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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: RogerWilko

What if the media wanted to have a recession but no one participated in it?


41 posted on 11/28/2007 12:52:26 PM PST by NeoCaveman ("On illegal immigration, Huckabee makes George Bush sound like Tom Tancredo." - Ann Coulter)
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To: NeoCaveman

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?


42 posted on 11/28/2007 12:53:54 PM PST by Obadiah
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To: Cowboy Bob

43 posted on 11/28/2007 12:54:21 PM PST by oh8eleven (RVN '67-'68)
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To: Obadiah

Well it was a rhetorical question but you did answer it correctly.


44 posted on 11/28/2007 12:54:39 PM PST by NeoCaveman ("On illegal immigration, Huckabee makes George Bush sound like Tom Tancredo." - Ann Coulter)
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To: Petronski

Rates are going down faster than your beloved Tribe did in games 5-7 of the ALCS!!!!

Hah


45 posted on 11/28/2007 12:54:39 PM PST by misterrob (Eleven down, Eight more til the Pats win the SB again.)
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To: NeoCaveman
They need things to be BAAADDD next year! Don't forget... We got an election and the Dumbacrats need to win!

We need a bad stock market and a bad economy and BY GEORGE... If we don't have one, we'll MAKE ONE UP!

46 posted on 11/28/2007 12:54:43 PM PST by RogerWilko
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To: oh8eleven

Pinch’s fault!


47 posted on 11/28/2007 12:54:59 PM PST by NeoCaveman ("On illegal immigration, Huckabee makes George Bush sound like Tom Tancredo." - Ann Coulter)
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To: Beagle8U

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


48 posted on 11/28/2007 12:55:05 PM PST by coloradan (Failing to protect the liberties of your enemies establishes precedents that will reach to yourself.)
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To: misterrob
Wow, trash-talk from a Boston sports fan.

That's . . . so . . . atypical.

49 posted on 11/28/2007 12:55:37 PM PST by Petronski (Reject the liberal troika: romney, giuliani, mccain)
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To: RockinRight; Petronski
Generally, the LIBOR follows the Prime rate but there is no direct correlation.

Especially since the LIBOR is the London InterBank Offered Rate.

50 posted on 11/28/2007 12:56:13 PM PST by Phantom Lord (Fall on to your knees for the Phantom Lord)
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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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