The Fed will CUT rates tomorrow morning.

[athlonmank8]

Quote from Spectre2007:

we are FOMC time clock now, all other considerations left by the roadside till the meeting is over.

Bond traders and China are calling the shots now.

FOMC means nothing anymore

 

[Spectre2007]

Quote from athlonmank8:

Bond traders and China are calling the shots now.

FOMC means nothing anymore

well if they want joe six pac to keep buying walmart goodies, he'll give joe six packs employer a nice christmas rally.

 

[athlonmank8]

Quote from Spectre2007:

well if they want joe six pac to keep buying walmart goodies, he'll give joe six packs employer a nice christmas rally.

Right. And Santa's real.

 

[jeffalvinson]

Quote from joemiami:

Housing isnt even close to bottoming...especially here in South Florida. Rate of foreclosures still accelerating down here. Timberrrrrrrrrrrrr !

Joe,

The summer of 2005 was the peak of the housing boom and it was also the peak sales of the sub-prime loans.
Most sub-prime loans have a life of 5 years.
Summer of 2005 to the Summer of 2010 is 5 years.
Housing will start recovering in mid 2010.

Jeff

 

[IluvVol]

Quote from capmac:

That's right folks, can't let this market tank for than a few percent...




So those who are short, be careful.

Why would the Fed act today? Sorry I did not follow your logic? Oh, I get it, because the Dow went down few hundred points and now some small wanna-be-Tudors, such as you, need to be bailed out? Guess you slightly misunderstood the function of the Fed. Here we go....http://www.federalreserve.gov/

 

[crgarcia]

Quote from IluvVol:

Why would the Fed act today? Sorry I did not follow your logic? Oh, I get it, because the Dow went down few hundred points and now some small wanna-be-Tudors, such as you, need to be bailed out? Guess you slightly misunderstood the function of the Fed. Here we go....http://www.federalreserve.gov/

Finally some common sense here at ET.

 

[Ivanovich]

Quote from IluvVol:

Why would the Fed act today? Sorry I did not follow your logic? Oh, I get it, because the Dow went down few hundred points and now some small wanna-be-Tudors, such as you, need to be bailed out? Guess you slightly misunderstood the function of the Fed. Here we go....http://www.federalreserve.gov/

Perhaps you missed the last month or so. Bailing out the markets is exactly what the Fed did, regardless of what the function of the Fed was supposed to be.

 

[IluvVol]

Quote from Ivanovich:

Perhaps you missed the last month or so. Bailing out the markets is exactly what the Fed did, regardless of what the function of the Fed was supposed to be.

I really do think you misunderstand. Nobody bailed out the market. The Fed could not care less where the market is trading. Maybe your favorite newscasters on CNBC like to spin it as such but nothing could lie farther from the truth. Fact is the Fed has not lowered interest rates much earlier because inflation was a persistent threat. This threat has drecreased by much, so much that the threat comment even disappeared in the same wording it was in the Fed notes before. The Fed is concerned with the overall economy and not whether the Dow traded down 2000 points. If more subprime issues surface (which they will I am sure) and there will be more pain in the housing market then this is of concern to the Fed, BUT NOT that some equity index is showing more than usual volatility. I hope you get it the second time around. Of course market corrections to the downside are somewhat correlated with issues in the real economy but this was not the question.

 

[myminitrading]

Quote from MKTrader:

Future news story:

After a severe 0.4% sell off in the Dow yesterday, the Fed cut rates for the 16th time this year. The rate now stands at
-12.5%. No one has figured out what a negative rate is supposed to mean yet. All of the cuts haven't helped housing. Mortgage rates continue to rise as do foreclosues.

While Bernanke & Co. say that high oil prices and the falling Dollar aren't their concern, they did acknowlege oil reaching $180/barrel yesterday, as well as the EURUSD rate of 2.1450.

"We may have to stop cutting at some point, but for now, we'll intervene to help the markets at a moment's notice."

Stocks rallied on the news, as traders once again are holding out for more cuts. Trader Nazzy Deck noted, "The worst of the housing and sub-prime crises are behind us. They have to be, or we'll soon see negative numbers for home sales and new starts, and that's impossible. The economy is strong, no matter what the indicators say."

You no thats nor so far fetched, central bankers own financial press