how many hours until fed cuts?

Quote from AAAintheBeltway:

Silk has been around the block and knows his stuff. He is right, a rate cut is crucial now. It's not a matter of bailing out the stock market. The credit markets, which are far more important, have stopped functioning. If you don't understand what I'm saying, look up the rates on jumbo mortgages. Basically, lenders don't want to loan money because they know they can't pass the paper on. How long before it hits the rest of the credit markets? It's happening now.

What you will see is basically any sector that depends on securitizing consumer loans go out of business. Housing, autos, retail, even student loans. Should make a nice backdrop for the '08 elections.
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fed cuts won't cause any change in the credit spreads (which are impacting the mortage market). Why? The fed has already flooded the markets with $$$ - we are already at 4.51 overnight !!!

The only thing that can save the market (if it needs saving as you say) is a govt program to start buying mortgagebacks and/or guaranteeing lesser quality debt.

Otherwise, this is a correction, and sanity will prevail, probably by next week.

Lets hope for 1550 by options expiration September !!!!
 
<i>"The only thing that can save the market (if it needs saving as you say) is a govt program to start buying mortgagebacks and/or guaranteeing lesser quality debt."</i>

Who pays for that? Does it come off the top of our next war budget for Irag/Afghan fiasco?

<i>Otherwise, this is a correction, and sanity will prevail, probably by next week. Lets hope for 1550 by options expiration September !!!!</i>

Would that be September 2008 or 2009?
 
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