Fed cuts interest rates by .25%

[waggy]

Originally posted by: jjsole

Originally posted by: m1ldslide1
Does this mean the housing market in my area is going to improve?

It means they are expecting it to get worse and are trying to stave off disaster imo.

hmm seems they are flirting with another though.

 

[upsciLLion]

Originally posted by: waggy

Originally posted by: Agentbolt
Dog and cats, living together! Mass Hysteria!!

NOOOoooooooo!!!

I would actually prefer we were attacked by Gozer than continue watching the Fed do the same thing in much slower motion.

 

[Special K]

Why does the Fed lowering interest rates cause short term surges in the stock market, and why exactly will it cause the price of oil to rise and the value of the dollar to fall? I have read these statements over and over on here but have not seen any accompanying explanation.

Sorry, finance n00b here.

 

[Vonkhan]

ffs ... there goes the dollar

 

[Queasy]

Couple of BankRate.com articles to add to the discussion.

Article on rate cut

The central bank's rate-setting committee lowered the target for the federal funds rate by one-quarter of a percentage point, to 4.5 percent. The prime rate will fall to 7.5 percent. Consumer interest rates based on the prime rate -- mainly home equity lines of credit and most variable-rate credit cards -- will fall a quarter-point in coming weeks.

Normally, you would expect yields on certificates of deposit to fall, too -- especially shorter-term CDs. But that's not necessarily the case this time. It's not a sure thing that mortgage rates will fall, either.

Most economists and investors had expected this rate cut because they believed the Fed would want to address the bursting of the real estate bubble in many of the country's biggest metro areas.

Most economists and investors had expected this rate cut because they believed the Fed would want to address the bursting of the real-estate bubble in many of the country's biggest metro areas.

The Fed explained its action by saying that economic growth was solid from July through September, but "the pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction."

The rate-setting committee cautioned that "some inflation risks remain" because of rising energy and commodity prices, and that the risks of inflation and an economic slowdown are roughly in balance.

In September, the last time the rate-setting Federal Open Market Committee, or FOMC, met, the panel cut the federal funds rate by half a percentage point. That was the first time in more than four years that the Fed had made a rate move, in either direction, of more than a quarter of a percentage point.

"A quarter-point cut would be done in the spirit of insurance, rather than a firm belief that it's necessary," said Richard DeKaser, chief economist for National City Corp., before the Fed's announcement. DeKaser had put himself in what he called "the ultraminority camp" of economists who expected the central bank to keep rates unchanged.

DeKaser said he believes that problems in housing markets are transitory, and that he isn't convinced that the Fed should try to solve them, because it then might create other troubles. The central bank, he said, "also has to worry about inflation, and it's not out of the woods on that front."

.....

Historical perspective
At the beginning of 2001, the Federal Reserve cut short-term interest rates swiftly -- 3 percentage points in four months -- to cushion a recession. More gradual rate-cutting followed. Starting in June 2004, the Fed raised rates, a quarter-point at a time, for two years. Now the Fed has cut the federal funds rate twice in a row, and there's no telling how many are to come.

Winners and Losers (though, they only list winners )

Bankrate is showing mortgage rates down to 5.88%. They were up in the 6.1-6.2% area a couple of weeks ago.

 

[Delita]

Haha you guys really crack me up

 

[Vette73]

Originally posted by: Special K
Why does the Fed lowering interest rates cause short term surges in the stock market, and why exactly will it cause the price of oil to rise and the value of the dollar to fall? I have read these statements over and over on here but have not seen any accompanying explanation.

Sorry, finance n00b here.

lower rates mean more money in the market. So with more money people buy/spend more so then business will report higher income so stocks MIGHT go up.
The dollar drops as infaltion usually goes up, let alone the dollar has been hurting for a while so this just adds injury ti insult. if the dollar drops then oil goes up as inflation hits it in the logn run and oil is traded on the dollar. So dollar goes down goods go up. Canadas money trades higher then the us dollar now.

yes short term it looks good but with the last .5 rate drop and now this will NOT help. I wish greenspan was still in power, this new idiot bush put in is wrecking shit up and i don;t think he ahs been in for a year yet.


This is a good summary from above...

"DeKaser said he believes that problems in housing markets are transitory, and that he isn't convinced that the Fed should try to solve them, because it then might create other troubles."
help patch one small hole by opening a bigger hole elsewhere. :roll:

 

[ViviTheMage]

this blows

 

[waggy]

Originally posted by: Marlin1975

Originally posted by: Special K
Why does the Fed lowering interest rates cause short term surges in the stock market, and why exactly will it cause the price of oil to rise and the value of the dollar to fall? I have read these statements over and over on here but have not seen any accompanying explanation.

Sorry, finance n00b here.

yes short term it looks good but with the last .5 rate drop and now this will NOT help. I wish greenspan was still in power, this new idiot bush put in is wrecking shit up and i don;t think he ahs been in for a year yet.

thats how i feel.


though many were bitching because Greenspan wouldnt make a cut.

to many cuts were designed to help mortgage lenders. its going to do more harm then good.

gotta say its killing my savings =(

 

[PingSpike]

Originally posted by: Agentbolt

what does a quarter-percent interest rate mean for, say, homeowners, consumers, etc

'

It means, among other things, that the dollar is going to tank even further and Core Inflation is going to continue to go through the roof. Which means going grocery shopping is going to be even more painful to the wallet than it currently is.

Take THAT old people! And...erm...everyone?

 

[Rickten]

How can anyone support the war or attacking Iran at a time like this. Screw it lets print up a few hundred billion more and invade a few more countries. This is a little P&N i know but it pisses me off when people can't see there is a much bigger problem than worrying about some third world country getting a nuke in 10 years. The dollar won't be able to pay for the gas to move our tanks in ten years if we keep this up.

 

[manlymatt83]

Originally posted by: QuaziK
obviously the dollar is being destroyed to make way for the Amero.

How close to reality are we to a unified currency with Canada?

 

[aldamon]

Originally posted by: Svnla
There go my savings accounts. Rates will be lower for the savers like myself.

Yeah, this sucks.

 

[Vette73]

Originally posted by: mjuszczak

Originally posted by: QuaziK
obviously the dollar is being destroyed to make way for the Amero.

How close to reality are we to a unified currency with Canada?

Right now Canada would not want that. Their money has a better cross rate compared to the US. That and when this rate drop REALLY kicks in it will be even worse.

 

[GTaudiophile]

So when when will the Euro climb to 2:1 against the dollar? Give it a few weeks?

It seems like our world is run by short term opportunists who have more than 1 month's worth of forethought.

The USA is a sinking ship people, and she is sinking fast. The DOW is too often sighted as a barometer of success as it is simple for the average man to understand, meanwhile everything else is in flames.

So to which European bank are you moving your assets?

 

[manlymatt83]

So would it seriously be a good idea to move money to paypal and convert it to the Euro?

 

[Vette73]

Originally posted by: GTaudiophile
So when when will the Euro climb to 2:1 against the dollar? Give it a few weeks?

It seems like our world is run by short term opportunists who have more than 1 month's worth of forethought.

The USA is a sinking ship people, and she is sinking fast. The DOW is too often sighted as a barometer of success as it is simple for the average man to understand, meanwhile everything else is in flames.

So to which European bank are you moving your assets?

Actually if you look at most 401k and funds you will see soem of the biggest gains are in international funds. not because they are doing that well, but the dollar is dropping so fast it makes them go up based on their currency.

 

[redgtxdi]

3,

2,

1........

Mother Fsckin Son of a Cork Soakin' Son of a !$#$%!~!~!#$~@$^%~$^~!@~#$


I think somebody needs to throw a horse's head in Bernanke's bed!!! :|

Hey Bernanke......................STAY THE FSCK OUT OF THE MESS PEOPLE HAVE MADE FOR THEMSELVES!!! MAKE THESE FSCKING PEOPLE ACTUALLY ***DEAL*** WITH THE CONSEQUENCES OF THEIR BULLSH!T FOR ONCE!!!!!!!!!!!!!!!!!!!! :|

I'm sick to my fscking stomach!!!!!!!! :|

 

[GTaudiophile]

Well, let's say you have $10,000 USD and you put it in Euro Bank X at today's exchange rate of about 1.44. So you have 6.945 EUR in the bank earning interest. Let's assume a high interest rate of 5% per year, so you leave your money in EBX for two months and have 6.950 EUR in the bank but the Euro has strengthened to 1.6:1 and is now worth $11,120 USD. Wouldn't be too bad would it?

I for one believe the USD may never be 1:1 with the EUR again.

 

[Vette73]

Originally posted by: redgtxdi
3,

2,

1........

Mother Fsckin Son of a Cork Soakin' Son of a !$#$%!~!~!#$~@$^%~$^~!@~#$


I think somebody needs to throw a horse's head in Bernanke's bed!!! :|

Hey Bernanke......................STAY THE FSCK OUT OF THE MESS PEOPLE HAVE MADE FOR THEMSELVES!!! MAKE THESE FSCKING PEOPLE ACTUALLY ***DEAL*** WITH THE CONSEQUENCES OF THEIR BULLSH!T FOR ONCE!!!!!!!!!!!!!!!!!!!! :|

I'm sick to my fscking stomach!!!!!!!! :|

yea its great we should bail out mortgage companies, investors, banks, etc... yet we give a kid some oatmeal or a cheese sandwich then all the neocons come out saying they put themselves in that sititution, its their own fault, let them learn the hard way, etc...

 

[GTaudiophile]

Originally posted by: redgtxdi
3,

2,

1........

Mother Fsckin Son of a Cork Soakin' Son of a !$#$%!~!~!#$~@$^%~$^~!@~#$


I think somebody needs to throw a horse's head in Bernanke's bed!!! :|

Hey Bernanke......................STAY THE FSCK OUT OF THE MESS PEOPLE HAVE MADE FOR THEMSELVES!!! MAKE THESE FSCKING PEOPLE ACTUALLY ***DEAL*** WITH THE CONSEQUENCES OF THEIR BULLSH!T FOR ONCE!!!!!!!!!!!!!!!!!!!! :|

I'm sick to my fscking stomach!!!!!!!! :|

Why aren't enough Americans as sick as we are and willing to take action?

 

[Vette73]

Originally posted by: GTaudiophile

Originally posted by: redgtxdi
3,

2,

1........

Mother Fsckin Son of a Cork Soakin' Son of a !$#$%!~!~!#$~@$^%~$^~!@~#$


I think somebody needs to throw a horse's head in Bernanke's bed!!! :|

Hey Bernanke......................STAY THE FSCK OUT OF THE MESS PEOPLE HAVE MADE FOR THEMSELVES!!! MAKE THESE FSCKING PEOPLE ACTUALLY ***DEAL*** WITH THE CONSEQUENCES OF THEIR BULLSH!T FOR ONCE!!!!!!!!!!!!!!!!!!!! :|

I'm sick to my fscking stomach!!!!!!!! :|

Why aren't enough Americans as sick as we are and willing to take action?

Most people are to dumb to understand. Just go to wal-mart and take a survey on what they think about the rate drop. :laugh:
better yet ask them also if they think Iraq had a direct hand in 9/11 and see what % say yes. I'm betting more then 1/3

 

[Vonkhan]

Originally posted by: Marlin1975

Originally posted by: GTaudiophile

Originally posted by: redgtxdi
3,

2,

1........

Mother Fsckin Son of a Cork Soakin' Son of a !$#$%!~!~!#$~@$^%~$^~!@~#$


I think somebody needs to throw a horse's head in Bernanke's bed!!! :|

Hey Bernanke......................STAY THE FSCK OUT OF THE MESS PEOPLE HAVE MADE FOR THEMSELVES!!! MAKE THESE FSCKING PEOPLE ACTUALLY ***DEAL*** WITH THE CONSEQUENCES OF THEIR BULLSH!T FOR ONCE!!!!!!!!!!!!!!!!!!!! :|

I'm sick to my fscking stomach!!!!!!!! :|

Why aren't enough Americans as sick as we are and willing to take action?

Most people are to dumb to understand. Just go to wal-mart and take a survey on what they think about the rate drop. :laugh:

its funny cuz its true

/homer

 

[iamwiz82]

Originally posted by: GTaudiophile
I for one believe the USD may never be 1:1 with the EUR again.

People said the same thing about the CAD.

 

[GTaudiophile]

Originally posted by: Marlin1975

Originally posted by: GTaudiophile

Originally posted by: redgtxdi
3,

2,

1........

Mother Fsckin Son of a Cork Soakin' Son of a !$#$%!~!~!#$~@$^%~$^~!@~#$


I think somebody needs to throw a horse's head in Bernanke's bed!!! :|

Hey Bernanke......................STAY THE FSCK OUT OF THE MESS PEOPLE HAVE MADE FOR THEMSELVES!!! MAKE THESE FSCKING PEOPLE ACTUALLY ***DEAL*** WITH THE CONSEQUENCES OF THEIR BULLSH!T FOR ONCE!!!!!!!!!!!!!!!!!!!! :|

I'm sick to my fscking stomach!!!!!!!! :|

Why aren't enough Americans as sick as we are and willing to take action?

Most people are to dumb to understand. Just go to wal-mart and take a survey on what they think about the rate drop. :laugh:
better yet ask them also if they think Iraq had a direct hand in 9/11 and see what % say yes. I'm betting more then 1/3

Most wouldn't understand as the question(s) would be asked in English...and I don't speak Spanish.