Doubts Surface That Fed Will Cut Interest Rates

http://www.cnbc.com/id/21541967 ^ | 10-30-07

[Hydroshock]

I hope they do not cut, inflation is picking up adn teh dollar is far too weak.

[Badeye]

If they don’t, the economy will slow down.

[Hydroshock]

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[Hydroshock]

The economy already is slowing down. At this time a recession is almost assured.

[Badeye]

I think a half point will reverse that for the time being.

[Hydroshock]

No, it will accelerate it. The further weakening of the dollar it would cause added to the rise in oil prices will cut deeply in to many budgets.

[BlabItGrabIt]

Fifty basis points for now is the ticket; with fifty more before 2008.

LOL! Where were your articles this past week when the markets rose!??:-)

[RockinRight]

Wait...if inflation is so bad then why are housing prices dropping?

[RockinRight]

Looks like we’re screwed either way. Might as well drink and party while the Titanic sinks.

;-)

[Badeye]

I don’t see it that way at all, then again I’m a small biz owner.

[Hydroshock]

Because the increase in food adn energy are sucking up the money from many family budgets.

[RockinRight]

Serious question:

Was the rise in oil prices the cause of, or due to, the weakening dollar? I mean over the last 3 years not just recently.

[Hydroshock]

The rising cost of energy and stables is my main concern. As I figure it is for many.

[Hydroshock]

I think it is one of the causes, yes.

[RockinRight]

Yes...that is true.

Although I’d rather have $1000 inflated dollars than zero deflated ones...there is a point of equilibrium. Not sure what that point is right now though. Deflationary periods have ALWAYS been in times of economic turmoil...that’s not completely true with inflation. Sure, in the 70s it was.

[NeoCaveman]

I was one of the biggest rate cut cheerleaders last time around. We had to get the financial markets unfrozen before they killed Main Street.

With that said, this time I am slighly sick of the Euro bubble (although this is more their problem than ours). I’d be happy if they stood back or at most went with a quarter point cut.

[Badeye]

‘The rising cost of energy and stables is my main concern. As I figure it is for many.’

Tightening cash flow is my biggest worry. Its becoming more and more difficult to get the financing available for a start up company, and thats starting to impact the industry I’m in.

[Clemenza]

Yeah, real smart in an era where commodity prices are skyrocketing and the dollar is in free fall.

Bring on a mild recession and let the bleeding commence in housing. Better a cold now than cancer later.

[NeoCaveman]

Because the increase in food adn energy are sucking up the money from many family budgets.

Food price increases have more to do with silly Ehtanol requirements than anything else.

High oil has more to do with the fear that we'll bomb Iran and other political instability.

I buy no energy from Europe and no food either, well maybe an occasional bottle of Spanish wine.

[Badeye]

It always comes down to ‘point of view’.

I think the Fed rates are too high to begin with.