Official - Will The Fed Cut Rates? on 9/18 Discussion

[SlowHabit]

[ QUOTE ]
I dont know what everyone is getting worked up about.

It seems obvious that the solution to a crisis in the international banking and financial system brought about by cheap money and irresponsible lending is a cut in interest rates. [img]/images/graemlins/crazy.gif[/img]

[/ QUOTE ]
Obv.

But the question is whether or not the Fed will give in and cut the rates and how much.

And if it is obvious that the Fed will give in, then you should've bought a lot of calls on many securities and make lots of moneysss.

[adios]

[ QUOTE ]
[ QUOTE ]
I dont know what everyone is getting worked up about.

It seems obvious that the solution to a crisis in the international banking and financial system brought about by cheap money and irresponsible lending is a cut in interest rates. [img]/images/graemlins/crazy.gif[/img]

[/ QUOTE ]
Obv.

But the question is whether or not the Fed will give in and cut the rates and how much.

And if it is obvious that the Fed will give in, then you should've bought a lot of calls on many securities and make lots of moneysss.

[/ QUOTE ]


He was being tongue in cheek. I don't think the Fed made the cuts today to bail out people in danger of defaulting on their mortgages (this cut certainly won't do it). Also I don't think credit standards for new mortgages will be more relaxed as a result either. I think this cut was in response to a weaker domestic economy than what they previously thought and to provide more liquidity to various credit markets. August jobs report was not good. Weekly jobless claims have been trending higher too. Credit crunch is easing and Fed wanted to keep that going. The 50 basis point cut probably won't amount to very much in the long run if it's one time thingy. Not sure if it is or not.

[PRE]

Thanks for bailing out all the hedge funds Bernanke, they wouldn't be able to afford their payments on their Lambos without you.

[talentdeficit]

so what should we be moving our usd denominated holdings to? euro denominated holdings? precious metals? the yen?

[john kane]

do the affects of this .5 cut hit within an hour, day, weeks or month? for example is it still worth going long on the yen vs the dollar or has the time been and gone?

[Tweety]

[ QUOTE ]
I suspect it will be the expected 25 bps cut but what may prove to be more important is the bias of their forward looking statement. Hopefully the Fed will retain a neutral bias, the market will dislike this very much, my puts will increase in value then two days later the market will accept the facts and resume it's bull run.

Well no harm in hoping for the perfect outcome is there?

Jimbo

[/ QUOTE ]

Ouch! You can't be too happy about those puts right now!

[gonebroke2]

[ QUOTE ]
so what should we be moving our usd denominated holdings to? euro denominated holdings? precious metals? the yen?

[/ QUOTE ]

all of the above. if u had to choose one: gold.

[jzpiano]

Looking to buy a house in the next 30 days or so. Is is likely that the mortgage rates are going to drop in that time or are we thinking its going to be longer for it to take effect?

[dazraf69]

[ QUOTE ]
Looking to buy a house in the next 30 days or so. Is is likely that the mortgage rates are going to drop in that time or are we thinking its going to be longer for it to take effect?

[/ QUOTE ]

that is a great avatar! what was ur question....? [img]/images/graemlins/grin.gif[/img]

[Shoe]

They should have held rates steady. This sub-prime thing is blown way out of proportion.

There is still plenty of credit to go around for those who actually deserve it.

In the mean time, I will keep using 0% credit cards loans to my advantage though! [img]/images/graemlins/grin.gif[/img]