Fed cut Monday or Tuesday

[thecalip]

Quote from myminitrading:

If everyone expects the fed to run to the rescue everytime the markets has a small correction, then do we rally have FREE MARKETS?

Hell no we don't have free markets their only free when they are rising.

When they fall everyone crys for help, it's so fake!

Exactly. The Fed is not create to help stock market to make new high every week. The purpose of the Fed is to create stability of the economy. The credit crunch is created by the financial firms, and they need to take responsibility to clean it up. If the Fed just give them what they want, there will be no order. They know whatever they do, someone will going to bail them out.

 

[nitro]

Quote from kashirin:

that's nice your not representing FED
with you we would already had 0% interest rate and 100% inflation

I have no idea what you are talking about. I claim all the FED should do today is go to a 100% neutral stance, where it makes clear, that if the credit woes intensify, it will act.

How is that going to zero % ? It holds rates steady, and recognizes the problem and tells traders to go about their business and that the world is not comming to an end.

nitro

 

[nitro]

Quote from newbunch:

I disagree. But first I should say that I doubt that the Fed will ease. But if it does ease, I expect the market to shoot up at first and then plunge. An ease would signal to the market that the Fed thinks things are worse than they appear.

Be my guest and sell SIFs on an ease then and see what happens to you.

All markets oscillate on a schock. That it will be volatile is an understatement.

nitro

 

[kashirin]

Quote from Pa(b)st Prime:



For starters , yes the curve is quasi inverted. EVERYTHING, from 3mo Bills to the Thirty Year sits below the Funds rate. You speak of those lofty Bond yields last month. Well big deal. Soaring global stock and commodity prices zoomed the Bond all the way to parity with overnights. Not exactly 1981 type stuff.

I don't really see why you mention Fed rate and compare it to bond yields
Fed rate is higher for quite a long time and it wasn't big concern till now
and inverted curve is when short term bonds pay more than long term and it's not inverted now

 

[scorpion]

we will probably end down today, fed will dissappoint,, just a guess, lets see?

 

[scorpion]

just noticed the release.. , big down day... imo

 

[AAAintheBeltway]

Quote from kashirin:

...

By the way yield curve is not inverted either

Daily Treasury Yield Curve Rates
Get e-mail updates when this information changes.


--------------------------------------------------------------------------------

Historical Data
This data is also available in XML format by clicking on the XML icon

August 2007
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
08/01/07 5.05 4.89 4.96 4.82 4.56 4.53 4.60 4.66 4.76 4.99 4.90
08/02/07 5.02 4.89 4.95 4.83 4.59 4.57 4.62 4.68 4.77 5.00 4.91
08/03/07 4.94 4.85 4.91 4.76 4.46 4.45 4.52 4.59 4.71 4.96 4.87
08/06/07 4.92 4.88 4.92 4.76 4.46 4.45 4.52 4.60 4.72 4.98 4.89
08/07/07 5.05 4.94 4.98 4.84 4.56 4.55 4.60 4.66 4.77 5.01 4.92


http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml

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I call this an inverted yield curve.

 

[kashirin]

What I see 2 year pay less than 10 years and 10 years pay less than 30 years so yield is not inverted

 

[Pa(b)st Prime]

Quote from kashirin:

What I see 2 year pay less than 10 years and 10 years pay less than 30 years so yield is not inverted

The Lehman Treasury Index is a 5 year duration. 2's are inverted to 5's.

The world cares little about the long end of the curve. 90% of the long bonds in circulation are stripped into zero's.

 

[kashirin]

Quote from Pa(b)st Prime:

The Lehman Treasury Index is a 5 year duration. 2's are inverted to 5's.

The world cares little about the long end of the curve. 90% of the long bonds in circulation are stripped into zero's.

according to the chart above 2 y is 4.56 and 5-y is 4.6
what's inverted?