(MarketWatch) 1:33 p.m. EDT 9-15-08 Fed will cut target rate a half percent Tuesday: Merrill
Submitted by Jim Brown on Mon, 09/15/2008 - 18:32NEW YORK (MarketWatch) -- The Federal Reserve will cut its target overnight borrowing rate by a half percentage point to 1.50% at its meeting tomorrow, said Merrill Lynch economists David Rosenberg and Drew Matus in a note Monday. "In the current environment, the Fed may feel the need to get in front of the situation with a more aggressive move" instead of the standard quarter-point reduction, they said. Merrill (MER:Merrill Lynch & Co., Inc MER 17.06, +0.01, +0.1%) , one of the 19 primary security dealers that trade directly with the New York Fed, was bought by another dealer, Bank of America (BAC:bank of america corporation
BAC 26.55, -7.19, -21.3%) overnight. "Recent events suggest a large deleveraging of the banking system is picking up steam and suggests the risks to the economy are entirely concentrated in the growth outlook," Rosenberg and Matus said. Merrill analysts had previously expected the Fed to reduce rates in the first quarter as inflation subsided. "Inflation concerns will take a backseat, or move to the trunk," they said. The Fed may also remind markets that the discount window and other liquidity facilities are available.
http://www.marketwatch.com/news/story/fed-cut-target-rate-ha...
Good comments too
you know... it really does
you know... it really does sadden me to slowly see this money raining from helicopters myth to come full circle from laughable, humorous one liner to a frightening, literal promise. i was hoping that at worst the low interest rates would extend beyond its original horizon in 2009 as they were previously speculating, but i kindof thought that we learned that cutting the rate isnt helping anything back in the earlier half of this year.
Wow
And the stupidity is reaching critical mass.
When are we going to stop listening to idiots?
The whole system has been corrupted... the recent dollar stregthening only allows them to further dig us in deeper... Interest rates are not the problem... these people flip flop daily and no one calls them on anything they do...
Within the past year they have told us:
There is no crisis
There is no recession
The economic stimulus package is the medicine
The Bears Sterns deal is a once in a lifetime deal
The Mortgage protection Act is the key
The bazooka in Paulson's pocket will not be necessary
The Freddie Fannie bailout is the solution
and now this week... if you notice the time between these is getting smaller... folks we are near the end of the rope
Get stocked up on food and ammunition now!
Mike
"Fire Team for Freedom" and "Revolutionary Business"
visit www.mikeandjake.com
Mike
"Fire Team for Freedom"
visit www.mikeandjake.com
Gold and commodities may see
Gold and commodities may see a rise in their dollar prices because of tomorrow's action by the FED but the price rise will only be anticipatory action by speculators(i.e. people buying gold/selling dollar denominated assests in anticipation of future inflation). Inflation results in price rises as the newly created money begins to circulate causing traders to re-evaluate their positions... or at least this is what I've come to understand(I may be wrong). This cannot occur in one day, in fact, if the 'markets' approve of this decision by the FED then it may result in a temporary rally of the stock market.
"My theories explain, but cannot slow the decline of a great civilization. I set out to be a reformer, but only became the historian of decline."
- Ludwig Von Mises
normally when they cut rates
normally when they cut rates ... the dollar rises and metals go down ... but it really looks like they are going to drive the entire train off the bridge .... they didn't bail it out but they are lowering rates? hahaha
it would be funny if they lowered and the dollar went down and metals rallied
i would laugh in bernanke's face and then he would set the rate to -10% lol
hyperinflation baby
I think it's the opposite rate cut dollar falls
because money will be put into the market driving the dollar down
"Evil flourishes when good men do nothing."
—Edmund Burke
A Republic, If You Can Keep It
yes dollar falls
inflation kicks in
ya
and foreigners flee the dollar with rate cuts... making in tank..
/Mike
/Mike
Front Fell Off
http://www.youtube.com/watch?v=WcU4t6zRAKg
If they cut rates, gold and other metals should spike up?
"Evil flourishes when good men do nothing."
—Edmund Burke
A Republic, If You Can Keep It
The price of metal is being artificially held down TN Volunteer
in order to give an impression that all is well.
If you'd like to learn more about this try: www.gata.org
___________
Lisa C.
**This space is available.**
Ron Paul "Sign Wave Across the USA" -- November 5th!
There maybe some manipulation...
tomorrow we will see how deep it goes.
"Evil flourishes when good men do nothing."
—Edmund Burke
A Republic, If You Can Keep It
We've already seen it, TN Volunteer!
I'm not sure what you're missing.
Gold is not allowed to finish the trading session up more than 2% -- this has been going on for years.
We have seen the biggest fall in the stock market since 9/11 and the fall of Lehman and Merrill (not to mention Freddie and Fannie) and silver and gold are both down. While Americans were going to church and BBQ-ing yesterday, those of us in Asian time zones were watching gold -- the barometer of a healthy economy. It is absolutely pathetic how hard these people are working to prop up their lies and deceit.
___________
Lisa C.
**This space is available.**
Ron Paul "Sign Wave Across the USA" -- November 5th!
Here's an article on that
Here's an article on that site that I found interesting:
http://seekingalpha.com/article/95496-the-law-of-supply-and-...
"My theories explain, but cannot slow the decline of a great civilization. I set out to be a reformer, but only became the historian of decline."
- Ludwig Von Mises