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Fed Does Not Change Interest Rate
http://money.cnn.com/ ^ | 8-7-07

Posted on 08/07/2007 11:20:02 AM PDT by Hydroshock

Fed leaves key short-term interest rate unchanged at 5.25%; indicates worries about credit problems. More details soon.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: fed; govwatch; housingbubble; realestate; speculation
Good!!
1 posted on 08/07/2007 11:20:03 AM PDT by Hydroshock
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To: Hydroshock; Moonman62; ex-Texan

PING


2 posted on 08/07/2007 11:20:32 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

Its Armageddon! We are all going to die!


3 posted on 08/07/2007 11:20:58 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: Hydroshock

We’ll see.


4 posted on 08/07/2007 11:21:12 AM PDT by RexBeach ("Americans never quit." Douglas MacArthur)
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To: Hydroshock

that smell is coming from Jim Cramer’s boxers.


5 posted on 08/07/2007 11:21:16 AM PDT by BurbankKarl
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To: BurbankKarl

I wish he would as another freeper put it earlier today take his bankruptcy like a man.


6 posted on 08/07/2007 11:22:23 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: BurbankKarl
What was Cramer predicting?
7 posted on 08/07/2007 11:22:27 AM PDT by KarlInOhio (May the heirs of Charles Martel and Jan Sobieski rise up again to defend Europe.)
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To: KarlInOhio

He has been ranting and raving for a rate cut.


8 posted on 08/07/2007 11:23:31 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

The available pool of lending instruments to purchase real estate is rapidly dwindling. The housing market is about to take on more inventory.


9 posted on 08/07/2007 11:23:34 AM PDT by Hoosier-Daddy ("It does no good to be a super power if you have to worry what the neighbors think." BuffaloJack)
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To: Hydroshock

The Fed has put themselves in a box. Lowering rates causes the dollar to sink further, rapidly no doubt. Raising rates further compunds the credit worries.

They are between a rock and a hard place.


10 posted on 08/07/2007 11:23:44 AM PDT by jsh3180
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To: BurbankKarl

11 posted on 08/07/2007 11:23:59 AM PDT by Pokey78 (Steyn: Al Qaeda wants to party like it's 799.)
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To: Hydroshock

Did you see that link to Cramer on Drudge? He was certainly ranting! Bear Stearns, perhaps U.S. Bank may crater.


12 posted on 08/07/2007 11:25:01 AM PDT by Hoosier-Daddy ("It does no good to be a super power if you have to worry what the neighbors think." BuffaloJack)
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To: Hydroshock
Fed Does Not Change Interest Rate; CNN Puts Negative Spin on All Economic News
13 posted on 08/07/2007 11:25:15 AM PDT by Recovering_Democrat (I am SO glad to no longer be associated with the party of Dependence on Government!)
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To: Hydroshock

I was kinda hoping for 15.25%.


14 posted on 08/07/2007 11:26:20 AM PDT by AdamSelene235 (Truth has become so rare and precious she is always attended to by a bodyguard of lies.)
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To: AdamSelene235

I was hoping they would take inflation on at 5.50%.


15 posted on 08/07/2007 11:27:06 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

Hell if I know what to do. I'm not touching anything.

5.25% forever!

16 posted on 08/07/2007 11:27:39 AM PDT by AdamSelene235 (Truth has become so rare and precious she is always attended to by a bodyguard of lies.)
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To: Hydroshock

Amen! Why should we depreciate our currency further (and risk inflation) just to bail out those who made poor housing and investment decisions?


17 posted on 08/07/2007 11:28:42 AM PDT by Clemenza (Rudy Giuliani, like Pesto and Seattle, belongs in the scrap heap of '90s Culture)
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To: jsh3180

Exactly.


18 posted on 08/07/2007 11:29:34 AM PDT by djf (Bush's legacy: Way more worried about Iraqs borders than our own!!! A once great nation... sad...)
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To: Hydroshock
He has been ranting and raving for a rate cut.

Last week he predicted the housing stocks would tank and recommended shorting them. However, he cautioned not to short the common directly, but buy puts instead, because if the Fed drops rates a 100 basis points, the housing stocks would recover nicely, and you'd get killed if you were short the common.

19 posted on 08/07/2007 11:29:42 AM PDT by cynwoody
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To: Phantom Lord

Cramer, is that you?


20 posted on 08/07/2007 11:30:19 AM PDT by Deo et Patria (God bless you, President Bush. And God bless America.)
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To: Hydroshock

There is a little bit of justice after all. Good for Bernanke.

I wish we could see the live video feed of Cramer in his office. It would be better than the scene at the end of Wall Street when Gordon Gekko realizes he’s been played and breaks his glass desk.


21 posted on 08/07/2007 11:30:40 AM PDT by RinaseaofDs
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To: Hoosier-Daddy

In my area in SE PA they are still building - and selling - luxury 4000+ sq ft homes for 750K and better.


22 posted on 08/07/2007 11:31:21 AM PDT by cinives (On some planets what I do is considered normal.)
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To: Clemenza

Simple - just depends on who’s pandering for votes among the 30-second attention span crowd.


23 posted on 08/07/2007 11:31:38 AM PDT by tgusa (Gun control: deep breath, sight alignment, squeeze the trigger .....)
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To: Hoosier-Daddy

Good. The price of some of these cracker boxes in California will go down, and my kids might be able to afford a house without a 100 year note.


24 posted on 08/07/2007 11:32:04 AM PDT by RinaseaofDs
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To: Hydroshock
All major indices down 1.2%.

That took almost 15 minutes.

The suggestion is the FED screwed up big time.

Tomorrow the Revolution eh!

25 posted on 08/07/2007 11:32:13 AM PDT by muawiyah
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To: RinaseaofDs

I am sure lowering the rate would have allowed a few of these hedge funds to live a lot longer....refinancing their debts, etc....but now they have to wait three long months for a new hope.


26 posted on 08/07/2007 11:32:26 AM PDT by BurbankKarl
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To: Pokey78

Good to see he has calmed down these days. He was definitely a candidate for a major medical incident.


27 posted on 08/07/2007 11:34:02 AM PDT by RightWhale (It's Brecht's donkey, not mine)
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To: Hydroshock

Dang. I was hoping for an increase. Not sure how much longer I can deal with the temptation to buy money cheaply.


28 posted on 08/07/2007 11:36:03 AM PDT by WinMod70
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To: muawiyah

Love those charts that look like the trajectory of a rock heaved off a cliff.

Lets get the damm correction over with, shall we?


29 posted on 08/07/2007 11:36:22 AM PDT by L,TOWM ("Protesting Clinton's wars was'nt cool..." - Jeneane Garafolo, 2003)
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To: BurbankKarl
The hedge funds that are going to die did so over the last couple of weeks ~ you just haven't heard about it.

They're the guys who've been selling everything they've got to stay alive.

Steel imports from China (rolled sheet used substantially in home construction) and rebar (used substantially in poured foundations, new residential streets and sidewalks) should drop off the edge of the planet.

30 posted on 08/07/2007 11:38:47 AM PDT by muawiyah
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To: cinives

No doubt West Coast transplants that sold out when the gettin’ was good are driving that market. Wait ‘til they get a load of the good old PA school district property taxes.


31 posted on 08/07/2007 11:45:18 AM PDT by WinMod70
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To: Hydroshock

I never understood why dropping the Fed funds rate by 1/4 point would have caused investors to rush back into the mortgage market anyway. I like the non-move by the Fed. The markets have overreacted to the subprime situation and are acting irrationally. No need for the Fed to feed the irrationality by cutting rates when it isn’t warranted.


32 posted on 08/07/2007 11:53:23 AM PDT by Dems_R_Losers (Thanks anyway, Nancy, but we already have a Commander-in-Chief!)
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To: jsh3180
The Fed has put themselves in a box. Lowering rates causes the dollar to sink further, rapidly no doubt. Raising rates further compunds the credit worries. They are between a rock and a hard place.

What we need is coordinated policy with other countries that are raising their rates for no good reason. Unfortunately that's not going to happen with a president that is indifferent, arrogant, and ignorant when it come to economic policy.

33 posted on 08/07/2007 12:00:05 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Hydroshock

No surprise. It’s just what I said would happen. “We’re concerned about inflation, but we could care less about what’s happening with the economy.” A piece of moss could be trained to be on the FOMC.


34 posted on 08/07/2007 12:02:46 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: muawiyah

My bet is they were all short the market. IMO :)


35 posted on 08/07/2007 12:03:01 PM PDT by Racer1
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To: muawiyah

Dow is up 28 now.

LLS


36 posted on 08/07/2007 12:06:38 PM PDT by LibLieSlayer (Support America, Kill terrorists, Destroy dims!)
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To: WinMod70

You got that right - and the land use nazis are pretty bad here too.


37 posted on 08/07/2007 12:10:26 PM PDT by cinives (On some planets what I do is considered normal.)
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To: jsh3180
The Fed has put themselves in a box. Lowering rates causes the dollar to sink further, rapidly no doubt. Raising rates further compunds the credit worries. They are between a rock and a hard place.

With low inflation, low unemployment, good productivity and excellent corporate profitability it looks more like a sweet spot to me. The high-risk mortgage issue is a drop in the bucket.

38 posted on 08/07/2007 12:33:06 PM PDT by jdsteel (proud member of "Mothers And Children Against Criminal Aliens")
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