, when I communicate to my North American friends that the stats are likely political mumbo jumbo they compare this position to 9/11 “truthers”.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/01/fed-approaches-negative-real-interest.html#comment-3485 Anonymous Tue, 29 Jan 2008 08:05:00 +0000 http://www.nakedcapitalism.com/2008/01/fed-approaches-negative-real-interest-rate-territory/#comment-3485 Re: Substitution bias occurs because a fixed market basket fails to reflect the fact that consumers substitute relatively less for more expensive goods when relative prices change.<br/><br/>>Geometric substitution is my favorite statistical trick, where you substitute steak for chicken and tweak the model to conform to your bias; fun stuff!<br/><br/>Re: Aggressive rate cuts are justified if there's ``conclusive evidence'' that household income prospects are in danger<br/><br/>> By overreacting to stock market trivialities, like an index going down 3%, or 5%, we have a Fed panic to sustain the good times for speculators, by setting up the possibility of successive rate cuts to continuing goosing the market.<br/><br/> Even in a casino, you kind of expect the invisible hand of economic uncertainty to be a probability factor to hedge against (people do lose cash in Vegas), but when The Fed is on an outright Mission From God To Save The Stock Market, they are synthetically removing variables for market efficiency and increasing future risk. If they create the implied illusion that they can subsidize risk and failure and become an insurance agency, this goes back to Greenspans warning of moral risk!<br/><br/>If they had collective Fed brain cells, they would keep the Fed powder dry and begin an aggressive program to have audits performed and game the regulation side of this equation coin, instead of being part of the casino collusion, where they design new ways to rig the game. <br/><br/> We need accountability, and if you listened to that link about The Economic Summit, Blair is to have said we need the equivalent of a UN rapid reaction force to step in, or some type of early warning system linked to global accounting regulation; he also says the worst is to come. If The Fed keeps putting more free chips on the blackjack table, they will come, they will play.... Re: Substitution bias occurs because a fixed market basket fails to reflect the fact that consumers substitute relatively less for more expensive goods when relative prices change.

>Geometric substitution is my favorite statistical trick, where you substitute steak for chicken and tweak the model to conform to your bias; fun stuff!

Re: Aggressive rate cuts are justified if there’s “conclusive evidence” that household income prospects are in danger

> By overreacting to stock market trivialities, like an index going down 3%, or 5%, we have a Fed panic to sustain the good times for speculators, by setting up the possibility of successive rate cuts to continuing goosing the market.

Even in a casino, you kind of expect the invisible hand of economic uncertainty to be a probability factor to hedge against (people do lose cash in Vegas), but when The Fed is on an outright Mission From God To Save The Stock Market, they are synthetically removing variables for market efficiency and increasing future risk. If they create the implied illusion that they can subsidize risk and failure and become an insurance agency, this goes back to Greenspans warning of moral risk!

If they had collective Fed brain cells, they would keep the Fed powder dry and begin an aggressive program to have audits performed and game the regulation side of this equation coin, instead of being part of the casino collusion, where they design new ways to rig the game.

We need accountability, and if you listened to that link about The Economic Summit, Blair is to have said we need the equivalent of a UN rapid reaction force to step in, or some type of early warning system linked to global accounting regulation; he also says the worst is to come. If The Fed keeps putting more free chips on the blackjack table, they will come, they will play….

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