Oman, the poorest Gulf Arab country on the basis
of economic output per person, was cut for the first time by Moody's Investors Service, which cited the negative
impact of lower oil prices on government finances,
economic performance and balance -
of - payments.
Ryan discusses the death
of Osama Bin Laden; Ryan reviews the
economic news
of the week; Ryan notices the correlation between increased home sales and interest rate drops; Louis notes we can't expect the housing market to be supported by further decreases in rates as they are already near historic
lows; Ryan explains that interest rates change once every four hours; Ryan notes the difference between getting a quote and being locked in to an interest rate; Ryan advises the importance
of keeping in touch with your mortgage lender; Louis notes that interest rates change a lot faster than home
prices; Ryan notes that the consumer confidence was up, Ryan and Louis discuss the Fed's decision to keep interest rates where they are and to continue the $ 600 billion QE2 program; Ryan and Louis discuss the Fed's view that inflation is nascent; Louis notes that not only does the Fed not see inflation that exists but disclaims any responsibility for it; Louis asserts that there is a correlation between
oil prices and Fed policy; Louis discusses Ben Bernanke's assertion that the Fed can't control
oil prices but that they somehow can control the
impact of higher
oil prices on the rest
of the economy; Louis also remarks on Bernanke's view
of the dollar - the claim that a strong dollar can be achieved through the Fed's current policy as it is their belief that they are creating a sound economy and therefore a sound dollar; Louis notes the irony
of the Fed chastising Congress» spendthrift ways — if the Fed did not monetize the debt, Congress could» nt spend; Louis noted that as Bernanke spoke the
prices of gold and silver rose as it seemed that the Fed has no interest in cutting off the easy money; the current Fed policy will keep interest rates
low; Ryan notes that the Fed knows that they can't let interest rates rise because
of the housing mess; Louis notes that the Fed has a Hobson's Choice - either keep rates
low or let interest rates rise and cut off the recovery.