Posted on 10/08/2008 4:14:44 AM PDT by navysealdad
Fed Orders Emergency Rate Cut to 1.5 Percent; Futures Soar
(Excerpt) Read more at foxnews.com ...
This is going to end up doing more harm than good.
Yup, more heroin for the junkie. Gotta get that one last high. Does it ever occur to these people that this collapse is happening because we are already way, way overextended?
Didn’t I hear easy credit was what got us into this mess ?
Might be the last train out to get liquid if we get a dead cat bounce today.....
I think Europe and China have just announced similar measures.
Probably all coordinated?
Bank of England also cutting interest rates just announced on Sky News.
Well then you heard wrong. Social engineering by government is what got us in this mess, but that doesn’t change the fact that this is a bad idea right now. The government is just flailing now... trying everything to get the engine started again whether it addresses the problem or not.
I’ll take anything that will get stocks moving back up.
Can anyone tell me if there has been a precedent for a coordinated global discount rate cut like this?
Yes, I think they are essentially coordinating on the “rescue”. Isn’t Japan already at 0% and has been for a while?
Europe markets were heavily down, but coming up to even or positive rapidly. Amazing.
Cool. Now the banks will have a 5.25% spread on the money they are not lending out instead of a 4.75% spread.
The PTB’s in the system needed to do the sort of things we have seen over the last month in April after Bear went down. At this point, I am thinking that the Fed, SEC, and Treasury got too far behind the event curve and herd psychological feedback cycle to influence events the way they want to.
I won’t try to pretend that I’m anything but ignorant about these kinds of matters, but my impression is that this is a last-ditch desperation move. Maybe we’ll get a small bounce out of this, then off the cliff.
I don’t like seeing the Dow like this either. At some point folks jump in to get bargains. I can’t believe it will go much further right now without a correction up. Just when folks think it’s never going up, it will.
Is this the global plunge protection team running under cover of a global rate cut ? Rapid movement.
It was predicted that Fed would cut the rate. I think it is rumor that they will cut it down close to 0% if necessary.
“Can anyone tell me if there has been a precedent for a coordinated global discount rate cut like this?”
All the markets are experiencing the same problems, so they will essentially do the same thing. The Central Banks chairmen communicate often and even meet regularly.
Futures are down. Please correct title.
Actually the futures are up at this very moment. The S&P, Dow and Nasdaq.
The Real DJIA (logarithmic)
The Real SP 500 (logarithmic)
That will require capital gains cuts and other similar measures. Otherwise stocks will move up temporarily but crash again as deleveraging continues.
Europe Market rally losing steam. Looks like all those hoping to see a dead cat bounced just shot their rolls. Today was starting to look like the Death of Europe financially. Vienna was around 10 % down. The World Central Banks used the only weapon they had.
Thanks for the charts Notary Sojac. They were interesting.
Yep. Banks are still insolvent, zero percent doesn't change anything.
......At this point, I am thinking that the Fed, SEC, and Treasury got too far behind the event curve and herd psychological feedback cycle to influence events the way they want to......
The event curve includes points in Europe and Asia. Events there lagged those here. The coordinated effort is to realign the timing and settle markets globally. The calming will be in reverse. Asia Europe America will be the order.
Also it’s Yom Kippur today so Jewish people can’t buy/sell on Thursday. Many will sell today because of fear.
On Thursday the shorts come back...
The theives are trying to get their engine started with gas they siphoned out of our gas tank last night.
It’ll help the dead cat bounce today and that’s it.....retail in this area (Raleigh, NC) is way off and people aren’t going to the movies nor eating out, well at least a 30% drop in those 2 mentioned. Just on the news this morning. Expect the market to bottom and stay flat until 1st qtr 2010 unless the goobermint is hell bent on continued craping of the entire nation with stupid economic and energy policies. Charlotte, just NC this morning, froze hiring and spending......get the picture?
I would not call a 159 pt tick up on the DOW futures...soaring. Bloomberg is 1½ hrs behind on updating their site with the futures...something is amiss.
No different than laying around naked for days in an opium den with members of the opposite sex and having a rich relative pay for it all. (yes that sick...maybe not nice to post, but the comment reflects the scenario of how many in corporate America and our government 'work')
Too much money wasted overbuilding housing, flipping houses, 2nd mortgaging for niceities, growing government, paying for the care of illegals, fighting the WOT (not a waste in the long run), paying undeserved mega bonuses to corporation execs, fraud, all basically too much sucking at once from a monetary point of view.
Nothing of real value was created in the process like infrastructure improvements and domestic energy production.
Basically, a lot of ignorant over-indulgent middle class folk and/or frugal blue collar workers are broke now because of the COL (taxes, food, energy) grew faster than wages or as in the former group, spent what they couldn't afford.
Wow. That was a short surge. European markets going back down again. Where is that bottom ? Over 3 to 6 % down now.
“Where is that bottom ?”
At least another 50% might be gettinh close.
75% more drop might get me to anaylize it as a possible investment.
I agree, I was just stating that the cut was predicted to follow the bailout. Only thing that is going to work is big tax cuts across the board and a measured decline in Government spending in unnecessary areas.
Now the futures are TANKING!! WTH is goin’ here?! This is RIDICULOUS!!
Dow futures down almost 300, S&P down 36, Nasdaq down 50!!
This REALLY SUCKS! I sure hope this is a bottom coming up.
Asia got hammered last night. Jakarta market stopped trading. Russian market closed until Friday. Europe was going down. Way down. Vienna ATX was near 10 % down, then the lending rate cuts were announced. Half a point. Changed the momentum, but the rally stalled and has lost its steam. Vienna ATX now back down 7.6 % near closing.
The allowed illegal invasion, housing bubble, easy credit, growing government, 'fair trade' is a contrived scheme.
Regardless, still the US manufacturing base (continued loss in sectors) is shrinking and that, my FRiend, is the basis of a shaky economy.
The service / retail sector based economy notion is and was a lie to begin with.....goods and products take priority over retail / services (other than medical services) that the cash flow itself would keep the economy flowing. What horse manure.
The real underlying problems stem from our national debt, too large a government, and continued trade deficits with China and OPEC.
Ok, now let's add in the $45-$70 trillion global derivative market.....that's an entire economy that was created from thin air (wild notions of uncollateralized debt with distributed insurance - risk).
Isn't that what is sucking the cash now??
Everything dropped like a ROCK at the open, over 2% down across the board, now everything’s UP!
This is NUTS! I hope this is a sign that were at a bottom.
How would we know were at the bottom with the idiots in charge still manipulating the market, thereby making this an unnatural market?
Neither candidate last night hammered this enough.
If we cut the waste in government, stupid programs (no child left behind, federal education dept., etc), pork, etc., cut taxes we can begin paying down our debt. That will strengthen the dollar and foreign investment dollars will flow back this way.
Ronald Regan already proved how well this works.
Probably market sell orders that didn't get filled yesterday.
I have a feeling when quarterly reports start showing up, we'll be going down more. As low as 8,000 or lower. SAP has already rung the bell for the tech sector.
Pretty soon it will go negative - they’ll be PAYING us to borrow money!
Fasten your seat belts. Its gonna be a crap shoot. European markets made major very quick swings. We have good news from the rate cut, but bad news from Asia and now the European bad news turned good is bad again. Might be more relaxing to play Russian Roulette. Good luck. Got to run.
FWIW, I just talked to my Merril broker of thirty years - he’s had many ‘capitulations’ over the past couple of days. Folks he’s not heard from in years calling and telling him to get them out of the market regardless of price and to send them a check.
Usually a fairly reliable indicator of a bottom.
Ok I’ve got to plaid a little bit of ignorance in some economic stuff, but didn’t Japan go through this for a few years back a few years ago, they just kept lowering interest rates to they basically got down to almost 0%.
It was the community organizer's approach to real estate finance.
I know how they feel! I get tempted to do the same thing, but after 35-40% losses across the board, you’d THINK we couldn’t go much lower.
Usually when the “I think we’re doomed this time” feeling starts to kick in, that’s USUALLY when things start to improve.
I’ve got that feeling NOW, so I hope we’re almost there!
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