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

[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.

[Beagle8U]

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

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

[JFC]

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

Pathetic Bill Clinton out talking down our system

[steve86]

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

[RockinRight]

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.

[coloradan]

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)?

[rightinthemiddle]

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

[markman46]

bump

[rightinthemiddle]

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.

[rightinthemiddle]

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

[ghostrider]

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.

[dalereed]

“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%.

[steve86]

Six years later we hit an all-time high?

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

[rightinthemiddle]

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.

[VOA]

bump

[rightinthemiddle]

I congratulate you on your contributions to society.

[NVDave]

Bloomberg has a nice page with everything summarized:

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

[aroundabout]

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.

[aroundabout]

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

[NVDave]

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.

[familyop]

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