Likelihood of 100 basis-point rate cut gaining a following (Fed rate cut)

MENAFN ^ | 03/14/08 | Laura Mandaro

[nyyankeefan]

Likelihood of 100 basis-point rate cut gaining a following (Fed rate cut)...

it should be cut 200% or 300% ....

everyone should just go to loews or home depot to buy wheel barrows to cart the money around like germany in the 30’s!!!!

[kellynla]

Congress should balance the budget, eliminate the IRS, pay down the federal deficit and start "paying as they go."

But of course, that's logical, so it won't happen.

We'll continue to borrow money from the Chicoms & Arabs while we buy their cheap merchandise & very expensive oil....brilliant!

Lenin's "sell them enough rope and capitalists will hang themselves" theory was incomplete. As China may have figured out, you have to sell them the rope on credit to really hang the little piggies high.
The Aurerbach Report

[TigerLikesRooster]

sell them the rope on credit to really hang the little piggies high

What didn't a big bad wolf from a fairy tale figure it out before? So brilliant.:-)

[Freedom_Is_Not_Free]

Somebody let me know when rates reach 1%. I want to borrow one million dollars from the FED. I can service the debt at $10,000 a year for 40 years and still be able to waste the remaining $600,000 with impunity on wine, women and song. Or McMansions, Plasma TVs, and SUVs Either way, I should be dead in 40 years I think.

I love it when a plan comes together! I just want to get in on the action of borrowing masses of money you know you can never repay and leave the taxpayers holding the bag. It’s my turn and I DESERVE IT!

[Freedom_Is_Not_Free]

We are about to see $120 a barrel at the current Fed funds rate. $140 a barrel anyone?

[Freedom_Is_Not_Free]

A drop of 100 basis points will be seen as a sign of PANIC in the global currency markets, driving MORE investors into the speculative Oil Futures and Hedge Funds markets, driving the cost of energy up even MORE.

You mean slashing rates 125bp in one week wasn't a sign of panic?

[M-cubed]

The fed is spreading the losses to everyone who holds dollars (or assets that are in dollars) and away from the banks by devaluing the dollar. Everyone’s savings are devalued. <<

Such is the nature of “fiat money”....throughout history ...fiat money always goes to -0-...NO EXCEPTIONS..
Greenspan understood it way back in ‘66 http://www.321gold.com/fed/greenspan/1966.html before he got political and Keynesian religion

[Freedom_Is_Not_Free]

The liquidity from the new recent easy money is going everywhere but where it is needed. Where do you think people are getting the money to bid oil up to $100 a barrel? Same for food and metals. They are the next bubble and BurnYankees chopper cash is fueling them. He may figure that out when the Fed funds rate gets to 0% and banks still refuse to lend to each other from fear, distrust and losses.

[Freedom_Is_Not_Free]

6 months ago “palmer” said BurnYankee would inflate like hell, and that is exactly what BurnYankee is doing...

[TigerLikesRooster]

BurnYankee

LOL

[FightThePower!]

First off, if you live in Michigan your housing value is way down and your house most likely will not appraise for the same amount it did a few years ago. So you may not be able to get a loan for that will cover the amount of your original adjustable rate mortgage.

Also, mortgage rates are not going down as the fed fund’s rate falls because lender are seeing much greater risk.

Get ready for your new mortgage to cost you.

[Freedom_Is_Not_Free]

The more the dollar crashes in value the less house prices will fall in terms of dollars.

Could you expand on that correlation, because for the life of me, I can’t see it. If today’s dollar was worth a penny tomorrow, how would that affect the cost or benefit of any assets within the USA? Imports would cost 100 times more, but your income and outflow would all be relatively the same. A $100,000 income would have $1,000 value but your $500,000 mortgage would have a value of $5,000. No difference. You’ve totally lost me...

I can see how a crashing dollar and high inflation shrinks the national debt over time. But how does that stop the fall in house prices in time to end this liquidity crisis?

[FightThePower!]

“This is great for me. My ADJUSTABLE RATE MORTGAGE will go down to about 3% if this happens. ROCK & ROLL baby!!!”

Fed Efforts Foiled By Banks as Mortgage Rates Rise

The interest rate on a 30- year fixed-rate mortgage has climbed to 6.37 percent from 5.5 percent since Jan. 24, according to the Mortgage Bankers Association. The U.S. Federal Reserve has cut interest rates five times since September.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aMaXTX_3tq9w&refer=worldwide

[BlazingArizona]

A full point cut would certainly stimulate the economy, and be the start of a new bubble in something. The bad news is that the dollar would immediately go to zero.

[FightThePower!]

They want to push down the dollar. That’s they only way our government will be able to meet its debt obligations. We will pay them back with worthless dollars. The Germans did the same thing in the 1930’s.

[Travis McGee]

"If recession should threaten serious consequences for business (as is not indicated at present) there is little doubt that the Federal Reserve System would take steps to ease the money market and so check the movement."~~Harvard Economic Society, October 19, 1929

[jiggyboy]

If I see a steady move in the stock markets from like 1:45 to 2:20 or so, I’ll be betting big that it reverses at 2:30 when they make their announcement.

FWIW, the sudden ubiquity of “we’re near at least a short-term bottom” (I’ve seen at least three completely different articles in the past three days) leads me to believe that we’ll be moving up to the Tuesday announcement.

[farlander]

That’s exactly the problem. The credit default spreads are sky high, and it is a confidence thing. The Bear Stearns thing was a run on the bank. Lower interest rates won’t necessaril help that. It just needs to work itself through the system.

[jiggyboy]

I’m going out on a limb and saying that the Fed will cut by ONE HUNDRED AND TWENTY FIVE BASIS POINTS on Tuesday.

If anybody wants to see my reasoning, tonight I’ll either look for the graph I saw that made the case or gin it up by hand.

[Moonman62]

Our monetary policy at this moment in time is a disaster.

I thought it was a disaster back when the yield curve was inverted.