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 ...
What if the media wanted to have a recession but no one participated in it?
Then the MSM would be crestfallen because their liberal Democrat brethren would not be assisted in the manner they had hoped for. Does that answer your question?
Well it was a rhetorical question but you did answer it correctly.
Rates are going down faster than your beloved Tribe did in games 5-7 of the ALCS!!!!
We need a bad stock market and a bad economy and BY GEORGE... If we don't have one, we'll MAKE ONE UP!
Let’s revisit the question in a year or two.
That's . . . so . . . atypical.
Especially since the LIBOR is the London InterBank Offered Rate.
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.