[emersonbiggins]

Yahoo!

$this->bbcode_second_pass_quote('', 'F')ed Cuts Rates by Half Point- Reuters

With fears of a recession growing, the Federal Reserve cut interest rates Wednesday by a half percent -- as was widely expected. The reduction comes just eight days after a three-quarter point emergency cut and amid new data showing that the economy nearly stalled in the fourth quarter.
...

[dukey]

when they slash the rates
its going to be harder for the US to borrow money ? Because people will be less willing to invest when the rate of return is so low ? Thus making the credit crisis actually worse. Or did i miss understand something.

[emersonbiggins]

$this->bbcode_second_pass_quote('dukey', 'w')hen they slash the rates
its going to be harder for the US to borrow money ? Because people will be less willing to invest when the rate of return is so low ? Thus making the credit crisis actually worse. Or did i miss understand something.

[roccman]

Got gold?

[emersonbiggins]

Holy shit - US$ off a cliff!



INO USD

[Prince]

Ooh, baby look at those gold prices soar! $936.50/oz at the time of this posting.

[emersonbiggins]

$this->bbcode_second_pass_quote('golem', '
')They hit 9 times right?

[Plantagenet]

Lower interest rates make the US dollar less attractive then other currencies. One effect of the interest rate cut will be to make the dollar sink even further relative to the Euro, Pound, Loonie, etc.

[billg]

$this->bbcode_second_pass_quote('', 'L')aRouche Demands That the Fed Raise Interest Rates Immediately
http://www.larouchepac.com/news/2008/01 ... ately.html

January 25, 2008 (LPAC)--Lyndon LaRouche today called for the Federal Reserve to immediately raise interests rates--to above the rates of the European Central Bank and the Bank of England. LaRouche issued the call in the context of an existential threat to the United States, coming from the accelerating crash of the post-Bretton Woods monetary system and an all out assault on the U.S. coming from European oligarchical circles, led from London.

While the ECB and other European banks are raising interest rates to bring down the United States, through the triggering of a further crash of the U.S. Dollar, and through a massive move of European and European-steered capital into the U.S.A. to literally "buy up" U.S. banks and corporations at fire-sale prices, Bernanke and company at the Fed are playing into the European assault by further weakening the Dollar through their hyperinflationary interest rate cuts.

The raid on the U.S.A., LaRouche explained, is being run out of Europe, particularly out of London, and the only way to defend the vital national security interests of the United States is by raising interest rates, to protect the value of the Dollar. It were best, LaRouche added, to keep U.S. interest rates slightly higher than those of the ECB and the Bank of England. We are under attack, and it is time that some people in Washington woke up to that fact and determined to fight back. This is one measure that will get the Europeans, particularly the British, howling in anger--that their game is up. American patriots with brains, LaRouche concluded, will agree with me that this is what has to be done. I hope to hear other voices joining me in this call, particularly in light of reports that have crossed my desk, that Bernanke and the Federal Open Market Committee (FOMC) plan to further reduce interest rates in a matter of days, when they convene their next formal meeting.

[Tyler_JC]

The rest of the world should be easing its interest rates too.

The Canadian Loony can't stay above 1 US Dollar for long without crashing the export market.

It looks like Europe would rather give out cheap loans to big business than cut the central bank's rate.

[Troyboy1208]

Well damn that trip to Europe looks more and more expensive...sigh

[Revi]

I wonder what this will do to the price of goods. The last rate cut made everything about 2% more expensive. I'll bet this one will be enough to make everything at least 1 and 1/2% more expensive.

Commodities keep powering higher:

http://www.thestreet.com/p/_yahoopi/rmo ... &cm_ite=NA

Those of us buying things will have at least a penny less per dollar to spend now.

[Chuckmak]

...and the market STILL finished in the red

LMAO

[Kingcoal]

The stock market had a rally today after the ratecut and then tanked. This doesn't look good to me. In the past, stock market crashes were preceded by this kind of activity. The big boys get out of the market and then the retail investors. After that, there's no one left buying.

[JPL]

Europe cut rates? Why? I see no possible reason (from where I'm sitting) why that would be a good idea for us.

JP

[Flowerr]

The cat is dead!The cat is dead!
I went to pat him on the head
He didn't purr, he didn't meow
He didn't blink or sniff

He seemed to have a funny smile
That made me laugh but all the while
The tail that used to flip and flop got awful cold and stiff

[Opies]

$this->bbcode_second_pass_code('', '
FTSE 100 5837.3 down -47.90
Dax 6875.4 down -17.61
Cac 40 4873.6 down -67.88
Dow Jones 12442.8 down -37.47
Nasdaq 2349.0 down -9.06
S&P 500 1355.8 down -6.49
BBC Global 30 5646.5 down -20.75
')
anyone else laughing?

Well actually I shouldn't... We keep forcing our dollar down to keep 1:1 for trade... bleh

[Flowerr]

Maybe he should cut it 2 points?
If he doesn't then everyone will know he is powerless.

What happens when the interest rate goes to zeroe?

that would stimulate the economy eh?

[I_Like_Plants]

Japan actually went to NEGATIVE a half percent, and they've been in a sort of perma-slump ever since.

[Opies]

$this->bbcode_second_pass_quote('I_Like_Plants', 'J')apan actually went to NEGATIVE a half percent, and they've been in a sort of perma-slump ever since.