Happy Valentine's Day from Bernanke...
February 14, 2008
The Fed certainly wasn't showing investors much love today, as its chairman hardly minced words about the outlook on the US economy. I won't share the math here, but it does sting whenever I mosey on over to look at E*Trade.

Hard to say what happens next. Another drop in interest rates is likely, but that drop is unlikely to benefit mortgage holders or your average consumer. There was much press about the 30 day moratorium on mortgage foreclosures, but what is a tragically delinquent homeowner realistically going to do in 30 days? Lottery tickets, horse tracks or Vegas (or, Indian Gaming since they now provide a larger percentage of their gambling revenues to the state).

In fact, yesterday's economic stimulus plan is also unlikely to have much impact. Even though I'm currently unemployed, I likely won't qualify for one of those $600 rebate checks. Most consumers are predicted to either pay down debt or buy a foreign-sourced item, neither of which greatly improves GDP (some crazy 2/3 percentage of GDP is in fact consumer spending).

To avoid these unfortunate outcomes, I would have preferred the stimulus plan issue iTunes gift cards or rebates on Ford vehicles. As a shareholder in both of these companies, this plan makes great sense...to me. This is probably why I'm unemployed, and not in Congress.

tags: money