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Stocks Jump As Rate Cut Hopes Increase (Dow up 335, NASD up 80)
AP?YodleWho! ^ | Wednesday November 28, 2:57 pm ET | By Madlen Read, AP Business Writer

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 ...


TOPICS: Business/Economy
KEYWORDS: djia; dow10000; economy; fed; markets; stocks; wallstreet; wgids
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To: Petronski

;-)


51 posted on 11/28/2007 12:56:21 PM PST by misterrob (Eleven down, Eight more til the Pats win the SB again.)
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To: garbanzo
It may be what they want, but there's really nothing written into our laws and/or our culture that would promote that kind of scenario.

If anything, it's the opposite . . . we can't even get our government to enforce immigration laws already on the books!

52 posted on 11/28/2007 12:56:35 PM PST by Alberta's Child (I'm out on the outskirts of nowhere . . . with ghosts on my trail, chasing me there.)
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To: Phantom Lord

I’m guessing we both knew that. ;OD


53 posted on 11/28/2007 12:57:42 PM PST by Petronski (Reject the liberal troika: romney, giuliani, mccain)
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To: Perdogg

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.


54 posted on 11/28/2007 12:59:17 PM PST by NVDave
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To: HamiltonJay

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.


55 posted on 11/28/2007 1:00:05 PM PST by NVDave
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To: steve86

Six years later we hit an all-time high?


56 posted on 11/28/2007 1:02:08 PM PST by CharlesWayneCT (The Swiss Ninja.)
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To: misterrob

Faster than BJ’s pants.

AP Breaking News: Dow once again fails to reach 14000. /s


57 posted on 11/28/2007 1:02:16 PM PST by casino66 ( If I vote Dem I'll get everything 'free')
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To: Beagle8U

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 :-)


58 posted on 11/28/2007 1:02:56 PM PST by CharlesWayneCT (The Swiss Ninja.)
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To: Petronski

Yes, but I bet a large portion of people reading this didn’t know that.


59 posted on 11/28/2007 1:03:01 PM PST by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: rightinthemiddle
That's good news for speculators that benefit benefit from the volatility int he stock price.

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.

60 posted on 11/28/2007 1:03:06 PM PST by untrained skeptic
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To: coloradan

“Let’s revisit the question in a year or two.”

Thats exactly what goldbugs said when it tanked in the mid 80’s.


61 posted on 11/28/2007 1:03:45 PM PST by Beagle8U (FreeRepublic -- One stop shopping ....... Its the Conservative Super WalMart for news .)
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To: rightinthemiddle

Dims are in a tail spin today with stocks soring.....

Pathetic Bill Clinton out talking down our system


62 posted on 11/28/2007 1:05:17 PM PST by JFC
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To: steve86

1, 3, and 6 month LIBORs are all higher than a month ago.


63 posted on 11/28/2007 1:06:08 PM PST by steve86 (Acerbic by nature, not nurture™)
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To: Phantom Lord

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.


64 posted on 11/28/2007 1:10:43 PM PST by RockinRight (Just because you're pro-life and talk about God a lot doesn't mean you're a conservative.)
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To: Beagle8U

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)?


65 posted on 11/28/2007 1:11:28 PM PST by coloradan (Failing to protect the liberties of your enemies establishes precedents that will reach to yourself.)
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To: untrained skeptic

I don’t favor a rate cut, or a small one at most. I think the market will work it out.


66 posted on 11/28/2007 1:16:04 PM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: rightinthemiddle

bump


67 posted on 11/28/2007 1:16:47 PM PST by markman46 (engage brain before using keyboard!!!)
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To: dalereed

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.


68 posted on 11/28/2007 1:18:10 PM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: steve86

We may have had a double-bottom around 12,800.


69 posted on 11/28/2007 1:20:56 PM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: rightinthemiddle
Goldbugs and Oil Barons deeply saddened.

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.

70 posted on 11/28/2007 1:22:09 PM PST by ghostrider
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To: rightinthemiddle

“Perhaps we should revisit the days of high interest rates”

Can’t wait!

Made more money durring those years than before or after.

Buying and selling property and borrowing at 12% and loaning it out at 18%.


71 posted on 11/28/2007 1:23:00 PM PST by dalereed
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To: CharlesWayneCT
Six years later we hit an all-time high?

A savings account did better than SPX for all these years.

72 posted on 11/28/2007 1:25:39 PM PST by steve86 (Acerbic by nature, not nurture™)
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To: RogerWilko

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.


73 posted on 11/28/2007 1:26:31 PM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: rightinthemiddle

bump


74 posted on 11/28/2007 1:29:03 PM PST by VOA
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To: dalereed

I congratulate you on your contributions to society.


75 posted on 11/28/2007 1:30:39 PM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: RockinRight

Bloomberg has a nice page with everything summarized:

http://www.bloomberg.com/markets/rates/index.html


76 posted on 11/28/2007 1:38:55 PM PST by NVDave
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To: NVDave
Indeed the trend has been down but it is nothing close to what it was in the 70’s under the peanut farmer “Jimmah Cahtah”

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.

77 posted on 11/28/2007 1:51:02 PM PST by aroundabout
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To: dalereed
I recall commercial paper paying 21% (Int Harvester) AND not even getting a 1099 for the money made. It was all done through a bank which for some reason simply pooled all the money dedicated to commercial paper according to the paper they were buying and then used their own id number for tax purposes. This is how it was explained to me and I didn’t spend to much time worrying about it. After all earning 21% tax free would seem to come under the sort of gift horse one doesn’t want to look in the mouth
78 posted on 11/28/2007 2:05:43 PM PST by aroundabout
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To: aroundabout

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.


79 posted on 11/28/2007 2:17:57 PM PST by NVDave
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To: rightinthemiddle

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
http://www.youtube.com/watch?v=lLkkZbx9Vgw


80 posted on 11/28/2007 2:27:55 PM PST by familyop
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To: CharlesWayneCT
“Don’t mock them, If I just listened to those goldbugs half the time, I’d be a millionare.”

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.

81 posted on 11/28/2007 2:38:35 PM PST by Beagle8U (FreeRepublic -- One stop shopping ....... Its the Conservative Super WalMart for news .)
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To: rightinthemiddle

>> Work, save, invest, pay your bills, stay insured. Work is the key. Control your own destiny.

Well said.


82 posted on 11/28/2007 2:44:21 PM PST by Nervous Tick (Retire Ron Paul! Support Chris Peden (www.chrispeden.org))
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To: steve86

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.


83 posted on 11/28/2007 9:29:13 PM PST by Citizen of the Savage Nation
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To: RogerWilko
I've been hearing this guy on the top of the news every hour saying how investors aren't paying attention to the housing problems we have. As if trying to say...

"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)...

84 posted on 11/28/2007 9:34:18 PM PST by Citizen of the Savage Nation
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