If the Fed drops interest rates >= 50 bp and the market jumps up, I will be in a foul mood. I will come on AF and tell anyone who applauds that decision and thinks this is a fine buying opportunity that they are stupid. Then I will be cranky for the rest of the evening. Let’s everyone try to avoid that. If you have friends who are Fed governors, please tell them that this is BS. If they do it anyway, keep selling your stocks. Thank-you for your kind understanding.
No billion-dollar smile like on that CFA newsletter?
Big in-the-red pouty frown.
25 bp is priced in. 50 is what is being speculated now.
I vote for a cut. I think it would be quite entertaining to see you in a foul mood. Plus we don’t want the dollar to recover too quickly. Do we? My apologies for not kindly understanding.
Over night rates jumped to 6% as you know. The problem is there is shortage of money to borrow. Fed pumped another 50B today. So the fix is to pump a zillion dollars into the market, not lower rates.
Joey, can you refresh the board what happened in Japan during the 90s? It seems like the USA is following suit.
ditchdigger2CFA Wrote: ------------------------------------------------------- > Joey, can you refresh the board what happened in > Japan during the 90s? > > It seems like the USA is following suit. No way USA is that close to Japan… at least I hope not…
Why would you be in a foul mood if that occur? Have you seen the financial markets lately. There are a lot of jobs and invested assets at stake. What’s going to happen in the next couple of weeks will have tremendous ramifications for the foreseeable future. Saying that the financial markets is “unstable” right now is a big understatement. ANY positive news is welcome. I, for one, will be cheering if such an scenario unfold. I dont know about you, but I have a lot of very nervous friends in this industry right now.
what time does the meeting happen?
JoeyDVivre Wrote: ------------------------------------------------------- > If the Fed drops interest rates >= 50 bp and the > market jumps up, I will be in a foul mood. I will > come on AF and tell anyone who applauds that > decision and thinks this is a fine buying > opportunity that they are stupid. Then I will be > cranky for the rest of the evening. Let’s > everyone try to avoid that. If you have friends > who are Fed governors, please tell them that this > is BS. If they do it anyway, keep selling your > stocks. > > Thank-you for your kind understanding. Hey, it could equate to more funding on the construction deal I’m working on so I’ll take it with open arms! Will not cut my short SPY position though…
2:15 pm
swtxlady Wrote: ------------------------------------------------------- > Why would you be in a foul mood if that occur? > Have you seen the financial markets lately. There > are a lot of jobs and invested assets at stake. > What’s going to happen in the next couple of weeks > will have tremendous ramifications for the > foreseeable future. Saying that the financial > markets is “unstable” right now is a big > understatement. > > > ANY positive news is welcome. I, for one, will be > cheering if such an scenario unfold. I dont know > about you, but I have a lot of very nervous > friends in this industry right now. Because it’s not good news for the overall economy i.e. inflation AND it’s not good when the Fed spurs financial market speculation.
When was the last time a rate decrease was considered bad news for the overall economy? spur financial markets? every one is deleveraging… I doubt a rate increase will change that
I’d be pissed if they lowered rate at all.
swtxlady Wrote: ------------------------------------------------------- > When was the last time a rate decrease was > considered bad news for the overall economy? > > spur financial markets? every one is > deleveraging… I doubt a rate increase will > change that Have you ever heard of stagflation? A rate decrease while we have high inflation (I mean year-over-year, not the recent CPI report) and projected flat growth, that kills consumer purchasing power. And what drives the US economy? That’s right, consumers. That’s why we don’t need a rate decrease.
And what happens if a shock to oil supply occurs, such as hurricane that actually affects supply? Then we’ll have even higher inflation and maybe even negative growth. Tell me that’s good combined with a rate decrease.
I think the fed is smarter than a rate decrease
no change - - - now you can have a beer instead of a bad mood… cool
lol. these bazoodles have been underwriting markets in the garb of ‘financial stability’ for a year now. the finally grew a pair this weekend, now are weak knee’d once more 2 days later. they will drop their pants again today. the market will say ‘yahoo’ for 2 days. then everyone will realize that a rate cut does not equal recovery of impaired asset values, and suffer the same fate anyway. we’ll find out in 30 seconds