# Thank You Ben Bernanke! Liquidity Trap Anyone? **URL:** \ **Category:** NYSpeed Off Topic\ **Created:** [December 16, 2008, 12:00pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834 "2008-12-16T12:00:27Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![ecoshardcore](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ecoshardcore/32/7591_2.png) [@ecoshardcore](https://forums.speedlife.net/u/ecoshardcore)\ **Post date:** [December 16, 2008, 12:00pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/1 "2008-12-16T12:00:27Z")
> **[Fed cuts target for key rate to a record low](http://www.nbcnews.com/id/28223836)** > > The Fed has cut its target for a key interest rate to the lowest level on record and pledged to use “all available tools” to combat a severe financial crisis and prolonged recession. How does a supposed master of monetary theory and macroeconomics still not get it? Cheap money from the fed and free money from the treasury will only exacerbate this crisis that was fueled by easy money. Yarghh, this economy is screwed. Our central bank has fucked us over again. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [December 16, 2008, 12:04pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/2 "2008-12-16T12:04:24Z")
> [@ecoshardcore"](#): > > Our central bank has done has fucked us over again. and you made it through a macro-e class? ---
**Author:** ![Dr.Stevil](https://avatars.discourse-cdn.com/v4/letter/d/da6949/32.png) [@Dr.Stevil](https://forums.speedlife.net/u/Dr.Stevil)\ **Post date:** [December 16, 2008, 12:06pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/3 "2008-12-16T12:06:13Z")
any predictions from the people in the banking industry? I’m not gonna lie, this shit is totally above my head. It’s hard to seperate the bullshit from the facts ---
**Author:** ![ecoshardcore](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ecoshardcore/32/7591_2.png) [@ecoshardcore](https://forums.speedlife.net/u/ecoshardcore)\ **Post date:** [December 16, 2008, 12:08pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/4 "2008-12-16T12:08:35Z")
> [@theblue](#): > > and you made it through a macro-e class? yes, both intermediate and advanced with an A. grammatical error fixed 🙂 ---
**Author:** ![Fry](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/fry/32/7284_2.png) [@Fry](https://forums.speedlife.net/u/Fry)\ **Post date:** [December 16, 2008, 1:50pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/5 "2008-12-16T13:50:14Z")
It would appear that Helicopter Ben doesn’t think we are in a liquidity trap any longer. ---
**Author:** ![ILC](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ilc/32/5337_2.png) [@ILC](https://forums.speedlife.net/u/ILC)\ **Post date:** [December 16, 2008, 1:54pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/6 "2008-12-16T13:54:01Z")
It appears he has a different view on the subject, and has a different plan than you do… Hence him not getting it I would imagine ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [December 16, 2008, 1:56pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/7 "2008-12-16T13:56:13Z")
liquid tarps never work. ---
**Author:** ![n20junkie](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/n20junkie/32/7396_2.png) [@n20junkie](https://forums.speedlife.net/u/n20junkie)\ **Post date:** [December 16, 2008, 1:58pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/8 "2008-12-16T13:58:59Z")
This is such a goat fuck. They should have just left it alone, its like little kids trying to tune a turbo drag car. They are adjusting shit, but have no fucking clue what it will do. ---
**Author:** ![Fry](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/fry/32/7284_2.png) [@Fry](https://forums.speedlife.net/u/Fry)\ **Post date:** [December 16, 2008, 2:17pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/9 "2008-12-16T14:17:58Z")
^Such is economics. ---
**Author:** ![cougarspeed](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/cougarspeed/32/7468_2.png) [@cougarspeed](https://forums.speedlife.net/u/cougarspeed)\ **Post date:** [December 16, 2008, 2:34pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/10 "2008-12-16T14:34:48Z")
When I saw the news break and the market rally I almost smashed my computer. This is not something main street should cheer at all. This was done because of how fast the economic condition is deteriorating. This is an act of desperation. ---
**Author:** ![ultradriver10000](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ultradriver10000/32/7397_2.png) [@ultradriver10000](https://forums.speedlife.net/u/ultradriver10000)\ **Post date:** [December 16, 2008, 2:46pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/11 "2008-12-16T14:46:07Z")
All I can say is hold on guys this is going to get interesting. ---
**Author:** ![pdubya](https://avatars.discourse-cdn.com/v4/letter/p/f07891/32.png) [@pdubya](https://forums.speedlife.net/u/pdubya)\ **Post date:** [December 16, 2008, 5:19pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/12 "2008-12-16T17:19:23Z")
and its goin to get ugly ---
**Author:** ![JoesTypeS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joestypes/32/7190_2.png) [@JoesTypeS](https://forums.speedlife.net/u/JoesTypeS)\ **Post date:** [December 16, 2008, 5:20pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/13 "2008-12-16T17:20:55Z")
Dude you have no idea how bad it is… ---
**Author:** ![ILC](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ilc/32/5337_2.png) [@ILC](https://forums.speedlife.net/u/ILC)\ **Post date:** [December 16, 2008, 5:42pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/14 "2008-12-16T17:42:41Z")
ok All I can find on this is… In monetary economics, a liquidity trap occurs when the nominal interest rate is close or equal to zero, and the monetary authority is unable to stimulate the economy with traditional monetary policy tools. In this kind of situation, people do not expect high returns on physical or financial investments, so they keep assets in short-term cash bank accounts or hoards rather than making long-term investments. This makes a recession even more severe, and can contribute to deflation. Any further explanation? But if this is true… I don’t know why someone would take such a deliberate act to make a recession more severe. ---
**Author:** ![Fry](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/fry/32/7284_2.png) [@Fry](https://forums.speedlife.net/u/Fry)\ **Post date:** [December 16, 2008, 6:10pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/15 "2008-12-16T18:10:35Z")
Normally the fed can dump money into the system and people take that money and invest it, stimulating economic growth. In a liquidity trap it is theorized that people take that money and just sit on it because they’re afraid to invest it. Hence monetary policy fails. ---
**Author:** ![JoesTypeS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joestypes/32/7190_2.png) [@JoesTypeS](https://forums.speedlife.net/u/JoesTypeS)\ **Post date:** [December 16, 2008, 7:18pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/16 "2008-12-16T19:18:56Z")
The hope is that this will almost force banks to start making good loans to companies who are getting denied bc of the environment not fundamentals ---
**Author:** ![cougarspeed](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/cougarspeed/32/7468_2.png) [@cougarspeed](https://forums.speedlife.net/u/cougarspeed)\ **Post date:** [December 16, 2008, 7:33pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/17 "2008-12-16T19:33:07Z")
Well this really signals weakness in our economy and shows how bad of shape we are really in. IMO anyone who thinks we are on our way to recovery in the next 5-8months is out of their mind. This is a true last ditch effort. Next you know they are going to be buying back any type of security that needs it and pumping treasury cash out of fire hoses up and down the streets. ---
**Author:** ![cougarspeed](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/cougarspeed/32/7468_2.png) [@cougarspeed](https://forums.speedlife.net/u/cougarspeed)\ **Post date:** [December 16, 2008, 7:36pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/18 "2008-12-16T19:36:54Z")
Oh and I forgot to add ![http://img.photobucket.com/albums/v220/elf_of_doriath9/non-icon%20randomness/its_a_tarp.gif](http://img.photobucket.com/albums/v220/elf_of_doriath9/non-icon%20randomness/its_a_tarp.gif) ---
**Author:** ![JoesTypeS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joestypes/32/7190_2.png) [@JoesTypeS](https://forums.speedlife.net/u/JoesTypeS)\ **Post date:** [December 16, 2008, 8:31pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/19 "2008-12-16T20:31:52Z")
> [@cougarspeed](#): > > Well this really signals weakness in our economy and shows how bad of shape we are really in. IMO anyone who thinks we are on our way to recovery in the next 5-8months is out of their mind. This is a true last ditch effort. Next you know they are going to be buying back any type of security that needs it and pumping treasury cash out of fire hoses up and down the streets. I was on a conference call with very high ups at a VERY big bank and they basically said if you can’t get money by feb, you’re not getting it for 3 years ---
**Author:** ![cougarspeed](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/cougarspeed/32/7468_2.png) [@cougarspeed](https://forums.speedlife.net/u/cougarspeed)\ **Post date:** [December 16, 2008, 9:25pm UTC](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834/20 "2008-12-16T21:25:03Z")
> [@JoesTypeS](#): > > I was on a conference call with very high ups at a VERY big bank and they basically said if you can’t get money by feb, you’re not getting it for 3 years But I want to buy a house in April ☹ Looks like I will have to pay cash. :mamoru: Right now is such a great time to not be poor. Im not being an asshole to you people not doing well but from an investment standpoint. This is where serious wealth can be made. As long as you dont get caught up in the tarp lol. [Next page](https://forums.speedlife.net/t/thank-you-ben-bernanke-liquidity-trap-anyone/59834.md?page=2)