[roccman]

Goodbye dollar ...hello gold!!!!

yippy kay ah kay oh mo fo!!!!

$this->bbcode_second_pass_quote('', 'B')y Brian Blackstone and Henry J. Pulizzi
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The Federal Reserve on Tuesday began its first easing cycle in more than four years with an aggressive half-point reduction in the federal funds rate to combat the effects of a housing recession and credit crunch on the broader economy.
Their willingness to move aggressively despite scant evidence of a sharp slowdown could fuel hopes for many more rate reductions down the road.
The Federal Open Market Committee voted unanimously to cut the fed funds rate, the rate at which banks lend to each other, to 4.75% from 5.25%. It had stood at 5.25% for more than one year.

[joewp]

{thread merged by emersonbiggins}

Just announced, the Fed has cut both lending rates by 50 basis points.

Look for the price of everything to go way, way up!

Edit: To add a link.

Isn't his nickname "Helicopter Ben"?

$this->bbcode_second_pass_quote('', '
')The Federal Reserve slashed the benchmark federal funds rate by a half-percentage point in a bold bid to buffer the economy from a housing slump and related financial market turbulence.

Stocks immediately rallied on the moves, which were more aggressive than many investors had expected.

The decision by the central bank's Federal Open Market Committee took the overnight rate down to 4.75%, its lowest level since May of last year. It was the first cut in the interbank rate -- the Fed's main tool to influence the economy -- since June 2003 and the first half-point reduction since November 2002.

Financial markets had widely expected the Fed to lower overnight borrowing costs, but were split over whether the move would be a quarter-point or more-aggressive half-point.

In a related move, the Fed also lowered the discount rate it charges for direct loans to banks by a half-point to 5.25%.

[emersonbiggins]

All right, we've entered the next phase. What are the implications, besides a massive devaluation of the USD?

[dukey]

inflation
USA has an enormous balance of trade deficit. If the dollar crashes imports will become more expensive.

Anyone any other opinions ?

If the dollar crashes the chinese could dump the 1.3 trillion.

[sirrom]

this may seem like a dumb question,but does this mean oil prices will go up?

[strider3700]

my gold is up $10 in the last 15 minutes. Thank god I don't have any savings in US dollars. At this rate I expect by christmas gold at $750 oil at $85 and the canadian dollar on par to the US dollar.

It's almost surreal watching the dollar tank so far so quick

[emersonbiggins]

Anyone know how many of the upcoming ARM resets are tied to LIBOR vs. FED?

I thought it was well more than half, but that's not the indication given below, at a recent CNN article on the 50 BP cut's effect on the ARM situation.

$this->bbcode_second_pass_quote('', 'F')ed could ease ARM reset pain
Borderline borrowers could get some relief from a flood of mortgages whose interest rates are set to jump.

[Eli]

Yup he just swooped in and through out the greenbacks.

Well this is great for this site because he just insured that we will see over 100 dollars a barrel sooner rather than later.

Also if this pisses off all the countries that buy our debt like China and they pull even further back from the dollar the US economy is toast.

[jboogy]

I don't know about this , I can't see how the FED thinks it will be good . More dollars worth less and less ? What are they afraid would happen if they left the rate where it was? What are they trying to combat with this move ? Get the economy churning again?

[Leanan]

World Economy at 'Scariest Point Since Depression'

$this->bbcode_second_pass_quote('', 'T')he world economy ``is probably at its scariest point since the Depression'' as fallout from the U.S. subprime mortgage crisis crimps access to credit, said Ethan Penner, a pioneer of the $600 billion commercial mortgage-backed securities market in the early 1990s.

``We're probably at the closest point to a big meltdown, a depression-type meltdown than we have been in our lives,'' said Penner, 46, now a principal at real estate fund management firm Lubert-Adler Partners LP in Philadelphia, during a speech at a Real Estate Media Inc. conference in New York.

...``The effect that's going to have on the economy is sure to be bad,'' Penner said. ``I don't think we're going to have a depression-like situation, but we are going to print a lot of money, and that's going to have its consequences. The price we will pay as a society to avoid depression is high inflation.''

[FoxV]

Yup, the new Maestro steps up to bat.

Stock market is taking off like a rocket (they likies their free money)

[web]http://ichart.finance.yahoo.com/z?s=%5EDJI&t=1d&q=l&l=on&z=m&c=%5EGSPC,%5EIXIC&a=v&p=s[/web]

little miffed as my housing short has just been clobbered, however I'm being more than compensated by gold and the Loonie (almost at parity already). Can't wait to see what the currency exchanges look like when they open tomorrow

As for all the American's reading this, you have my condolences

[Morpheus]

screw you I am moving to canada!

[Bas]

$this->bbcode_second_pass_quote('', 'F')ed puts money presses on "Turbo"

[strider3700]

http://quotes.ino.com/chart/intraday.gi ... =5&a=2&v=s

Ouch

[Leanan]

$this->bbcode_second_pass_quote('sirrom', 't')his may seem like a dumb question,but does this mean oil prices will go up?

[Chuckmak]

Dollar begins to immediately tank:

[web]http://quotes.ino.com/chart/?s=NYBOT_DX&v=s[/web]

[roccman]

My face is hidden for security reasons...I hope you understand.

[firestarter]

$this->bbcode_second_pass_quote('Leanan', '')$this->bbcode_second_pass_quote('sirrom', 't')his may seem like a dumb question,but does this mean oil prices will go up?

[FoxV]

roccman, you're the envy of us all

here's gold and oil btw

[web]http://ichart.finance.yahoo.com/z?s=GLD&t=1d&q=l&l=on&z=m&c=USO&a=v&p=s[/web]

btw, the jump is also in Silver and base metals, so lets go resource stocks

I think oil is just having a little trouble figuring things out. A 0.5% cut means the economy is tanking, so its a little bit confused by all of this. I'm sure by tomorrow's open it'll be nicely up with everyone else

[dinopello]

I wonder how long this party will last ?

I'm a lot richer on paper, ipod prices are down... I think I'll go shopping!