The FED to CUT next Month?

[Mega]

NO!
I don't mind a recssion, but i want one with MEGA high rates like 1980!
I can only hope that when this bulsh*t liquadty is wiped out the MARKETS will tell anyone who wants to borrow money

"Look Mate we don't care what rate your CB has set, you have demand and we have surply".

Thus the MARKET will DEMAND HIGH RATES!

Let it be, let it be.
Mike

[Spartacus]

Re: The FED to CUT next Month?

http://www.dailywealth.com/archive/2...007_aug_30.asp

[FRED]

Re: The FED to CUT next Month?

http://www.dailywealth.com/archive/2...007_aug_30.asp

What's so radical about a 1.25% cut? The effective Fed funds rate is already under 5%. Goldman. Lehman, et al, every iBank, told us Q1 this year 3 rates cuts will happen before end of year. If the rate is now 5% and 3 x .25% cuts are already priced in then this wild prediction is only one cut away from what the whole market already expects.

Ben better come thru! But not too soon, not with oil and gold spiking up.

[friendly_jacek]

Re: The FED to CUT next Month?

http://www.dailywealth.com/archive/2...007_aug_30.asp

I posted a link to this interview on Jim's Bullish Information sticky thread several days ago. Worth watching.

[whitetower67]

Re: The FED to CUT next Month?

I'm with Mega. If no rate cut means recession for housing and the housing-related sectors then so be it. Other sectors of the economy -- energy, health, manufacturing, etc. -- are not showing difficulties. And, credit-worthy borrowers are perfectly able to obtain credit.

The Fed shouldn't cut rates to rescue malinvestments. Let the housing-related "wealth" be liquidated -- and if that means the investment firms that bought into CDOs get into trouble, well, I still haven't heard anything interesting.

I'd much prefer that than to be taking my salary home in a wheel-barrow.

[flow5]

Re: The FED to CUT next Month?

Housing prices skyrocketed 83% in 5 years. Well maybe speculators should have read the Wall Street Journal article about Ed Yardini buying gold at the top in 1980 (at over $800 per ounce). What goes up may turn around and go down, the caveat being "buyer beware".

Rate cut? There will be a short economic downswing but then the economy rebounds. If the Fed caves in it will make their job more difficult next year.

[blazespinnaker]

Re: The FED to CUT next Month?

What's so radical about a 1.25% cut? The effective Fed funds rate is already under 5%. Goldman. Lehman, et al, every iBank, told us Q1 this year 3 rates cuts will happen before end of year. If the rate is now 5% and 3 x .25% cuts are already priced in then this wild prediction is only one cut away from what the whole market already expects.

Ben better come thru! But not too soon, not with oil and gold spiking up.

How do you cut with the price of gold/oil going up and the dollar tanking?

[FRED]

Re: The FED to CUT next Month?

How do you cut with the price of gold/oil going up and the dollar tanking?

Poom, baby! Let 'er rip!

[metalman]

Re: The FED to CUT next Month?

Housing prices skyrocketed 83% in 5 years. Well maybe speculators should have read the Wall Street Journal article about Ed Yardini buying gold at the top in 1980 (at over $800 per ounce). What goes up may turn around and go down, the caveat being "buyer beware".

Rate cut? There will be a short economic downswing but then the economy rebounds. If the Fed caves in it will make their job more difficult next year.

kind of compelling...

http://www.itulip.com/images/durationunemp090707.gif

and just wanted to add... EJ and Fred own the top and bottom of the top investors list.

http://itulip.com/forums/vbtrade.php?do=topportfolios

is that on purpose?

[Rajiv]

Re: The FED to CUT next Month?

kind of compelling...
and just wanted to add... EJ and Fred own the top and bottom of the top investors list.

It appears that the accounting on that is not quite correct. It does not account for consummated trades resulting in a cash position. So if you are in cash, buy low and sell high -- and are back in cash, the software does not account for the net profit or loss!