We need double digit rates.
Zee markets have been very naughty and need discipline!.
Posted on 09/17/2007 5:10:39 PM PDT by Kaslin
Economy: What the Fed does Tuesday will set the tone not just for the rest of the year, but for the rest of the decade. With so much at stake, the central bank has to get it right. That means a bigger rate cut than expected.
In this case, the right thing would be to drop the fed funds rate at least a half-point to 4.75%. This would help keep the credit crunch from morphing into an ugly recession — something the Fed can avoid if it acts quickly and boldly to re-liquefy the economy.
A little over two weeks ago, Fed Chairman Ben Bernanke said these words: "Well-functioning markets are essential for a prosperous economy." Fed policies, he added, will try "to promote general financial stability and to help ensure that financial markets function in an orderly manner."
(Excerpt) Read more at ibdeditorials.com ...
WSJ says do the opposite - hold the line.
They’ll cut by 25 basis points. Their aim is to make the market happy. The only question is whether 25 basis points will do.
I agree. Our Nation needs to learn to work again. And the ugly alternative to a lower dollar is protectionism.
Unchanged with a cut bias.
Oil is above $80/bbl, gold is above $700/oz, the US dollar index is at 79.7, and natural gas is above 7/bcf. The Fed should raise rates to fight inflation.
I tend to agree...
Well. Could one of y’all please come speak to my classically homeschooled class of 9th graders who are trying to comprehend Free Market Economics in light of the current events playing out before our eyes? I’ll pay you with a Creole Bread Puddin’ & Whiskey Sauce.......
There are many thinking 1/2 percent...
We need double digit rates.
Zee markets have been very naughty and need discipline!.
NOT GOING TO HAPPEN.
As if our dollars aren’t worthless enough. What this economy needs right now is time and tough love to work out the excess from the the housing/credit bubble and bursting. The fed lowers 50 basis points and it signals that agenda is to bailout housing flippers and no standard money lenders at the cost of inflicting massive inflation.
The fed lowers 50 basis points and it will have 0 credibilty not only in the US, but world wide.
If they go 100 I’ll buy a new house.
One minute I agree with you, the next minute I want a rate cut. I have read a number of opinions on both possibilities, and there are good cases made for both. What to do?
One thing I always keep in mind is the old saw that it takes months for the economy to fully respond to any Fed action, maybe longer. In that regard, the Fed is and has been behind the curve a number of times, so maybe a rate cut might be best to get things back in balance a bit. I dunno.
That’s funny. Setting the tone for “THE REST OF THE DECADE” sounds dramatic until you realize that’s barely over 2 years.
The decade is 79% over, you babbling twits! Quit waving bloody shirts as if a rate cut means the world is ending. The economic cycle has not been repealed. Expansions are followed by contractions, deal with it.
(Not you, Kaslin, I’m yelling at the twits.)
Wouldn’t the dollar drop even further?
Don’t they have to protect the currency?
I agree with you. A cut would only serve Wallstreet bad decisions. When the Feds throw out common good for everyone and start listening to Wallstreet pundits the market will be in shambles. Rates to remain unchanged.
(Not you, Kaslin, I’m yelling at the twits.)
Real rates are still negative.
****
What does that mean? I don’t know.
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