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  • August 17, 2007 at 5:38 AM #9914
    Coronita
    Participant

    Bernake is an idiot.

    http://www.msnbc.msn.com/id/20317894/

    WASHINGTON – The Federal Reserve, declaring that increased economic uncertainty poses risks for U.S. business growth, announced Friday that it has approved a half-percentage point cut in its discount rate on loans to banks.

    The action was the most dramatic effort yet by the central bank to restore calm to global financial markets which have been roiled in the past week by a widening credit crisis.

    The decision means that the discount rate, the interest rate that the Fed charges to make direct loans to banks will be lowered to 5.75 percent, down from 6.25 percent.

    The Fed did not change its target for the more important federal funds rate, which has remained at 5.25 percent for more than a year.

    However, it has been infusing billions of dollars in money into the banking system over the past week to keep that rate from rising above the target level.

    Many economists believe if the financial market crisis worsens the Fed will soon move to cut the federal funds rate as well.

    August 17, 2007 at 5:48 AM #76835
    GoUSC
    Participant

    Bit of turmoil here….Do I sell my shorts or risk taking a bath…

    August 17, 2007 at 5:48 AM #76956
    GoUSC
    Participant

    Bit of turmoil here….Do I sell my shorts or risk taking a bath…

    August 17, 2007 at 5:48 AM #76982
    GoUSC
    Participant

    Bit of turmoil here….Do I sell my shorts or risk taking a bath…

    August 17, 2007 at 6:01 AM #76838
    Coronita
    Participant

    Bit of turmoil here….Do I sell my shorts or risk taking a bath…

     

    I don't know. What are you shorting? You up or losing money? I'm risk adverse, so I would always take money off the table since my philosophy is better to make less than to lose. I usually have a 50% rule. If climate changes, I take half off the table. But that's just me.

    However, it feels like things are just going to bounce around a bit here.

     

    I'm no expert, but my gut feeling is that things are going to be going up and down for awhile. Market is very flaky these days.

    I’m trying to read between the lines. While there is a general euphoria of the discount rate cut, to me it’s also an admission by the Fed that “Houston, we have a problem”.

    August 17, 2007 at 6:01 AM #76959
    Coronita
    Participant

    Bit of turmoil here….Do I sell my shorts or risk taking a bath…

     

    I don't know. What are you shorting? You up or losing money? I'm risk adverse, so I would always take money off the table since my philosophy is better to make less than to lose. I usually have a 50% rule. If climate changes, I take half off the table. But that's just me.

    However, it feels like things are just going to bounce around a bit here.

     

    I'm no expert, but my gut feeling is that things are going to be going up and down for awhile. Market is very flaky these days.

    I’m trying to read between the lines. While there is a general euphoria of the discount rate cut, to me it’s also an admission by the Fed that “Houston, we have a problem”.

    August 17, 2007 at 6:01 AM #76985
    Coronita
    Participant

    Bit of turmoil here….Do I sell my shorts or risk taking a bath…

     

    I don't know. What are you shorting? You up or losing money? I'm risk adverse, so I would always take money off the table since my philosophy is better to make less than to lose. I usually have a 50% rule. If climate changes, I take half off the table. But that's just me.

    However, it feels like things are just going to bounce around a bit here.

     

    I'm no expert, but my gut feeling is that things are going to be going up and down for awhile. Market is very flaky these days.

    I’m trying to read between the lines. While there is a general euphoria of the discount rate cut, to me it’s also an admission by the Fed that “Houston, we have a problem”.

    August 17, 2007 at 6:09 AM #76844
    HereWeGo
    Participant

    That’s helpful, but probably not entirely sufficient. It certainly sends the message that the Fed is no longer on the sidelines (stealth FFR cut aside.)

    As for the shorts – hey, this risk has been out there for some time. C’est la vie

    August 17, 2007 at 6:09 AM #76965
    HereWeGo
    Participant

    That’s helpful, but probably not entirely sufficient. It certainly sends the message that the Fed is no longer on the sidelines (stealth FFR cut aside.)

    As for the shorts – hey, this risk has been out there for some time. C’est la vie

    August 17, 2007 at 6:09 AM #76991
    HereWeGo
    Participant

    That’s helpful, but probably not entirely sufficient. It certainly sends the message that the Fed is no longer on the sidelines (stealth FFR cut aside.)

    As for the shorts – hey, this risk has been out there for some time. C’est la vie

    August 17, 2007 at 6:16 AM #76850
    Coronita
    Participant

    I think I’m going to load up on EWJ. Japan market got wacked last night, and I’m thinking of loading up before the next trading session overseas.

    August 17, 2007 at 6:16 AM #76971
    Coronita
    Participant

    I think I’m going to load up on EWJ. Japan market got wacked last night, and I’m thinking of loading up before the next trading session overseas.

    August 17, 2007 at 6:16 AM #76997
    Coronita
    Participant

    I think I’m going to load up on EWJ. Japan market got wacked last night, and I’m thinking of loading up before the next trading session overseas.

    August 17, 2007 at 6:16 AM #76853
    GoUSC
    Participant

    I will make some money on one (~10% in 2 weeks) and lose around 1% on the other…I am going to sell the shorts at opening and buy a levered ETF that follows the DOW change but double. I think there will be a nice pop today.

    Fortunately this is all play money! 🙂

    August 17, 2007 at 6:16 AM #76974
    GoUSC
    Participant

    I will make some money on one (~10% in 2 weeks) and lose around 1% on the other…I am going to sell the shorts at opening and buy a levered ETF that follows the DOW change but double. I think there will be a nice pop today.

    Fortunately this is all play money! 🙂

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