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I can see fed cutting rates next week
- Thread starter silk
- Start date
My old man served on the board of the bank of Canada (Canadian version of the fed) and watched Gerald Bouey agonize over rate increases, when he had to jack them to 18% in the 1970's the Fed should be capable of understanding that if they do drop rates they willl be well on their way to this scenario. It ruined alot of people, imagine being put in the position where you got to choose that that is the best out.
Cramer is pleading right now to drop the rates and claiming veterans of the market are on his side, when its at like 5.5% this is a total fucking joke, that is still lowrr than average and he is also implying that the people who lead the central banks have no sympathy, can you imagine the agony they went through in 1970 to hike interest rates like that?? The bottom line is bernanke should, (if he is intelligent)realize the amount of people who will lose their homes at 6.5% or whatever it is in the states right now, and should know if he was tko cut rates right now it will once again lead to an 18% interest rate, WHICH WILL SLAUGHTER THE MARKET, once in a while you have to bite the bulllet, no rate drop coming any time soon in my opinion.
No chance of a rate cut, short the market into the next fed decision.
Cramer is pleading right now to drop the rates and claiming veterans of the market are on his side, when its at like 5.5% this is a total fucking joke, that is still lowrr than average and he is also implying that the people who lead the central banks have no sympathy, can you imagine the agony they went through in 1970 to hike interest rates like that?? The bottom line is bernanke should, (if he is intelligent)realize the amount of people who will lose their homes at 6.5% or whatever it is in the states right now, and should know if he was tko cut rates right now it will once again lead to an 18% interest rate, WHICH WILL SLAUGHTER THE MARKET, once in a while you have to bite the bulllet, no rate drop coming any time soon in my opinion.
No chance of a rate cut, short the market into the next fed decision.
Only one person to blame but Greenspan he single-handedly f***ed the market by flooding the market with $$$$$$$$$$$$$$$$
Remember M3 reporting...once Greenspan requested printing presses to run 24x7 they decided better not report the increase in money supply (M3)
Real inflation is running at double-digit levels, while reported inflation is <3% (providing you don't eat or use any energy).
If fed cuts rates then just more fuel on the fire......unfortunately the economy has to rein in spending. US economy CAN NOT continue to run twin deficits in perpetuity.
Remember M3 reporting...once Greenspan requested printing presses to run 24x7 they decided better not report the increase in money supply (M3)
Real inflation is running at double-digit levels, while reported inflation is <3% (providing you don't eat or use any energy).
If fed cuts rates then just more fuel on the fire......unfortunately the economy has to rein in spending. US economy CAN NOT continue to run twin deficits in perpetuity.
Quote from drsteph:
Fed may cut if S&P blows through longer term support by 1380-1400ish. Freefall may ensue. Don't underestimate the possibility of ECB to do a simultaneous rate cut to allow for interest rate differentials between US/Europe to remain the same and avoid a 'contagion'.
I doubt the Fed will wait for a meeting to cut if there is serious liquidity issues. BTW, from market actions, don't think it went well in China for Paulson.
the fed does not care about the dollar. paulson's friends at goldman are heavily short the dollar. the fed will cut rates and
there will be a knee jerk reaction from the market forcing shorts to cover. congress and
the states will come to rescue of subprime borrowers.
the party will continue for awhile.
inflation will take over. the printing presses will work overtime to pay off government obligations
this is bush's legacy.
Any more questions???
Quote from dwl603:
people say shit like this all the time, but anyone with a half a bran can
a)predict the feds move (somewhat)
and
b)predict what the market anticipates(100%)
You know how much money is involved in this? Saying "i only react" is stupid when the market prices things illogically, heading into this statement.
Worst case you get it wrong and lose a bit but if you are knowledgeable you can make a killing off of these.
and the funny thing is all i am is a trader, i will not hold stuff over night but it does not take a genius to recognize the fact that making money on a fed statement is easy.
I will tell you what, in advance i alreay know the markets will most likely sell off since the market is anticipating a cut, which is totally irrational, and they will panick when it doesnt come. Now go out and make some money off this, its 5 easy points right off the announcement, then most likely a rally to "TRY" to come back then a sell off. What is the best case for the bulls, a cut which was expected?? LOL, this game is not tough people only make it out to be.
And you know what?? worst case scenario i am wrong and i will make money off of it anyways with tight stops, and volatility.
Who si the dumb ass now?? please be a man and admit i just absolutely owned you.
Quote from rhymeswithorang:
Priceless,
DWL603 says "but anyone with a half a bran (sp) can a)predict the feds move (somewhat)"
"I will tell you what, in advance i alreay know the markets will most likely sell off since the market is anticipating a cut,"
There is a zero % probability priced into a rate cut next week.
Dumbass
Quote from dwl603:
Who si the dumb ass now?? please be a man and admit i just absolutely owned you.
Bernanke is.
Time to teach this pisher a lesson about real estate liquidation. Next up - smaller size loan commercial meltdown.
Fine with those of us who take people's homes away - he called the play.
if i wasnt stopped out before the decision id sell this it just gave away a second chance.