{"id":7526,"date":"2009-03-18T20:25:37","date_gmt":"2009-03-19T03:25:37","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=7526"},"modified":"2009-03-18T20:25:51","modified_gmt":"2009-03-19T03:25:51","slug":"the-fed-translated-5","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7526\/the-fed-translated-5\/","title":{"rendered":"The Fed Translated….."},"content":{"rendered":"

Well, it’s time to do a little Fed translating again.   This one was a big one, so settle in and let’s translate it.    As usual, my comments are in bold and italics.<\/p>\n

Release Date: March 18, 2009 <\/p>\n

For immediate release <\/h3>\n

Information received since the Federal Open Market Committee met in January indicates that the economy continues to contract.  The economy continues to contract – no surprise there.  But ask yourself, if the economy continues to contract, then why is the stock market rallying?<\/b><\/i><\/p>\n

Job losses, 651,000 jobs lost in February, <\/i><\/b> declining equity and housing wealth over 20% of the homeowners with mortgages are underwater<\/i><\/b>, and tight credit conditions not only in mortgages, but home equity loans, credit cards, car loans etc.,<\/i><\/b> have weighed on consumer sentiment and spending.  Weaker sales prospects and difficulties in obtaining credit businesses are having a harder time getting credit too.<\/i><\/b> have led businesses to cut back on inventories and fixed investment.  U.S. exports have slumped as a number of major trading partners have also fallen into recession. This isn’t just a US recession, it’s pretty much all across the country.<\/i><\/b>  Although the near-term economic outlook is weak gee, that’s an optimistic outlook of things, don’t you think?<\/b><\/i>, the Committee anticipates anticipates?  Is that sort of like I anticipate that I’ll become a millionaire by the time I’m 45?<\/b><\/i> that policy actions to stabilize financial markets and institutions translated – more bailouts<\/b><\/i>, together with fiscal and monetary stimulus translated – the Fed’s printing press will be working overtime!<\/i><\/b>, will contribute to a gradual resumption meaning we really don’t know when things are going to turn around <\/i><\/b>of sustainable economic growth. <\/p>\n

In light of increasing economic slack here and abroad, the Committee expects that inflation will remain subdued but they don’t say for how long<\/b><\/i> inflation will stay subdued<\/i><\/b>.  My estimate is that we’re looking at 12 to 18 months before the economy recovers enough for inflation to become an issue.  <\/i><\/b> Moreover, the Committee sees some risk that inflation could persist for a time below rates that Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Well, it’s time to do a little Fed translating again.   This one was a big one, so settle in and let’s translate it.    As usual, my comments are in bold and italics. Release Date: March 18, 2009 For immediate release Information received since the Federal Open Market Committee met in January indicates that the economy […]<\/p>\n","protected":false},"author":44,"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":[29,26],"tags":[184],"class_list":{"0":"post-7526","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-group-therapy","7":"category-lending","8":"tag-the-federal-reserve","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1955,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1955\/fed-trades-a-sharp-pain-quick-recovery-for-extended-convalescence\/","url_meta":{"origin":7526,"position":0},"title":"Fed trades a sharp pain, quick recovery for extended convalescence","author":"Greg Swann","date":"September 21, 2007","format":false,"excerpt":"This is my column this week from the Arizona Republic (permanent link): \u00a0Fed trades a sharp pain, quick recovery for extended convalescence As I write this the Federal Reserve Bank just cut its federal funds rate and also its discount rate, both by half-a-percent. The Fed doesn't control mortgage interest\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":982,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/982\/peeking-into-bernankes-crystal-ball\/","url_meta":{"origin":7526,"position":1},"title":"Peeking into Bernanke’s Crystal Ball","author":"Brian Brady","date":"February 2, 2007","format":false,"excerpt":"Do you want to look into the crystal ball through the eyes of Federal Reserve Chairman, Ben Bernanke? Will that help you predict mortgage rates and housing prices for 2007? 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":6769,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6769\/the-fed-translated-4\/","url_meta":{"origin":7526,"position":2},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"January 30, 2009","format":false,"excerpt":"Tom here\u2026.\u00a0 Sorry for the delay, but better late than never\u2026.. (my comments are in bold) The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1\/4 percent. Nothing new there and no surprises.\u00a0 Can\u2019t go lower than zero and\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"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":7526,"position":3},"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. What\u2019s up with the \u201crange\u201d of rates?\u00a0\u00a0 Well, they\u2019d look pretty foolish if they said they wanted the rate to be at .25%\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4545,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4545\/mortgage-market-week-in-review-10\/","url_meta":{"origin":7526,"position":4},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"September 19, 2008","format":false,"excerpt":"I\u2019ve got to tell you, I\u2019d love to be able to write one of my Friday updates and tell you about some good news or tell you, \u201cYou know, the week was very non-eventful and everything just flowed on quite smoothly.\u201d\u00a0\u00a0\u00a0\u00a0\u00a0 That certainly didn\u2019t happen this week!\u00a0\u00a0\u00a0 To attempt to\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4578,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4578\/the-vanderwell-proposal-project-rebuild-banking\/","url_meta":{"origin":7526,"position":5},"title":"The Vanderwell Proposal – “Project Rebuild Banking”","author":"Tom Vanderwell","date":"September 22, 2008","format":false,"excerpt":"Since Secretary Paulson put his proposal in three pages, I'm going to lay out my proposal in less space than that.\u00a0\u00a0 Here goes: Point #1 - The Treasury is hereby authorized to spend up to $700 Billion to stabilize the banking and financial services sector in such manner as it\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/7526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=7526"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/7526\/revisions"}],"predecessor-version":[{"id":7527,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/7526\/revisions\/7527"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=7526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=7526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=7526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}