There were a lot of really great and informative video segments this week covering topics ranging from the Fed’s effectiveness and the outlook for inflation to regional accounts of housing stress to the forthcoming emergency actions by the federal government in response to the calamitous fall off in the housing and mortgage markets.
First, in one of the numerous Greenspan interviews this week, the former Federal Reserve Chairman suggested that we are now beyond the era of favorable interest rates and further that the 10 year note will be heading up to 8%.
Watch Greenspan Talk Doom on BNN!
In an interview with a somewhat ornery but VERY informative Jim Rogers of Beeland Interests, Rogers suggests that the Fed is irrelevant in that they, in his view, generally move after market turmoil has occurred. Rogers also points out astutely that the current market conditions shouldn’t qualify as being termed a “crisis” the as all the major indexes are only 4% – 6% below their all time highs.
Watch the Cantankerous Rogers on BNN!
In an EXCELLENT and complementary segment to the prior Rogers piece, Marc Faber of the Gloom, Boom and Doom Report joins Bloomberg to discuss his predictions for the latest Fed actions and his assertion that the US economy is already in recession. Although Faber believes that the Fed will cut interest rates, he suggests that the better move would be to actually raise them in order to fulfill their real role of maintaining the integrity of money.
Watch the always interesting Faber on BNN!
Yale Professor Robert Shiller joins CNBC to discuss the latest Fed action and his outlook for the future of housing and the economy. Shiller states that given the nature of the fallout of the credit market turmoil, namely the money market instability and the bank run in the UK, economists generally believe that the Fed’s 50 basis point rate cut was “entirely reasonable and not an aggressive cut”.
Watch Shiller weigh in on BNN!
In a particularly icky segment, Bloomberg chronicles some of the truly ugly fallout currently being experienced in California’s “Inland Empire” including foreclosure homes breeding pathogen laden mosquitoes in their stewing backyard pools, 25% home price declines, job losses and families downsizing to mobile home parks.
Watch the more Yucky side of the downturn on BNN!
Next, this segment chronicles a tough story of a homeowner that purchased an expensive home (over the conforming limit) with a 2 year adjustable loan and now after a $700 reset, is straining to make it.
Watch a real face of the downturn on BNN!
Finally, Texas Representative Ron Paul questions, at some length, Federal Reserve Chairman Ben Bernanke on the soundness of this weeks 50 basis point fed funds rate reduction eliciting a terse and guarded response.
Watch Ron Paul vs. Bernanke on BNN!
