Fed cuts discount rate by 50 basis point.

[Coronita]

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.

[GoUSC]

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

[GoUSC]

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

[GoUSC]

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

[Coronita]

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”.

[Coronita]

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”.

[Coronita]

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”.

[HereWeGo]

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

[HereWeGo]

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

[HereWeGo]

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

[Coronita]

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.

[Coronita]

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.

[Coronita]

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.

[GoUSC]

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! 🙂

[GoUSC]

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! 🙂

[Author]

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