Huge interest rate cut
 

European indexes went green for about 10 min.
Dax is now down-140and falling faster than I can type , If Ben had cut 25 or 50 it would have been seen as a calm sensible move.
My bet is the 75 cut shows FEAR and the markets realize it.

http://biz.yahoo.com/ap/080122/fed_interest_rates.html


BAC - RAISES CREDIT CARD INTEREST!
They want you off their balance sheet. If you have a fixed rate card with them, you shouldn't worry about it. They must allow you to repay the balance at the previously agreed upon rate. If you had a variable rate card, well...

http://business.smh.com.au/shares-su...0116-1mdh.html


http://www.foxbusiness.com/markets/i...389894_18.html

Re: Huge interest rate cut
 

Regarding the stock market, as long as you're 5 years out it's a great time to buy. We may lose another 5-10%, who knows, but you can buy on sale right now. The stock market is weird - in stores when items go on sale people rush in to buy - but when the stock market goes on sale, people rush in to sell. Werid, weird, weird.

Re: Huge interest rate cut
 

You should read this :

http://www.usatoday.com/money/econom...arallels_N.htm



I am not predicting a Japanese style problem, but we better pick up the pace of transparency so that our banks and capital markets can begin functioning properly. To claim it can not happen here is naive. Rate cuts and some fiscal stimulus are not going to solve the problem.



When it is all out in the open it will be plain to see that we are in far worse shape than Japan ever was.
At least the Japanese had savings to fall back on. In the US we consider someone to be doing quite well if they aren't in debt, even if they have little of no savings.

Re: Huge interest rate cut
 

wait, i thought there wasn't a recession coming...

this pretty much slams that lid shut.... even the Fed knows one is looming, if not arrived already...

desperate measure.... putting a band-aid on a gaping wound...

Re: Huge interest rate cut
 

The chance of a recession has increased due to this move being somewhat belated but it's still unlikely IMO.

Regarding Japan, even if there's a "deep and long recession" this is still a solid low point for the stock market - worst case in 10 years, you buy 1/3 to the bottom and could have bought at a better time but it's still a good time to buy.

Re: Huge interest rate cut
 

Anyone but me ever notice how much the moonbats ****** and moan at the state of the economy and then how much they ****** and moan when someone tries to do something about it..?

Re: Huge interest rate cut
 

The claim that our banking system has been transparent and aggressive about taking write downs is just silly. We still have Billions buried on off balance sheet vehicles and are kidding ourselves with Billions of CDS that they claiming have mitigated risk.
The Japanese banks might have been hiding a lot of bad loans, but at least they probably didn't have a sh_it load of Level 3 *cough* "assets".
We will see in the next 6 months what the banks will do. They have puked 150 billion so far. Thats a big number. Lots more puking to be done. We will see over the next few quarters.

I think the FED will force the puking through the SEC so we don't end up like Japan. The more I read the more I am thinking we might get through this quicker then previously thought. Its going to be one hell of a slaughter when it happens.

Re: Huge interest rate cut
 

Our economy is a mess. Not only have we cut interest rates, which will probably lead to more inflation, we're preparing to take another $150 billion in debt to try to ignite the economy. The dramatic steps being taken show that the likelihood of a recession is very strong.

Re: Huge interest rate cut
 

[IMG]http://www.underconsideration.com/speakup/archives/WeAre****ed.jpg[/IMG]

Re: Huge interest rate cut
 

Here in Maine,the economy sucks even when the country is doing well.I can see from experiance that the rest of the US is starting to look like the typical Maine economy.......Brace yourselves.........:D