Skip to comments.Stocks Jump As Rate Cut Hopes Increase (Dow up 335, NASD up 80)
Posted on 11/28/2007 12:14:44 PM PST by rightinthemiddle
Wall Street Has 2nd Straight Rally on Rate Cut Hopes, Signs That Financials Are Finding Cash
NEW YORK (AP) -- Wall Street barreled higher Wednesday for the second day in a row, propelling the Dow Jones industrials up more than 300 points after a Federal Reserve official hinted that the central bank may lower interest rates again.
Investors' renewed hopes for a rate cut added to their relief that companies that made losing bets on subprime mortgages, such as Citigroup Inc. and Freddie Mac, are coming up with ways to raise cash.
Early Wednesday, Fed Vice Chairman Donald Kohn told the Council on Foreign Relations that recent financial turbulence has reversed some of the improvement seen in markets in previous weeks, and could squeeze credit for households and businesses. He said tight financial conditions may merit "offsetting" policy from the central bank.
(Excerpt) Read more at biz.yahoo.com ...
If anything, it's the opposite . . . we can't even get our government to enforce immigration laws already on the books!
I’m guessing we both knew that. ;OD
The dollar is a market just like stocks, bonds and commodities.
The “short the dollar” trade has a lot of gains in it, and the Fed has put out contradictory information for people shorting the dollar in the last week.
So the Forex traders will cover their trades. When they do that, the dollar goes up - in the short term.
People need to learn to not pay too much attention to a single day, and to pay much more attention to trends. The trend on the USD has been down - hard - for a couple months.
What you speak of is a classic example of what happens when a central bank allows deflation to get away from them: it is impossible to force people to spend money.
Six years later we hit an all-time high?
Faster than BJ’s pants.
AP Breaking News: Dow once again fails to reach 14000. /s
Don’t mock them, If I just listened to those goldbugs half the time, I’d be a millionare.
Of course, the trick is knowing which half of the time to listen to them :-)
Yes, but I bet a large portion of people reading this didn’t know that.
For the rest of us it would be good news if the Fed didn't need to cut rates to keep stimulating the economy to avoid recession.
Bah, don't mind me. I'm just bitter because my girlfriend lives in Canada and the weak dollar is killing me whenever I go to visit here there. The dollar was just getting back to the point where it looked like it might start gaining value against the loony again, but a rate cut will reverse that once again.
“Lets revisit the question in a year or two.”
Thats exactly what goldbugs said when it tanked in the mid 80’s.
Dims are in a tail spin today with stocks soring.....
Pathetic Bill Clinton out talking down our system
1, 3, and 6 month LIBORs are all higher than a month ago.
I’m well aware what it stands for.
Let me clarify my statement: Historically, it tends to ebb and flow as prime does, sometimes leading sometimes following.
That’s not a guarantee of future performance.
That was then, this is now. Let’s revisit the question in a year or two. Or, shall I post some charts of the Dow, as measured by various things (including, but not limited to, dollars)?
I don’t favor a rate cut, or a small one at most. I think the market will work it out.
Why would you hope for people to go to the poor house?
Perhaps we should revisit the days of high interest rates, where the “savers” who were not willing to take any risk were rewarded more than “investors.”
Capitalism works, warts and all.
We may have had a double-bottom around 12,800.
Hardly! Unless one believes that such wild gyrating is healthy. Whatever the picture, the basic economy hasn't changed. These wild eyed stampedes to and from the exits are indicative of a lot of uncertainty. It is still prudent to diversify with gold.
“Perhaps we should revisit the days of high interest rates”
Made more money durring those years than before or after.
Buying and selling property and borrowing at 12% and loaning it out at 18%.
A savings account did better than SPX for all these years.
Yup, they need to bring back “the worst economy since Hoover” that served them so well in ‘04.
I love listening to Democrat strategists and advisors, talking about how people are “worried” and think “we are already in a recession.”
“Real incomes aren’t going up because of inflation...the tax cuts benefit the rich...the middle class isn’t participating...blah, blah, blah.”
Populist crap. Work, save, invest, pay your bills, stay insured. Work is the key. Control your own destiny.
I congratulate you on your contributions to society.
Bloomberg has a nice page with everything summarized:
I believe at the time when the dollar was at its lows only about 27% of the worlds currency reserves were in the dollar as compared to today when about 65% of the worlds currency reserves are in the dollar.
Yep. I’m (barely) old enough to remember bearer bonds and literally “clipping coupons.” There were plenty of ways to avoid reporting the income.
Sadly, bearer bonds have gone the way of all simpler times.
There’s a lot of fear among importers about the Fed lowering rates, and thus, shrieking and effort to publish gloom and doom about the inflation bogeyman. Their real fear is that the dollar will further adjust toward currencies of their communist slave state friends and that freight fuel will go up.
We need to produce more in the USA. Duncan Hunter tells the truth about the situation and what’s needed to correct it. Others lie and spread anti-American economic propaganda through their sponsorships of the MSM.
Duncan Hunter — Dearborn, Mich. Debate
The half I would listen to them is when they say nothing.
They always hawk for a buy when they are selling, do the opposite.
>> Work, save, invest, pay your bills, stay insured. Work is the key. Control your own destiny.
Of course, but then again, this ain’t a bear market. We’ve had a 10% correction, after which, the market was still up for the year. Neither case is a trademark of a bear market. Just like the “Recession” doomsday folks, saying something over and over doesn’t make it true.
"HEY, you idiots... You can't make the markets go up, we've got BIG problems here!"
Exactly. I remember the last housing bust cycle. At the same time in the cycle as we are now with this downturn, the last one was far worse. Wake me up when these 9-sigma doomsday events happen...until then...(yawn)...