Rate Hike in 2008? Whatever...

[jsp326]

Let's see...

1) Jobless claims skyrocketing. Tomorrow's NFP should be very ugly unless the numbers are heavily "massaged." The unemployment rate could be bad, too.

2) Dow down around 350 points today. At this rate, the Dow and S&P 500 could quickly hit their yearly lows from mid-July.

3) Fannie/Freddie bailout or another major U.S. bank failure is still possible.

And some are still talking about a rate hike in 2008? If things continue down this path, I'd say a Helicopter Ben rate-cut "rescue" is almost as likely

 

[nazzdack]

Fed Funds seem to be reflecting an easing-bias.

 

[polpolik]

Yeah, I don't see the Feds raising rates. This is all talk. Besides, inflation has been moderating and seeing that world economy is taking a sh*t, I doubt there will be much demand to hold up commodities.

 

[Daal]

Quote from nazzdack:

Fed Funds seem to be reflecting an easing-bias.

yeah I wouldn't be surprised to see easing start to be priced in if things keep getting bad, so far all those hikes expectations are being melted away. the commodity correction could also feed into the cpi's

 

[makloda]

How come we're not hearing from Jim Rogers recently on how the "Fed must hike immediately in order to avoid inflationary Armageddon"?

 

[PohPoh]

Quote from makloda:

How come we're not hearing from Jim Rogers recently on how the "Fed must hike immediately in order to avoid inflationary Armageddon"?

too busy unloading dollars on this rally