WWBBD?

[Slew Foot]

Last month the unofficial ATOT response was that he F'd up by dropped the rate 50 points. A month or so later, the stock market is largely unchanged (but still volatile) while the "credit crunch" persists. On the other hand, oil and gold have jumped while the dollar has tanked.

So tomorrow, WWBBD?

I personally think dropping the rate 25 points is a lock. Not that it will do anything except maybe raise gold and oil a bit, but it will make it look like he';s trying to do something. He's pretty much stuck between a rock and a hard place.

Poll Upcoming.

 

[CPA]

A second question needs to be added to this poll:

How will Greenspan react when BB makes his move?

I only ask this because that's all the media seems to care about lately. Greenspan needs to just fade away. I liked him, but he's gone now, so enough of the media trying to get a fight going between the two.

 

[Vic]

He'll cut 25 bps. The Fed is just going to inflate this problem away. Oil and gold are not jumping, the dollar is tanking. The logic here BTW is to avoid deflationary pressures caused by reduced credit and consumer spending. Think back to the Great Depression. IF we must have intervention, I suppose this method is better than the way FDR would jail merchants who dared to lower prices, but it's still F'ed up.

 

[Nerva]

remember reading some traders betting 19% that it will be a 50 bps drop

 

[DaWhim]

keeping it the same

 

[nakedfrog]

We need Brian Boitano.

 

[Delita]

Fed Fund Futures indicate that the market believes that there will be a 25bps cut.

 

[JS80]

25bps is a lock

 

[JS80]

buy
GLD
FXE
USO
short
CMG

 

[Slew Foot]

Originally posted by: JS80
buy
GLD
FXE
USO
short
CMG

I understand gold, foreign, and oil, but Chipotle?
One would think that cheap filling food would do well in a slumping economy.

 

[JS80]

Originally posted by: Slew Foot

Originally posted by: JS80
buy
GLD
FXE
USO
short
CMG

I understand gold, foreign, and oil, but Chipotle?
One would think that cheap filling food would do well in a slumping economy.

i love chipotle but a burrito shop trading at PE of 80 will get murdered in this environment.

 

[imported_Lothar]

He'll cut 25 bps.

 

[JS80]

Can we now talk about language from the fed following cut? I predict neutral language that suggests less aggressive future stance for December meeting. Markets sell off.

 

[Slew Foot]

Announcement at 215 Eastern time today. Hmmm, GDP up nearly 4% this last quarter announced earlier, is that a set up to holding steady or raising rates?