The Federal Reserve on Tuesday held benchmark U.S. interest rates steady at 5.25
percent for a ninth straight meeting and said that while downside risks to growth had risen "somewhat," inflation remained its main concern.

The decision by the central bank's Federal Open Market Committee keeps the overnight federal funds rate at the level it hit in June 2006 after 17 straight quarter-percentage point
increases.

In recent statements, Fed officials have said housing market weakness and financial market volatility has not spilled over into the broader economy, and they have held to their forecast of steady if somewhat sluggish growth through 2007.

The economy grew at annual rates of 0.6% in the first three months of the year, and 3.4% in the second quarter of 2007. The Fed's central forecast is for growth of between 2.25% and 2.5% for 2007.

At the end of last week, stocks plummeted on comments by a Bear Stearns official that credit market conditions were at their worst in two decades. However, stocks rose sharply on Monday as investors snapped up perceived bargains.

At the same time, inflation has shown signs of easing. By the Fed's favorite measure, core inflation drifted below 2% in June. Many Fed officials have said they would like to see inflation contained in a 1% to 2% range.



http://www.cnbc.com/id/20163589

Bernanke and Da Boys have spoken! LOL! :D

Cramer still spitting fire.

I heard him the the background during the announcement. Sounded like he swallowed his dentures when they mentioned "inflation." LOL!!! :D

I heard him the the background during the announcement. Sounded like he swallowed his dentures when they mentioned "inflation." LOL!!! :D


LOL.

I was still kinda worried they would've folded under the pressure.

Actually, I know a group of guys that started a mortgage company last year. And I told them over and over again that it was a mistake. They didn't listen. I'm going to drive by their office today to see if they had to shut down just so I can laugh.

LOL.
I was still kinda worried they would've folded under the pressure.
Actually, I know a group of guys that started a mortgage company last year. And I told them over and over again that it was a mistake. They didn't listen. I'm going to drive by their office today to see if they had to shut down just so I can laugh.
That is so cold! ROFLMAO! :p

It was very stupid of them though. Didn't they read the papers? Even a fool could've see the housing market slow down coming.

Please tell me they didn't get into sub-prime or where stupid enough to give themselves loans in an attempt to flip property.

If they were in commercial in certain areas they might be okay!

Let me put it this way, they were seeking financing for a certain group of people that couldn't get financed at the bank. And I remember specifically saying that when the Fed hiked the fed funds rate that the underwriters are going to come and call these debt instruments due. People were going to lose their homes and mortgage companies would go out of business as the credit spread would be too small for them to earn a profit - or the underwriters would be unwilling to provide credit.

You can't tell black people nothing. They too hard head.

By SAM SMITH, Guardian Staff Reporter

samsmith@nasguard.com

Standard and Poor's has recommended this nation's investment climate to the world; and with Wall Street banking on The Bahamas, the Ministry of Finance is working to close the deal on two large projects sitting in limbo on New Providence.

High on the S&P's list of reasons for bumping The Bahamas' international rating was this nation's large resort development initiative, which the now-dissolved Ministry of Financial Services and Investment estimated at $12 billion and which the international rating agency predicted will result in decreased unemployment and a greater per-person gross domestic product.

But the devil is in the details for many of these multi-billion-dollar development projects, which are simultaneously praised for their ability to slingshot this growing economy further ahead of the Caribbean region and dismissed for their demands that construction materials be imported duty free and their properties sold without stamp tax.

Baha Mar, now owner of the Cable Beach Resorts for instance, has been attempting to hammer out a final heads of agreement for more than a year, during which time the company has endured significant changes in corporate ownership and a seachange in political climate.

Representatives for the Albany development, a 565-acre proposal for southwestern New Providence, have also been meeting with Cabinet and the Ministry of Finance through two administrations over the course of several months with an eye to finalizing government concessions.

Zhivargo Laing, the minister of state for finance and member of Prime Minister Hubert Ingraham's Cabinet of advisors, said it has met with both groups "and others" to discuss details that were not finalized under the former-Progressive Liberal Party administration.

Laing, who is sworn to secrecy on matters before Cabinet, declined to give a timeline on the dialogue with the two large investment groups or to make public any particular sticking points in the negotiations.

"We're trying to work as quickly as possible with these companies," Laing said in a telephone interview yesterday. "For the most part, what we are doing is trying to ensure that those concessions they are requesting can be met."

Much of the country's future success is pinned to ongoing foreign direct investment, Laing said.

"To continue to grow at the rate we are, we of course require and welcome international investment in our country," Laing said, stating that fiscal prudence and a balanced budget also factor into the equation when an agency, such as Standard & Poor's, renders an investment rating.

"We're pleased with S&P's rating," Laing said of Wall Street's decision to bump up The Bahamas. "It's an indication that The Bahamas is in a good way going forward."

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Well blow me down, Laing is the same fella who said before the election that there was no real growth in the economy last year:jawdroop: :jawdroop:

What lies we tell for power:eek: :eek: and he say he is a Christian :eek: what is this man...

What make this really bad is that so many people believed that bull.. The previous Gov certainly put things is place what will see the economy continue to improve.. Even Laing say so.:hammer: :hammer: :hammer: