Is it just me, or is the .50 drop BAD for the econ?

[Tracy McGreedy]

Bernanke is cutting because there is precedence during the Greenspan era. Looks like inflation is only a fear when the fed needs excuse to raise rates. When they need to bailout, suddenly there is no inflation. Greenspan wants us to believe that they could ease after 2001 because we were in a deflationary period. But that's all in hindsight. He is full of shit.

THE FED CONVENIENTLY MODIFIES THEIR STANCE ON INFLATION TO JUSTIFY THEIR BULLSHIT.

 

[empee]

i think the FED knows exactly what their doing. Thats the sad part.

 

[Div_Arb]

Buh-buh-Benny and the cutss. Didn't Biz Markie do a rendition of this?

 

[trefoil]

Really, I get tired of this constant, unceasing bs on here.
Today, we heard from S&P that a wave of corporate defaults because of this credit squeeze is in the offing.
So, which of you fine economists is going to argue that it's all about subprime, and has nothing to do with the real economy?
In the UK, recriminations are flying around Mervyn King for having to do an about-face just days after his idiocy about moral hazard.
Which of you anti-American scum are going to say this is all about the US and the USD? I can guess, given your past sterling records.
That's a pun, since none of you has the IQ to realize it.

 

[OldTrader]

Quote from Jayford:

Drop by .50, both fed funds and discount. What does that do other than ignight a happy, but short, rally.

Inflation? Hell Yes!

Interest rates?
Well, if the $ drops enough, long term rates rise by definition. Guess what is happening?

Curious to hear from REAL economists, or long term traders. I personally think this was a move to prop Wall St. short term.

Gonna make matters far worse down the road.

Guys, if you know me, I have multiple Econ degrees, and I'm an old guy, but this just baffles me. All opinions welcome, hazing is just a waste of time.

Cheers,

Jay

What does it do? It lowers the base rate for all those adjustables that are about to reset. So it may help a few of those homeowners who are now in trouble, or about to be in trouble.

OldTrader

 

[maxpi]

Quote from trefoil:

Really, I get tired of this constant, unceasing bs on here.
Today, we heard from S&P that a wave of corporate defaults because of this credit squeeze is in the offing.
So, which of you fine economists is going to argue that it's all about subprime, and has nothing to do with the real economy?
In the UK, recriminations are flying around Mervyn King for having to do an about-face just days after his idiocy about moral hazard.
Which of you anti-American scum are going to say this is all about the US and the USD? I can guess, given your past sterling records.
That's a pun, since none of you has the IQ to realize it.

Agreed, Bernanke is a Bush appointee so the liberal mantra must be "get that son of a B anywhere you can". I remember the "get Newt" days, then it was "Hate Bush", etc. there's no end to it... Oh and the economy sucks will be another repeated load of vomit from those idiots right up to the elections ... Personally, I'm making 6 figures, the economy seems fine to me and I know how to use the ignore button

 

[dtan1e]

Quote from maxpi:

Agreed, Bernanke is a Bush appointee so the liberal mantra must be "get that son of a B anywhere you can". I remember the "get Newt" days, then it was "Hate Bush", etc. there's no end to it... Oh and the economy sucks will be another repeated load of vomit from those idiots right up to the elections ... Personally, I'm making 6 figures, the economy seems fine to me and I know how to use the ignore button

come to think of it, doesn't Ben and Bush talk the same way ?

 

[Avid_Consumer]

Quote from trefoil:

Really, I get tired of this constant, unceasing bs on here.
Today, we heard from S&P that a wave of corporate defaults because of this credit squeeze is in the offing.
So, which of you fine economists is going to argue that it's all about subprime, and has nothing to do with the real economy?
In the UK, recriminations are flying around Mervyn King for having to do an about-face just days after his idiocy about moral hazard.
Which of you anti-American scum are going to say this is all about the US and the USD? I can guess, given your past sterling records.
That's a pun, since none of you has the IQ to realize it.

what a retarded pun.. you actually feel clever for saying that?

perpetuating controlled inflation and easing the credit contagion's effects on the real economy aren't mutually exclusive. it was just one cut, but there's a lot of fair concern that he will dig us deeper into unsustainability rather than dig us out

it looks aggressively inflationary with all the price precedents taking place, and why should a 'wave of corporate defaults' be prevented if they're defaulting for excessive dependency on leverage? facilitating a permanent status quo of excess leverage can be construed as 'anti-american' too. that's practically the definition of moral hazard, and bernanke's 'great moderation' seems to increasingly require dollar devaluation

if you disagree, think he knows better than the ET crowd, etc, why don't you stimulate the dialog with arguments instead of just scattering your own anecdotal shit as if it's better than anyone elses

 

[Avid_Consumer]

Quote from maxpi:

Agreed, Bernanke is a Bush appointee so the liberal mantra must be "get that son of a B anywhere you can". I remember the "get Newt" days, then it was "Hate Bush", etc. there's no end to it... Oh and the economy sucks will be another repeated load of vomit from those idiots right up to the elections ... Personally, I'm making 6 figures, the economy seems fine to me and I know how to use the ignore button

myopic fiscal and monetary policies have created a substantial problem for the country. bush isn't the only one, but he ranks among the worst in terms of exacerbating the problem. and that's not a liberal pov by a long shot... actual conservatives understand this

even freaking rush limbaugh thinks kennedy was more of a fiscal conservative. where's your loyalty - your party or your country?

 

[econdude]

howdy all, I'm a 4th year BSc Hon Econ student and full time daytrader.
I was very surprised by the 1/2 pt reductions, i was in the 1/4pt camp with a possible hint for another 1/4 next time around if situations hadnt resolved. 1/2 pt reduction seems like a quick fix for the markets but long run not sure how well this is going to effect the economy as a whole. USD is getting crushed, inflation targets have obviously been temporairly been hanging and its not like this alone is going to fix the credit issue. The next set of economic numbers that are going to come out over the next few weeks will definitely have a significant impact on market direction. I cant say im all that excited about long run market conditions as of right now.