Fed Cuts Discount Rate

[WDCRob]

Re: Fed Cuts Discount Rate

Mega, how do you type while wielding a pitchfork and torch?

[Mega]

Re: Fed Cuts Discount Rate

Just Wacthed "Cramer" That f*cking ,back stabing SOB got His way!
Oh Yes he now telling "Joe sixpack" to BUY in heavy!

One thing though, he said that if the FED had NOT cut rates the market would have imploded today (i think he right).

One day, one day we string up up you little turd!
Mega

[FRED]

Re: Fed Cuts Discount Rate

this is what meyers suggested would happen according to ej's notes on the goldman conf call-- lower the discount rate but not the fed funds rate. the futures are pointing to a big pop in equities, and a resumption of dollar weakness. we'll see if it holds.

Fun knowing what's going to happen before it happens.

[Finster]

Re: Fed Cuts Discount Rate

I'm not near solidified in my own thinking about KA-Poom's timing, if it in fact plays out, but if EJ is proven correct again, then what you recall about EJ's notion of the collapse making '87 look benign seems to me to be a bit still out in the future--how far? who knows.

It seems me to any talk of Poom right now is premature.

The correction even down to Thursday's intraday lows are still not big market drops.

Yeah, it's amazing how much weeping and wailiing and gnashing of teeth there has been about a piddling 10% selloff. A symptom of the extreme level of leverage that has been assumed.

And agreed it is unlikely we have seen the bear's last act. In the mortgage market alone, ARM resets are scheduled at least well into next year. And the leverage has been far from eliminated. We can also look to the last bear market (down 50%!) for rough precedent - the Fed had actually started cutting its announced Fed funds target at the beginning of 2001. The stock bear continued for nearly two more years.

[Jim Nickerson]

Re: Fed Cuts Discount Rate

So now what...

To little... to late....

Start of the Poom.....

I'm still waiting for EJ's crash worse than 87.

I'm not near solidified in my own thinking about KA-Poom's timing, if it in fact plays out, but if EJ is proven correct again, then what you recall about EJ's notion of the collapse making '87 look benign seems to me to be a bit still out in the future--how far? who knows.

It seems me to any talk of Poom right now is premature.

The corrections even down to Thursday's intraday lows are still not big market drops.

[qwerty]

Gold

It's not doing THAT much is it? No great rally in face of Fed's action.

What do people make of that?

[c1ue]

Re: Fed Cuts Discount Rate

I thought I felt something

I got my Apple puts sold, but I was too spooked by this to put in the rebuys...

Looking into yesterday's action I was wondering if it was the S & P hitting what many many newsletters had called major resistance at 1375 or something else.

Good thing I left my money on Apple puts off the table...starting to reload.

I even bought GLD

Today I finally succumbed to Lukester and bought GLD - first at $65 then averaged down with a $63.82. Damn I missed the $63.50 by about 1 minute.

So my Schwab 401K is now 70% GLD, with the remainder Yahoo and mostly cash.

To be clear, GLD is a trading position not a core holding.

Time to clear out of my major C and JPM positions - looking to trade out in the next 2 weeks. Both positions were core holdings (bought in 1992 and 2002 respectively).

I see $54 as a top for C and $52 as a top for JPM, but anything can go with the pump starting to work.

[Finster]

Re: Fed Cuts Discount Rate

So now what...

To little... to late....

Start of the Poom.....

I'm still waiting for EJ's crash worse than 87.

Even the most vicious bear markets don't go straight down. There were phenomenal countertrend rallies all through the 89% plunge in 1929-1932. When the short positions pile up, they're like kindling waiting for a spark. Which is why what happens in the stock market today also has to be interpreted along with what happens in Treasuries, gold, etceteras.

[Sapiens]

Re: Fed Cuts Discount Rate

LOL, the in$iders will cash out, mon and pop, Jane and Joe Sixpack will be left destitute and ready to once again jump on the hamster’s wheel when the dust settles.

The borrower is subject to the lender, simple enough. Being Friday, we don't want people spooked going into the weekend.

Cheers,

-Sapiens

[jk]

Re: Fed Cuts Discount Rate

this is what meyers suggested would happen according to ej's notes on the goldman conf call-- lower the discount rate but not the fed funds rate. the futures are pointing to a big pop in equities, and a resumption of dollar weakness. we'll see if it holds.

[Rajiv]

Re: Fed Cuts Discount Rate

Another attempt by the Fed to prevent a Friday meltdown (today being Double Witching)

[dbarberic]

Re: Fed Cuts Discount Rate

So now what...

To little... to late....

Start of the Poom.....

I'm still waiting for EJ's crash worse than 87.

[Finster]

http://www.federalreserve.gov/boardd...72/default.htm

Release Date: August 17, 2007

For immediate release

To promote the restoration of orderly conditions in financial markets, the Federal Reserve Board approved temporary changes to its primary credit discount window facility. The Board approved a 50 basis point reduction in the primary credit rate to 5-3/4 percent, to narrow the spread between the primary credit rate and the Federal Open Market Committee's target federal funds rate to 50 basis points. The Board is also announcing a change to the Reserve Banks' usual practices to allow the provision of term financing for as long as 30 days, renewable by the borrower. These changes will remain in place until the Federal Reserve determines that market liquidity has improved materially. These changes are designed to provide depositories with greater assurance about the cost and availability of funding. The Federal Reserve will continue to accept a broad range of collateral for discount window loans, including home mortgages and related assets. Existing collateral margins will be maintained. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York and San Francisco.