{"id":3777,"date":"2008-08-06T08:33:01","date_gmt":"2008-08-06T15:33:01","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3777"},"modified":"2008-08-06T08:45:42","modified_gmt":"2008-08-06T15:45:42","slug":"know-nothing-do-nothing-fed-inspires-confidence-and-encourages-faith","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3777\/know-nothing-do-nothing-fed-inspires-confidence-and-encourages-faith\/","title":{"rendered":"Know Nothing, Do Nothing Fed Inspires Confidence and Encourages Faith"},"content":{"rendered":"

The Federal Reserve released it’s August statement yesterday<\/a> and pundits are scrambling to interpret what was and (equally as important) wasn’t said.\u00a0 Financial market participants have a 10-15 year history of trying to “outguess” the FOMC and focus more on the commentary than the actual decisions.\u00a0 The result has been volatile market movements directly after a word was changed from “probable” to “eventual” in the Fed commentary.<\/p>\n

I’ve learned to trust Fed Chairman, Ben Bernanke’s judgement.\u00a0 An astute student of Milton Friedman’s study of The Fed’s role in the Great Depression<\/a>, Bernanke has taken considerable action to preserve a healthy banking system.\u00a0 Free market enthusiasts would argue that his intervention is artificially\u00a0 postponing the eventual asset deflation reflective of a dour economy.\u00a0 I’d argue that his actions were necessary to promote confidence.<\/p>\n

Confidence.<\/strong><\/p>\n

Sean Purcell and I discussed the press’ obsession with doom and gloom yesterday.\u00a0 Last month a Qantas 747 lost a portion of its fuselage, had to quickly descend below the 10,000 “hard deck”, and make an emergency landing.\u00a0 The 2.0 world gives us citizen journalism in the form of this passenger video<\/a>.\u00a0 Watch it and you’ll see a professional air crew inspiring confidence in faithful passengers.<\/p>\n

The Australian News realized that “professional” and “rational” won’t sell fishwraps and elected to lead with “Terror As Huge Hole Cripples Qantas Plane<\/a>“:<\/p>\n

\n

A QANTAS jet plunged 20,000 feet and was forced to make an emergency landing after a giant hole was ripped in the plane’s undercarriage, passengers say.<\/strong><\/p>\n

The Qantas Boeing 747, en route from London to Melbourne, via Hong Kong, landed safely today and a “gigantic” hole was discovered in the belly of the plane, near the wing.<\/p>\n

Some of the 346 passengers on board told of debris flying through the depressurised cabin, and oxygen masks dropping from the ceiling. Some said the plane had plunged about 20,000 feet after a door “popped”.<\/p>\n

“There was a terrific boom and bits of wood and debris just flew forward into first (class) and the oxygen masks dropped down,” Melbourne woman Dr June Kane told ABC Radio.<\/p><\/blockquote>\n

An option to “lead with the bleeder” rather than the heroism of the air crew.\u00a0 Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Federal Reserve released it’s August statement yesterday and pundits are scrambling to interpret what was and (equally as important) wasn’t said.\u00a0 Financial market participants have a 10-15 year history of trying to “outguess” the FOMC and focus more on the commentary than the actual decisions.\u00a0 The result has been volatile market movements directly after […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5],"tags":[215,214],"class_list":{"0":"post-3777","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","8":"tag-ben-bernanke","9":"tag-federal-reserve-bank","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":761,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/761\/why-the-fed-matters-to-real-estate\/","url_meta":{"origin":3777,"position":0},"title":"Why The Fed Matters to Real Estate","author":"Dan Green","date":"December 12, 2006","format":false,"excerpt":"The Federal Open Market Committee meets today and will keep the Fed Funds Rate unchanged at 5.250%. It is not what the Fed does, however, that should concern Americans. It's what the Fed says. First, a clarification. The Fed Funds Rate is directly tied to Prime rate which impacts lines\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16296,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16296\/can-bernanke-keep-mortgage-rates-this-low-into-2015\/","url_meta":{"origin":3777,"position":1},"title":"Can Bernanke Keep Mortgage Rates This Low Into 2015?","author":"Brian Brady","date":"April 1, 2013","format":false,"excerpt":"I've been a vocal critic of Ben Bernanke.\u00a0 I thought his Quantitative Easing schemes would eventually create a bubble in the Treasury and mortgage-bond markets.\u00a0 Bernanke has committed to keeping rates low for another 18-24 months. 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I try to outguess the Fed all the time and I've decided that we'll see a significant decline in short-term\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1928,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1928\/nobody-behind-the-curtain-cookies-and-milk-judo-and-not-repeating-history\/","url_meta":{"origin":3777,"position":3},"title":"Nobody Behind the Curtain — Cookies and Milk — Judo — And NOT Repeating History","author":"Jeff Brown","date":"September 17, 2007","format":false,"excerpt":"What went on with the speculation about the Fed Funds Rate all last week, and will surely intensify today and tomorrow, has been almost, but not quite analogous to the scene in The Wizard of Oz, when we discovered there was a man behind the curtain. The characters were told\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6152,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6152\/the-fed-translated-3\/","url_meta":{"origin":3777,"position":4},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"December 16, 2008","format":false,"excerpt":"Release Date: December 16, 2008 The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1\/4 percent. 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