$this->bbcode_second_pass_quote('', 'T')he Federal Reserve has ordered an emergency interest rate cut of a half a percentage point to cope with the worst financial crisis since the 1929 stock market crash.
Fed Chairman Ben Bernanke and his colleagues ratcheted down their key rate by 0.5 percent, to 1.5 percent. The action revives the central bank's rate-cutting campaign which had been halted in June out of concerns that those low rates would worsen inflation. Since then, however, economic and financial conditions have dangerously deterioriated, forcing the Fed to reverse course.
The fact that the Fed felt it could not wait until its regularly scheduled meeting late this month underscored the urgency of the situation.
PeakOil is You
Fed orders emergency rate cut to 1.5 percent
Fed orders emergency rate cut to 1.5 percent
by TimeTraveller » Wed 08 Oct 2008, 07:13:06
link
We'll see if this helps. If not, kiss your asses goodbye. This is their last shot. Either way, the dollar is probably toast.
- TimeTraveller
- Wood
- Posts: 5
- Joined: Wed 08 Oct 2008, 03:00:00
Re: Fed orders emergency rate cut to 1.5 percent
by MD » Wed 08 Oct 2008, 07:20:41
Gasoline will be $2 a gallon again.
Stop filling dumpsters, as much as you possibly can, and everything will get better.
Just think it through.
It's not hard to do.
Just think it through.
It's not hard to do.
-
MD - COB
- Posts: 4953
- Joined: Mon 02 May 2005, 03:00:00
- Location: On the ball
Re: Fed orders emergency rate cut to 1.5 percent
by Tanada » Wed 08 Oct 2008, 07:20:48
Free money is worthless if nobody wants it. This is pretty grim news, the only rational course of action would have been to RAISE interest rates.
$this->bbcode_second_pass_quote('Alfred Tennyson', 'W')e are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
- Tanada
- Site Admin
- Posts: 17094
- Joined: Thu 28 Apr 2005, 03:00:00
- Location: South West shore Lake Erie, OH, USA
Re: Fed orders emergency rate cut to 1.5 percent
by JJ » Wed 08 Oct 2008, 07:22:54
Wall streets ho-hum. Dow futures shot up for about five minutes and dropping again.
-
JJ - Heavy Crude
- Posts: 1422
- Joined: Tue 07 Aug 2007, 03:00:00
Re: Fed orders emergency rate cut to 1.5 percent
by Micki » Wed 08 Oct 2008, 07:45:06
No wonder gold had dropped $10 and silver about 30c. Counterintuitive moves in the PM's are still order of the day.
$900 has been a resistance level and it seems as if some powers will try to figh breach of this as long as they can.
But once $900 holds, one would imagine it will be a quick leap to next round number.
Anyway, the share markets might pick up a bit so hoping the miners will show some signs of life. As menioned, the last few days the volumes on most of them have been abysmal (ASX that is) .
$900 has been a resistance level and it seems as if some powers will try to figh breach of this as long as they can.
But once $900 holds, one would imagine it will be a quick leap to next round number.
Anyway, the share markets might pick up a bit so hoping the miners will show some signs of life. As menioned, the last few days the volumes on most of them have been abysmal (ASX that is) .
- Micki
Re: Fed orders emergency rate cut to 1.5 percent
by mididoctors » Wed 08 Oct 2008, 07:47:50
cut it all the way and give money away why don'tcha
Boris
London
Boris
London
-
mididoctors - Tar Sands
- Posts: 578
- Joined: Mon 30 Aug 2004, 03:00:00
- Location: London
Re: Fed orders emergency rate cut to 1.5 percent
by RdSnt » Wed 08 Oct 2008, 07:52:45
The markets may pop up for a bit, I don't expect it to last anything but a few hours, but it certianly won't last past Friday.
On Friday, Lehman's CDO's redemptions are triggered.
On Friday, Lehman's CDO's redemptions are triggered.
Gravity is not a force, it is a boundary layer.
Everything is coincident.
Love: the state of suspended anticipation.
To get any appreciable distance from the Earth in
a sensible amount of time, you must lie.
Everything is coincident.
Love: the state of suspended anticipation.
To get any appreciable distance from the Earth in
a sensible amount of time, you must lie.
-
RdSnt - Heavy Crude
- Posts: 1461
- Joined: Wed 02 Feb 2005, 04:00:00
- Location: Canada
Re: Fed orders emergency rate cut to 1.5 percent
by Nickel » Wed 08 Oct 2008, 07:55:59
$this->bbcode_second_pass_quote('Tanada', 'F')ree money is worthless if nobody wants it. This is pretty grim news, the only rational course of action would have been to RAISE interest rates.
Well, that's just it; you've got it backwards. The time for HIGH interest rates was back when they were making stupid loans to people who couldn't have otherwise afforded them and now defaulting. NOW that there's a tightening of credit, we need lower interest rates just so average businesses can continue to borrow the money they need to move stock, pay wages, hire the people they need, and buy resources... what's really going to kill us is if all the everyday, not-the-size-of-Enron companies out there seize up because they haven't got the money on hand to carry forward.
-
Nickel - Heavy Crude
- Posts: 1927
- Joined: Tue 26 Jun 2007, 03:00:00
- Location: The Canada of America
Re: Fed orders emergency rate cut to 1.5 percent
by Roccland » Wed 08 Oct 2008, 08:03:08
Pissing in a volcano.
500 MPH into a brick wall - me
-
Roccland - Heavy Crude
- Posts: 1604
- Joined: Sat 16 Jun 2007, 03:00:00
Re: Fed orders emergency rate cut to 1.5 percent
by HEADER_RACK » Wed 08 Oct 2008, 08:15:54
This is all bark no bite. The Fed shot it's load earlier in the year,when they should have held back. A 1/2 point cut now doesn't amount to anything but window dressing IMO.
Nothing is more dangerous than a man with nothing left to lose but has everything left to gain.
-
HEADER_RACK - Coal
- Posts: 452
- Joined: Thu 15 Feb 2007, 04:00:00
Re: Fed orders emergency rate cut to 1.5 percent
by benzoil » Wed 08 Oct 2008, 08:18:30
Markets like the idea of the rate cut. Futures at +212 at 8:15 EDT. I guess the fact that WalMart's sales grew only 2.4% (at the very bottom of expectations) didn't matter as much for now.
That said, I wonder how much dead cat is in this pre-bell bounce? Will it hold through the day or maybe even until the weekend - when the Fed will have to announce that they are loaning directly to California and Massachusetts.
That said, I wonder how much dead cat is in this pre-bell bounce? Will it hold through the day or maybe even until the weekend - when the Fed will have to announce that they are loaning directly to California and Massachusetts.
TANSTAAFL
-
benzoil - Coal
- Posts: 443
- Joined: Fri 26 Aug 2005, 03:00:00
- Location: Windy City No Longer
Re: Fed orders emergency rate cut to 1.5 percent
by killJOY » Wed 08 Oct 2008, 08:18:31
When will it be 0%?
How about -1.5%?
Yeah. Let's PAY people to take "money." That oughta work.
How about -1.5%?
Yeah. Let's PAY people to take "money." That oughta work.
Peak oil = comet Kohoutek.
-
killJOY - Intermediate Crude
- Posts: 2220
- Joined: Mon 21 Feb 2005, 04:00:00
- Location: ^NNE^
Re: Fed orders emergency rate cut to 1.5 percent
by jasonraymondson » Wed 08 Oct 2008, 08:22:50
I called this last week, I knew they would do it today.
Not that it will do any good. But Benny boy will keep pretending that things can be fixed with rotten bandages.
Not that it will do any good. But Benny boy will keep pretending that things can be fixed with rotten bandages.
- jasonraymondson
- Permanently Banned
- Posts: 2727
- Joined: Wed 04 Jul 2007, 03:00:00
- Location: Peace Out
Re: Fed orders emergency rate cut to 1.5 percent
by benzoil » Wed 08 Oct 2008, 08:24:30
$this->bbcode_second_pass_quote('killJOY', 'W')hen will it be 0%?
How about -1.5%?
Yeah. Let's PAY people to take "money." That oughta work.
How about -1.5%?
Yeah. Let's PAY people to take "money." That oughta work.
Actually, the Fed is PAYING 1.25% on the worthless junk collateral it gets from banks right now, so the effective rate is .25% if you game it right.
TANSTAAFL
-
benzoil - Coal
- Posts: 443
- Joined: Fri 26 Aug 2005, 03:00:00
- Location: Windy City No Longer
