There will be no Fed rate cut

Will the Fed cut rates next week?

  • Yes they will cut

    Votes: 148 59.7%

  • No they won't cut

    Votes: 100 40.3%
  • Total voters
    248
LOL!

http://www.msnbc.msn.com/id/20591430/site/newsweek/

Million-Dollar Man March
In the largest chauffeur-driven protest in Washington's history, hedge-fund managers take to the streets.

Updated: 4:53 p.m. ET Sept 4, 2007
Sept. 4, 2007 - Demanding further intervention from the Federal Reserve to protect their endangered fortunes, thousands of the nation’s leading hedge-fund managers marched on Washington today.

Dubbed “The Million Mercedes March,” the protest was said to be the largest chauffeur-driven demonstration in the capital’s history.

Limousines started jamming the streets of Washington at approximately 10 a.m., as irate hedge-fund owners converged in front of the Federal Reserve building to demand stronger action to protect their imperiled riches.

Chanting “No rate cut, no peace!” the furious money managers were pepper-sprayed by police as their protest threatened to take a violent turn.

Tracy Klujian, a hedge-fund manager from Greenwich, Conn., said that simmering anger in the hedge-fund community was “a powder keg” waiting to explode. “We have yet to see the ripple effects of this crisis,” Klujian said. “When these guys have to freeze their trophy wives’ shopping allowances, there’s going to be hell to pay.”

Klujian’s words seemed almost prophetic as a mob of angry trophy wives looted a Ralph Lauren boutique in East Hampton, N.Y., later in the day, stripping the establishment of its entire fall collection.

If the Fed fails to intervene, Klujian warned, an ugly situation among the nation’s wealthiest money managers will only get uglier. “A lot of these guys are mad as hell right now,” he said. “But wait until they’re down to their last billion.”

Elsewhere, FEMA announced that it would commemorate the second anniversary of Hurricane Katrina by returning phone calls from 2005.
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Quote from Pa(b)st Prime:

.50 is a guess though and last Friday when March/08 was forecasting more than 100 by spring, a complete freakin' joke.
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at least I made some money on this one.
 
Can a lot of money be made trading fed fund futures? I'd like to learn more about this contract - any good places to start?
I'd like to take the other side of a 100 basis point cut by March 08 expectation.
 
Quote from aeliodon:

Can a lot of money be made trading fed fund futures? I'd like to learn more about this contract - any good places to start?
I'd like to take the other side of a 100 basis point cut by March 08 expectation.
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well certainly a lot of money can be lost if you use common sense and the markets behave like they did recently. :D
start on cbot website - you should find there everything.

if you like it depends partly on your nature - you can achieve almost the same results with trading eurodollars (1 FF = 5/3 ED). fed funds are just a little bit cleaner (no credit risk) when you want to trade (and time) macroeconomic decisions. The volatility is about the same as ED - the liquidity is much much worse. usually only the first 2 coming meetings can be easily traded. however when the fed becomes fashionable (like nowadays - you notice it by number of threads on ET) you can trade out to 6 month forward with reasonable bid/offers - still very poor in comparison to ED.
 
good point - i was thinking about it too especially given that he has a breakfast with ben every week and it seems they are on good terms.
the only drawback is that Paulson is not sitting on FOMC...
 
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