Fed and ECB announce half point cut in interest rates

CNN ^

[TigerLikesRooster]

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

[RockinRight]

Heck, lots of illegals are leaving from what I see...perhaps one perverse benefit of a slowing economy.

[TomGuy]

DOW is up 37.

We’re saved.

Happy days are here again.

More bailout! More pork for Congress.

We’re in the money, we’re in the money.

[Toddsterpatriot]

But that won't happen. Bernanke said long ago he would manipulate longer terms rates down once short term got to zero.

Yes, to fight deflation, that's what he'd do.

Glad you finally got that straight.

[RSmithOpt]

Not really....those remaining are hoping for amnesty and have gameful employment now, well, not the 300 detained from the chicken plant yesterday.

Still, ICE is not deporting 98% of the illegals caught, nor documenting biometrically those known to be illegal, nor building a secured southern border.

BTW, there's no way with a good wall/ fence that 100% of the illegal / drug traffic would be stopped...but, we could surely make a huge dent in it.

It's still smoke and mirrors during the old dog and pony show from the feds w/ respect tho illegal immigration.

[TomGuy]

Heck, lots of illegals are leaving from what I see...perhaps one perverse benefit of a slowing economy.

Many of those 'leaving illegals' helped cause part of the problem.

Several months ago there were a couple of articles that didn't get much traction. They were talking about some real estate scams.

One real estate scam was this:

Illegals got 100%+ home loans. Some of the overage was around 25%. A while after many of the illegals got that hand full of cash, they they defaulted and fled south of the border. That left the mortgage companies holding over-priced loans. Then housing prices plummeted. So, those loans were on homes were even much, much less than the original loan amount.

Guess who gets to make up the difference?

[Zeppelin]

yeah, WaMu/JP Morgan/Chase was offering a 5.00% APY 12 or 13 month CD for the past few weeks. I opened one last week, and the offer was still up yesterday. I was going to do another next week but when I heard about the rate cut this morning, I was pretty sure they wouldn’t be offering 5.00 any more. Logged in and, sure enough, they’ve cut it to 2.93%...yowch!

[TomGuy]

It's still smoke and mirrors during the old dog and pony show from the feds w/ respect tho illegal immigration.

Many of us saw it coming. Many in high places (Washington and Wall Street, for example) had their heads in the sand or up their derrieres.

==

July 18, 2005
BusinessWeek

Embracing Illegals
Companies are getting hooked on the buying power of 11 million undocumented immigrants

http://www.businessweek.com/magazine/content/05_29/b3943001_mz001.htm

“The result is a hot new market in the making. With hundreds of thousands of illegal alien households earning enough to qualify for $95,000 mortgages, according to the National Association of Hispanic Real Estate Professionals, ITIN and conventional mortgages taken out by illegals could be worth as much as $60 billion over the next five years. That's pushing big banks such as JPMorgan Chase & Co. (JPM ) to examine the market and upping pressure on mortgage buyers Fannie Mae (FNM ) and Freddie Mac (FRE ) to create a secondary market for ITIN loans.”

[Note: This was 2005 data.]

[JDoutrider]

bttt

[flattorney]

This news release should have read......

The Federal Reserve reduced its benchmark rate to 1.5 percent in a coordinated move to further shaft retired individuals, living off fixed income portfolios, and assure a Obuma presidential win.

FYI, About 4:00 a.m. this morning the DJIA Futures where down 330 points. The DJIA opened down 180 points, now it’s up 140.

[palmer]

Glad you finally got that straight.

Me too! So where's this deflation everyone keeps talking about?

[Toddsterpatriot]

Oil down almost $60 a barrel, housing down how much?

Where is the hyperinflation? The Fed is pumping trillions into the system, the dollar will tank, oil will hit $200! LOL!

[TigerLikesRooster]

DJI's movement is very volatile. It goes up and down wildly by about 100 in a brief time span.

I am expecting a pitched battle between upward pressure and downward pressure.

In Europe, DAX and FTSE both shot up during the mid-day and plunge shortly afterward. It was limping back up near the end. DJI may display the similar movement.

[palmer]

Oil was in a contrived bubble. That was obvious from the propaganda that Goldman was putting out while they were buying it up. So oil is falling because it overshot. Housing was kind of a bubble too, you might have heard about it.

But why is gold strong / going up? It should be dropping.

[CodeToad]

“So where’s this deflation everyone keeps talking about?”

Deflation? Man, the only thing I see are prices going up all over the place. Grocery store prices have increased 30% for many products. Gas and housing are the only two things I see going down.

[Toddsterpatriot]

Oil was in a contrived bubble.... Housing was kind of a bubble too, you might have heard about it.

So the bubble was inflationary but the pop isn't deflationary?

But why is gold strong / going up?

Yeah, it's only down 12% from the peak.

[palmer]

The oil bubble wasn’t inflationary.

[Toddsterpatriot]

The oil bubble wasn’t inflationary.

This is the first time I've seen that claim on FR. Did you ever make that claim before?

Probably thousands of posts here laughing at core CPI, because it didn't include energy or food prices.

[palmer]

The truth is we don't know whether there is inflation (in a permament sense) or deflation (in a way that destroys money) until well after the fact and these blips have been smoothed out.

According to this Central banks all but stop lending bullion the reason gold is going up is:

central banks mostly European have almost completely stopped lending gold in the last few days and are not rolling forward old leases after maturity. This is because of fears that some borrowers might not repay their bullion loans if they are engulfed by the financial crisis.

So really I can't use the current strength of gold as evidence for anything either.

[palmer]

Probably thousands of posts here laughing at core CPI, because it didn't include energy or food prices.

True, but now that energy is dropping (and food will follow) you won't see those posts anymore.

[Toddsterpatriot]

True, but now that energy is dropping (and food will follow) you won't see those posts anymore.

We will, because those posters are dumb.