Tuesdays rate cut

[The Kin]

Quote from nitro:

.50 is 100%
.75 is likely, say 80% chance.
1.00, don't be surprised probably 65% chance.
1.25 probably less than 50% chance.

I think the FED should lower the Interest Rate to zero at this point. I am not joking. The only caveat is the language should say that 1.25% of that cut to zero will be taken back in a month.

nitro

295% :-D kj


I agree with your numbers. ,

 

[flyingiguana]

Quote from nitro:

Perhaps. But I tend to disagree.

The argument against is that cutting rates doesn't address the real issue at the heart of the current financial crisis. But it will definitely put a bottom on those financial stocks like C JPM AXP etc that are so critical to the stock market, even if we lose 1270 SPX support.

IMO we are at a very important inflection point. If we lose 1270 SPX without aggressive FED action, my guess is we land somewhere in the 1175 to 1200 SPX area. Pick your poison.

nitro

pumping more liquidity into a liquidity bubble isn't going to solve anything

 

[nitro]

Quote from flyingiguana:

pumping more liquidity into a liquidity bubble isn't going to solve anything

Your play on words is clever, but not substantial. In fact, the liquidity bubble has imploded, and it is the other side of the coin we are faced with now. That is not even debatable and I have cold hard evidence to support it.

Your language is lagging the market reality by months.

nitro

 

[maxpi]

Quote from Trendytrader:

Beware a low dollar will be highly inflationary.

We had a strong dollar and inflation in the 70's [think Carter years], weak dollar in the 80's and low inflation [Reagan].