A few more hours till ROFLMAO week!

Quote from The Kin2:

Interesting. Let's assume that's the case. The dollar and inflation be dammed. The only issue would be to calm equity and credit markets. It would be especially unwise not to cut when the market is certain of .25 cut and even hinting at a .50 cut.
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Thats a good argument.

On the other hand, a hold accompanied with soothing fed language could invoke confidence in the dollar and its underlying assets, offsetting the negative effect you propose [for the credit markets].

Also realize that the mkt predicted almost 0% chance of cut just 10 days ago. The markets are fickle. In another 10 days after no cut, the markets will probably be just as unpredictable. So what has fundamentally changed in 10 days? [besides a big Merrill Lynch[mob] writedown]
 
^ Good points. We'll just have to wait and see. This week will be interesting!

I personally believe Bernanke will cut. They don't call him Helicopter Ben for nothing. Futures is also predicting a rate cut. However oil would test $100 and the dollar would be in freefall.

A .25 or .50 cut might do far more damage than good. And that might be at the back of his mind.

As I said before, this is the ROFLMAO week. Will Bernanke do the right thing??

Happy Trading.
 
Here's a preview of the upcoming Fed meeting this week.......

Bernanke to Fed Governors: "I make the rules, Fed Governors. The news, war, peace, famine, upheaval, the price per paper clip. I pick that rabbit out of the hat while everybody sits out there wondering how the hell I did it. Now you're not naive enough to think we're living in a democracy, are you Fed Governors? It's the free market. And you're a part of it. You've got that killer instinct. Stick around Fed Governors, I've still got a lot to teach you."
 
I just hope this week is another roller coaster scalping week with big swings both ways.

The ROFLMAO time will come when rates are slashed so much, it won't cause spikes in equities. You wish it could be so easy to just bet long when a cut is looming.

Shit, slash them down to 3% and next year sometime there will be an emergency rate hike overnight catching everyone off guard.
 
Interesting week ahead, YES!!

Read about a CNBC poll recently that was asking a simple question of John & Jane Public...Is the USA in a recession? The results were 46% yes; 52% no... I would think that the fed watches these numbers as well as their own, just to get a feel of "the little guy". the Fed is reactive not proactive from everything I read and see.

Hey, Baron how about when issues like this arise we run an "office pool"? $10 buyin using Google Cash or Paypal...It would make it even more interesting!
 
Quote from The Kin2:

I expect a major selloff in the dollar and decent increases in crude to kick off the festivities. Who knows what excitement will come next.
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ROFLMAO week is underway.
 
Quote from Spectre2007:

The FED has more data and the best people crunching numbers that money can buy.

So thinking you know how FED policy should be enacted is a little presumptuous.

The market itself is forecasting FED policy in terms of bond rates, bond rates are at close to all time lows, which implies confidence in FED policy.
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Then what's their problem? Do they do these calculations in Yen, or Euro instead of USD?

I guess that explains the kind of murder the dollar has been seeing.
 
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