Big rate cut proping up markets

[The Kin]

We're now expecting a 1 to 1.25% cut in the fed funds rate. I think Bernanke will go a step further and count 1.50%.

Maybe that's enough why we're seeing this rally.

 

[S2007S]

kin I hope they lower them to 0% so we can now just move on, enough of these .25,.50 and .75 rate cuts, just drop them to 0% and make everyone happy, no need to drop them slowly when we all know they will drop them to 0% over the next 2 years to keep the economy and market propped up. So all in favor of 0% please stand up....

 

[Avid_Consumer]

fed and banks should cut to zero and turn out the lights on their way out. we don't need either one

 

[S2007S]

Quote from Avid_Consumer:

fed and banks should cut to zero and turn out the lights on their way out. we don't need either one

agree. 0%....forget about what happens, come back in a few years and hope everything took care of itself.....

 

[orange_trad]

Quote from S2007S:

kin I hope they lower them to 0% so we can now just move on, enough of these .25,.50 and .75 rate cuts, just drop them to 0% and make everyone happy, no need to drop them slowly when we all know they will drop them to 0% over the next 2 years to keep the economy and market propped up. So all in favor of 0% please stand up....

You're presuming that rates can go only to 0%. Watching the Fed throwing money at Wall Street like they have the past few months, I'd say they will introduce a "Wall Street big bank borrowing facility" or WS-BBB-FU at -10%, just to keep the liquidity. Retailers will of course be paying the counter-WS-BBB-FU rate of 20%. Just a vision...