Fed cuts discount rate by 50 basis point.

[Coronita]

I think today will be the day that 'the Dow was up more than 300 points at one time, but finished down XXX'.

 

Lol.. I tend to agree. But maybe down XX. 

[GoUSC]

JES I think you are right. Again fundamentally this doesn’t change anything. People still don’t know who has their fingers in risky subprime or Alt-A debt, or have any idea of how levered it is. We shall see. I decided not to sell my short ETF’s. We’ll see if that was a wise move.

[GoUSC]

JES I think you are right. Again fundamentally this doesn’t change anything. People still don’t know who has their fingers in risky subprime or Alt-A debt, or have any idea of how levered it is. We shall see. I decided not to sell my short ETF’s. We’ll see if that was a wise move.

[GoUSC]

JES I think you are right. Again fundamentally this doesn’t change anything. People still don’t know who has their fingers in risky subprime or Alt-A debt, or have any idea of how levered it is. We shall see. I decided not to sell my short ETF’s. We’ll see if that was a wise move.

[one_muggle]

Calamity!
I agree with privatebanker.
From my vantage point the Fed injecting money, which I believe they haven’t done since 9/11, and now dropping the rate after hinting they were still fighting inflation, shows their nerves are rattled.
I think they were worried about runs on banks (and bank-like institutions).

Interesting article from a day ago showing that this rate cut was getting more likely: http://calculatedrisk.blogspot.com/2007/08/fed-funds-target-vs-effective-funds.html

Also, see what Poole said a while ago (aka 2 days ago):
“I don’t see any impact as yet on the real economy or on the inflation rate,” he said in an interview in the bank’s boardroom. “Obviously, there could be an impact, but we have to rely on some real evidence.”

Barring a “calamity,” there is no need to consider an emergency rate cut, Poole said. His comments were the first by a Fed official since the U.S. central bank joined counterparts in Europe and Asia to inject emergency funds after a surge in money- market rates. The Fed has added $71 billion of reserves in the past five trading days.

This Fed action feels more like a rescue helicopter that, rather than rescue you, drops a few months worth of food and some clothes for winter…

-one muggle

[one_muggle]

Calamity!
I agree with privatebanker.
From my vantage point the Fed injecting money, which I believe they haven’t done since 9/11, and now dropping the rate after hinting they were still fighting inflation, shows their nerves are rattled.
I think they were worried about runs on banks (and bank-like institutions).

Interesting article from a day ago showing that this rate cut was getting more likely: http://calculatedrisk.blogspot.com/2007/08/fed-funds-target-vs-effective-funds.html

Also, see what Poole said a while ago (aka 2 days ago):
“I don’t see any impact as yet on the real economy or on the inflation rate,” he said in an interview in the bank’s boardroom. “Obviously, there could be an impact, but we have to rely on some real evidence.”

Barring a “calamity,” there is no need to consider an emergency rate cut, Poole said. His comments were the first by a Fed official since the U.S. central bank joined counterparts in Europe and Asia to inject emergency funds after a surge in money- market rates. The Fed has added $71 billion of reserves in the past five trading days.

This Fed action feels more like a rescue helicopter that, rather than rescue you, drops a few months worth of food and some clothes for winter…

-one muggle

[one_muggle]

Calamity!
I agree with privatebanker.
From my vantage point the Fed injecting money, which I believe they haven’t done since 9/11, and now dropping the rate after hinting they were still fighting inflation, shows their nerves are rattled.
I think they were worried about runs on banks (and bank-like institutions).

Interesting article from a day ago showing that this rate cut was getting more likely: http://calculatedrisk.blogspot.com/2007/08/fed-funds-target-vs-effective-funds.html

Also, see what Poole said a while ago (aka 2 days ago):
“I don’t see any impact as yet on the real economy or on the inflation rate,” he said in an interview in the bank’s boardroom. “Obviously, there could be an impact, but we have to rely on some real evidence.”

Barring a “calamity,” there is no need to consider an emergency rate cut, Poole said. His comments were the first by a Fed official since the U.S. central bank joined counterparts in Europe and Asia to inject emergency funds after a surge in money- market rates. The Fed has added $71 billion of reserves in the past five trading days.

This Fed action feels more like a rescue helicopter that, rather than rescue you, drops a few months worth of food and some clothes for winter…

-one muggle

[GoUSC]

Market only up 65 now…They aren’t buying this.

[GoUSC]

Market only up 65 now…They aren’t buying this.

[GoUSC]

Market only up 65 now…They aren’t buying this.

[one_muggle]

yeah radelow, what do you put the odds for Monday if today’s Fed actions result in a DOWN market?

BTW I’m giving my financial friends a call over the weekend to get their story. Funny, but I haven’t been able to get a call into them in the past week or so. I hear they are kind of busy 8^@

-one muggle

[one_muggle]

yeah radelow, what do you put the odds for Monday if today’s Fed actions result in a DOWN market?

BTW I’m giving my financial friends a call over the weekend to get their story. Funny, but I haven’t been able to get a call into them in the past week or so. I hear they are kind of busy 8^@

-one muggle

[one_muggle]

yeah radelow, what do you put the odds for Monday if today’s Fed actions result in a DOWN market?

BTW I’m giving my financial friends a call over the weekend to get their story. Funny, but I haven’t been able to get a call into them in the past week or so. I hear they are kind of busy 8^@

-one muggle

[Coronita]

Back up to 100. It’s all over the place. Sold my positions and waiting for the next spill to buy back.

[Coronita]

Back up to 100. It’s all over the place. Sold my positions and waiting for the next spill to buy back.

[Author]

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