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Fed and ECB announce half point cut in interest rates
CNN ^

Posted on 10/08/2008 4:20:37 AM PDT by TigerLikesRooster

World's leading economies -- led by U.S. Federal Reserve and European Central Bank -- announce half point cut in interest rates.

(Excerpt) Read more at edition.cnn.com ...


TOPICS: Breaking News; Business/Economy; News/Current Events
KEYWORDS: ecb; economy; fed; futures; halfpoint; ratecut; wallstreet
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To: savedbygrace

“Negative interest rates? Has that ever happened? How would that work?”

They can slightly negative if people are willing to pay a small fee to the government to keep their money. For example they could buy $1million face value of T-bills for $1.001 million. You can Google “negative interest rates japan”. However, nominal rates cannot get seriously negative because people can just stuff money in mattresses and safe-deposit boxes and “earn” 0%.

Of course *real* (after inflation) interest rates can be quite negative, as they are now with Fed Funds at 1.5%.


21 posted on 10/08/2008 5:05:23 AM PDT by reaganaut1
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To: TigerLikesRooster
At least they did it before our markets opened. Buy, buy, buy. Energy and financial shares will skyrocket.
22 posted on 10/08/2008 5:06:45 AM PDT by tobyhill (Hey Politicians, you're at the mercy of the taxpayers this time!)
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To: DB
Sure, DB, we all already knew that....Ahhh...the feds are panicking....the dark liquidity pools have a huge amount of cash and they are sitting on it. Why? The hedge funds and derivatives economy has reversed.

What the numbers nationally if you can find them on states' fairs, retail, etc.

CA is leading the way with their $15 billion budget crisis.

This is just the tip of the iceberg....in the meantime...let's keep giving handouts to all the illegals.

23 posted on 10/08/2008 5:12:20 AM PDT by RSmithOpt (Liberalism: Highway to Hell)
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To: M203M4
So true in your take on the 'always borrowing is good' mentality.

I have to agree with you. Gooobermints cannot control natural disasters, financial markets manipulations, corruption greed, deceit, and 'those 2 neighbors starting' a war.

Therefore, sitting on some savings, living within one's on means is practical....too bad the idiots in Congress and Wall St. can't comprehend those virtues.

24 posted on 10/08/2008 5:16:58 AM PDT by RSmithOpt (Liberalism: Highway to Hell)
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To: NRG1973

they don’t seem to have a lasting affect.

They don’t because they’re only a small part of the overall investing formula.


25 posted on 10/08/2008 5:18:28 AM PDT by ConservativeGreek
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To: TigerLikesRooster

well, they did a good job of crushing an up day on Wall Street. The futures were up about 178 points until this announcement. Now they are only 40 points up and heading down.


26 posted on 10/08/2008 5:42:49 AM PDT by southlake_hoosier (.... One Nation, Under God.......)
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To: DB

When banks aren’t lending to each other and LIBOR is going up, then money isn’t easy. Also, higher spreads mean that lower interest rates weren’t making it down to consumers and businesses either.


27 posted on 10/08/2008 5:49:54 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: TigerLikesRooster

Good. Should have been done a week ago. And should be more.


28 posted on 10/08/2008 5:50:42 AM PDT by Freedom'sWorthIt (We are now living in AMERIKA thanks to Comrade Obama's promised Communistic Changes in Missouri)
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To: NRG1973

Then the President goes to Congress and announces together with the enemies there - so they can get some credit - a massive tax cut for businesses, individuals, effective immediately.

THIS WEEK!


29 posted on 10/08/2008 5:52:48 AM PDT by Freedom'sWorthIt (We are now living in AMERIKA thanks to Comrade Obama's promised Communistic Changes in Missouri)
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To: TigerLikesRooster

The Fed is so stupid. Band aid on an aneurysm.


30 posted on 10/08/2008 5:59:06 AM PDT by montag813
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To: PAR35; TigerLikesRooster; bamahead; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; ...

Ping!


31 posted on 10/08/2008 6:03:18 AM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: TigerLikesRooster

Gasoline on the fire.


32 posted on 10/08/2008 6:04:39 AM PDT by murphE ("It is terrible to contemplate how few politicians are hanged." - GK Chesterton)
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To: TigerLikesRooster

re #31....DOW down -198...yeah way to move dudes.


33 posted on 10/08/2008 6:15:19 AM PDT by RSmithOpt (Liberalism: Highway to Hell)
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To: TigerLikesRooster

At 8AM Dow Futures were DOWN -193. So where’s the beef in this rate cut? Guess it ain’t goona work or it will make things even worse.


34 posted on 10/08/2008 6:17:31 AM PDT by teletech (Friends don't let friends vote DemocRAT)
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To: Freedom'sWorthIt
Then the President goes to Congress and announces together with the enemies there - so they can get some credit - a massive tax cut for businesses, individuals, effective immediately.

THIS WEEK!

Will this spur banks to lend again and end the credit crisis?

35 posted on 10/08/2008 6:22:17 AM PDT by teletech (Friends don't let friends vote DemocRAT)
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To: RSmithOpt; teletech
Now comes the phase in which whatever Fed/gov does is viewed as yet another indication of looming catastrophe. $700bn, a sign of catastrophe; rate cut, another sign of catastrophe; do nothing, probably a sign of total capitulation.

This could be Warp 9 crash alright.

36 posted on 10/08/2008 6:23:58 AM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: lonevoice

ping and see post #4 for now it will affect you and I.


37 posted on 10/08/2008 6:26:58 AM PDT by Pride in the USA
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To: Notary Sojac

Saving is great, when one has a job and the means to save...I think that’s the concern here.

No solution will make everyone happy. Leave it alone, and you face companies not making payroll due to freezing of short-term credit (which the rate cut may only mitigate slightly)...

Unemployed people don’t save ANYTHING!


38 posted on 10/08/2008 6:31:09 AM PDT by RockinRight (Obama who?)
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To: TigerLikesRooster
Now comes the phase in which whatever Fed/gov does is viewed as yet another indication of looming catastrophe. $700bn, a sign of catastrophe; rate cut, another sign of catastrophe; do nothing, probably a sign of total capitulation. This could be Warp 9 crash alright.

The Fed has thrown everything at this but the kitchen sink and, so far, it hasn't stopped the slide. I know there is an answer even now and I hope they find it and soon!

39 posted on 10/08/2008 6:31:18 AM PDT by teletech (Friends don't let friends vote DemocRAT)
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To: M203M4

That’s never been what I’ve been taught.

I’ve been better lately but admit that most of my 20s (I’m 31 now) I spent too much and saved too little. However, I think I learned the lesson early enough to right the ship.

However, today, I, like many Americans, am more concerned about my ability to remain employed at the moment than whether I earn 3% or 6% on a CD.


40 posted on 10/08/2008 6:38:37 AM PDT by RockinRight (Obama who?)
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