WWBBD? Part 3 (What Will Ben Bernake Do)

[Slew Foot]

Looks like Wall street is worried about its bonuses again so here comes BB to bail them out. Looks like a 25 point cut is in the bag, will he go for more? On a side note, what will oil, gold, and the dollar do tomorrow?

 

[ponyo]

50 points cut.

oil and gold will fall. dollar will rally. Yes it's counter-intuitive but the dollar has staged a mini-rally recently and I expect it to continue despite the rate cut.

 

[maddogchen]

i hope they will keep it as it is.

 

[BarneyFife]

50 points.

Just a guess.

 

[Dr. Detroit]

I locked into a 9-month CD at 5.5% last week, its been strange but CD rates havent been affected much by the 75 point drop.

I think they will drop rates another 25 points but I'm hoping they don't. Dollar needs to regain some of its value!

 

[lupi]

Not sure it matters

Checked my CU for the current mortgage rates and they've only dropped about an 8th of a point since the Fed has dropped the rate by 3/4. Was hoping to see more response on the mortgage loan end.

 

[imported_Lothar]

25 point cut.

 

[Dacalo]

25 point cut. 50 seems a bit too much at this point.

 

[imported_Lothar]

Someone actually voted for a rate increase? :roll:

 

[Slew Foot]

Any other ideas? I think there's about a 40% chance of going 50 bps from readings today. Whether or not thats a good idea is a different story.

 

[lupi]

Originally posted by: Lothar
Someone actually voted for a rate increase? :roll:

Outside of being Bens wife and saying no more puntang if you don't drop the rate, you can be virtually sure there will be a rate drop.

 

[Special K]

Originally posted by: lupi
Not sure it matters

Checked my CU for the current mortgage rates and they've only dropped about an 8th of a point since the Fed has dropped the rate by 3/4. Was hoping to see more response on the mortgage loan end.

I thought fixed rate mortgages tracked US treasury bonds rather than the prime rate?

 

[Slew Foot]

Originally posted by: Special K

Originally posted by: lupi
Not sure it matters

Checked my CU for the current mortgage rates and they've only dropped about an 8th of a point since the Fed has dropped the rate by 3/4. Was hoping to see more response on the mortgage loan end.

I thought fixed rate mortgages tracked US treasury bonds rather than the prime rate?

They do, prime rate is more for HELOCs and credit cards and such.

Decision within a couple hours I think.

 

[ponyo]

whispers of 25 point cut in fed funds rate and 75 points cut in the discount rate.

 

[Mo0o]

http://www.youtube.com/watch?v=ipJTqCbETog

 

[ponyo]

official.

25bp cut funds cut, 25bp cut discount rate.

I fear disappointment and sell on the news. First move is almost always false and the market dropped. That may signal higher close later today or tommorrow.

 

[ponyo]

Financial stocks and homebuilders are bleeding red from this decision. Both groups had decent gains recently as everyone hoped for larger cut.

 

[Vette73]

Time to watch inflation shoot up and the dollar drop even more. Nice to see the Fed help the short term by killing us in the long haul. And even then i don;t think this will help that much in the short term.

 

[Slew Foot]

market down 200 points right now.

 

[Agentbolt]

Dammit all. The first 6 didn't work, what the hell makes him think this is going do anything useful other than blow up inflation and kill the dollar?

edit: Marlin beat me to it.

 

[Slew Foot]

Foolishness. Doing the same thing again and again and expecting a different result.

 

[Slew Foot]

Looks like things are picking up a bit, the long term outlook for the average taxpayer is getting crappier by the day.