So what will the Fed do tomorrow????

[Slew Foot]

Aside from the bankers out there, does anyone think this is a good idea?

 

[manlymatt83]

Will this cause ING Direct to lower rates?

 

[FoBoT]

Originally posted by: Slew Foot
Hellloooo worthless dollars

i get paid in dollars, all i have are dollars


will this be good for my 401(k) that is in asian markets?

 

[Nerva]

Originally posted by: Argo
I'm there with you - I wish the rates stayed the same, but I see them going down. My fear is that lower rates will fuel another round of subprime lending.

are you serious? how will it fuel subprime lending? it's hard for people to borrow money with good credit now. you obviously have missed point.

 

[LegendKiller]

Originally posted by: Slew Foot
Aside from the bankers out there, does anyone think this is a good idea?

I am a banker, I think it's a horrible idea. We will be in parity with the CAD soon. Real wages and such will decline and inflation will inevitably kick in. There'll be a dollar crisis most likely, as foreign reserves in dollars are cut. Oil and other items will raise.

Managing an economy through monetary policy has *never* worked in the long-run. Bernanke is polishing his friends' knobs, nothing more, nothing less.

 

[redgtxdi]

Originally posted by: mjuszczak
Will this cause ING Direct to lower rates?

Yes...........all of the MM funds will drop!!!


Yet ANOTHER reason to be pissed!!!! :|

 

[LegendKiller]

Originally posted by: 3cho

Originally posted by: Argo
I'm there with you - I wish the rates stayed the same, but I see them going down. My fear is that lower rates will fuel another round of subprime lending.

are you serious? how will it fuel subprime lending? it's hard for people to borrow money with good credit now. you obviously have missed point.

It's only been hard because banks, and investors, are currently unwilling to lend since they, in turn, are getting punished. If things move back in, then you might see more lending going on.

Cutting the rate is equiv to giving a drunk with a hangover a fifth of gin.

 

[Slew Foot]

Originally posted by: mjuszczak
Will this cause ING Direct to lower rates?

Yep, the war on savers has commenced.

Of course, spending drives 2/3 of the economy so you need to spike the punchbowl to keep the economy flowing. Of course if you were trying to save for something, f you. Just get yourself some big money loan from a bank, theyll be happy to serve you......maybe.

 

[Nerva]

Originally posted by: LegendKiller

Originally posted by: 3cho

Originally posted by: Argo
I'm there with you - I wish the rates stayed the same, but I see them going down. My fear is that lower rates will fuel another round of subprime lending.

are you serious? how will it fuel subprime lending? it's hard for people to borrow money with good credit now. you obviously have missed point.

It's only been hard because banks, and investors, are currently unwilling to lend since they, in turn, are getting punished. If things move back in, then you might see more lending going on.

Cutting the rate is equiv to giving a drunk with a hangover a fifth of gin.

exactly, what i am trying to say is that now before people lend out money, credit check comes first. the whole subprime fallout was because lenders were lending out money to people without regarding too much their credit score.

 

[Nerva]

Originally posted by: Slew Foot
Aside from the bankers out there, does anyone think this is a good idea?

hah! lets bring back the golden buy out age.

 

[rchiu]

Originally posted by: Slew Foot
Aside from the bankers out there, does anyone think this is a good idea?

I don't think this is a good idea. I still think the US economy is in a decent shape despite of subprime crisis, so there isn't really the need for 50 bps cut. I would support a more gradual cut, 25 bps now and if there is a need, do a another cut in the future.

I am not too worried about dollar value, US trade deficit sucks anyway, and this might help a little. I am more worried about inflation, and with all these energy prices, the Fed better watch for inflation with such a big rate cut.

 

[OS]

this move sent oil up almost $1 and the dollar index into the toilet.

 

[FoBoT]

Originally posted by: OS

this move sent oil up almost $1 and the dollar index into the toilet.

gas prices here have dropped over the past few weeks, inversely proportional to the record high oil price

i guess they called off the conspiracy/price fixing

 

[Aimster]

Will my student loan drop by .5%?
I have salliemae

 

[Vic]

Originally posted by: LegendKiller

Originally posted by: Slew Foot
Aside from the bankers out there, does anyone think this is a good idea?

I am a banker, I think it's a horrible idea. We will be in parity with the CAD soon. Real wages and such will decline and inflation will inevitably kick in. There'll be a dollar crisis most likely, as foreign reserves in dollars are cut. Oil and other items will raise.

Managing an economy through monetary policy has *never* worked in the long-run. Bernanke is polishing his friends' knobs, nothing more, nothing less.

But isn't this exactly what I told you would happen months ago? The Fed is gonna inflate away the housing problem.
It's not just good 'ol boy politics either, this is the Baby Boomer's country, and that generation is determined to rob, rape, and pillage every generation that comes after them.

 

[mzkhadir]

Originally posted by: FoBoT

Originally posted by: OS

this move sent oil up almost $1 and the dollar index into the toilet.

gas prices here have dropped over the past few weeks, inversely proportional to the record high oil price

i guess they called off the conspiracy/price fixing

I think the supplies are pretty high right now.

 

[Special K]

Originally posted by: Aimster
Will my student loan drop by .5%?
I have salliemae

Hasn't the Prime Rate historically followed the federal funds rate? I have a student loan whose interest rate is Prime - 1.25%.

 

[dullard]

Originally posted by: Vic
It's not just good 'ol boy politics either, this is the Baby Boomer's country, and that generation is determined to rob, rape, and pillage every generation that comes after them.

Exactly. All they need to do is to cut taxes and don't touch social security or medicare for 5-10 years, then they can all retire wealthy and happy. After that, taxes can skyrocket to pay for their excesses and they'll laugh all the way to the bank.

Electing anyone who will be in office just before their retirement (upper 50s/lower 60s) is a MASSIVE mistake. As a homework assignment, go look at who is in office now and his/her ages.

 

[PingSpike]

Originally posted by: Argo
I'm there with you - I wish the rates stayed the same, but I see them going down. My fear is that lower rates will fuel another round of subprime lending.

I don't think that will happen. Americans will find a new get rich quick scheme to put all of their money into.

 

[Fraggable]

I'm no economist but we're buying a house in a week and this is great news for me.

In the long run it may hurt in other areas, but .5% over 15 years is a decent savings.

 

[PingSpike]

Originally posted by: dullard

Originally posted by: Vic
It's not just good 'ol boy politics either, this is the Baby Boomer's country, and that generation is determined to rob, rape, and pillage every generation that comes after them.

Exactly. All they need to do is to cut taxes and don't touch social security or medicare for 5-10 years, then they can all retire wealthy and happy. After that, taxes can skyrocket to pay for their excesses and they'll laugh all the way to the bank.

Electing anyone who will be in office just before their retirement (upper 50s/lower 60s) is a MASSIVE mistake. As a homework assignment, go look at who is in office now and his/her ages.

Then once they're all old and retired, they'll just keep voting for any politician that keeps their entitlement programs going while screwing the younger generations with a metric shit ton of taxes. And since there's a gazillion of them, it'll work.

 

[LegendKiller]

Originally posted by: Vic

Originally posted by: LegendKiller

Originally posted by: Slew Foot
Aside from the bankers out there, does anyone think this is a good idea?

I am a banker, I think it's a horrible idea. We will be in parity with the CAD soon. Real wages and such will decline and inflation will inevitably kick in. There'll be a dollar crisis most likely, as foreign reserves in dollars are cut. Oil and other items will raise.

Managing an economy through monetary policy has *never* worked in the long-run. Bernanke is polishing his friends' knobs, nothing more, nothing less.

But isn't this exactly what I told you would happen months ago? The Fed is gonna inflate away the housing problem.
It's not just good 'ol boy politics either, this is the Baby Boomer's country, and that generation is determined to rob, rape, and pillage every generation that comes after them.

Yes, you did. HOwever, I believed that nobody would want a Wiemar Redux in the US.

 

[OS]

Originally posted by: Fraggable
I'm no economist but we're buying a house in a week and this is great news for me.

In the long run it may hurt in other areas, but .5% over 15 years is a decent savings.

if this is good for you depends on what kind of mortgage you are getting.

 

[JoeyM]

Dohh! I sold all of my stocks yesterday to buy a house on Friday. So not only would I have made another $20k (I sh*t you not) had I waited one day but I don't benefit from the rate cut. I'll bet stocks continue to rise all week. Why didn't my broker tell me to wait a day? It's my own fault for not knowing that a rate cut was even coming today. Oh, the pain!!

Joe M.

 

[Fraggable]

Originally posted by: OS

Originally posted by: Fraggable
I'm no economist but we're buying a house in a week and this is great news for me.

In the long run it may hurt in other areas, but .5% over 15 years is a decent savings.

if this is good for you depends on what kind of mortgage you are getting.

Maybe I should explain that, it's my dad that's getting the mortgage, selling a paid off ~$120K house and buying a $200K house. ~$87K loan for 15 years is the result. I'm nearly 23 and living at home until this is all settled and helping him out with the double payments until the old house sells so it affects me too.