Federal Reserve makes emergency rate cut

MSNBC ^ | 01.22.08

[Perdogg]

Federal Reserve makes emergency rate cut.

[.cnI redruM]

Not well thought out. I’m afraid this won’t work as well as they want it to.

I see two draw backs.

1) A weaker USD
2) An appearance of panic in the face of the enemy.

[Delta 21]

Time to refinance the mortgage!

[RKBA Democrat]

We’ll see whether it works. I don’t like the fact that this Fed seems to do little other than react to the daily swings in the stock markets.

[HereInTheHeartland]

“my nephew is buying a house and had locked in on a rate - hopefully they will now give him the lower one”

If he asks they will.
Most of the loans that I have locked for people will get re priced before closing. I will do this without people asking me because they will go somewhere else if I don’t.

[Just mythoughts]

Is everybody going into disaster mode? What is going on? And what is causing this sense of urgency. There are no tax cuts on the table.

[AU72]

The Feds yo-yoing the Rate the last couple of years doesn’t inspire confidence.

[newnhdad]

That’s my initial thought too.

Attention passengers, we are now entering the Wall Street trading day... Please faster your seatbelts and make sure all items are secured because turbulence is expected.

[Severa]

And of course CNN’s Breaking News headline on their site is “The Fed, confronted with recession fears, cut a key interest rate by three-quarters of a percentage point today.”

[Bogie]

Another way to say that is “NO REAL RETURN TO INVESTORS!”

[mathluv]

'We're in a recession? Q2 was 4% growth, Q3 was almost 5% and Q4 will probaly be about 1.5%. What recession?'

The one the media and the dims want to blame on W. And use as an excuse not to make the tax cuts permanent.

I still think all of the concern about the economy is the worry of what a dim congress will or will not do.

[Rb ver. 2.0]

"LOWER THAT RATE AND PRINT-PRINT-PRINT MORE MONEY!"

[RDTF]

Thanks for the info - I just called and told him to do that

[Turbopilot]

[Toskrin]

Helicopter Ben strikes again!

[Alberta's Child]

I don't see this as an ideal scenario, but there's no doubt this rate cut will help. What's happening here is that they're trying to ward off a complete collapse in the housing market and massive defaults on mortgages by lowering rates to the point where people can renew or refinance their mortgages at low long-term fixed rates.

It's not perfect, but it may be the only thing that works here.

I'm actually sitting quite pretty here because: (a) I don't have a mortgage, and (b) I carry a commercial loan that is tied to the prime rate and will probably reach its contract MINIMUM soon (i.e., it can't go any lower -- and it's already ridiculously low for a commercial loan -- no matter how much lower rates go).

[Perdogg]

2 to 2.7% for the last quarter of 2007.

[RSmithOpt]

BINGO!!

So, will the Congress cut their spending just ask quick? Heck no! A lot of baby boomers have been working hard to get out of debt and invest into retirement. The government is screwing them at this time and ultimately their children and grandchildren.

[unixfox]

There are no tax cuts on the table.

Nor any SPENDING cuts. Go figure!!

[cake_crumb]

They really should have done this a couple of weeks ago. Now the Chicken Littles have prevailed and they made a run on the Market, thus guaranteeing a crash that might otherwise not have happened. Stupid, stupid people.

[Bogie]

Ron Paul would be proud of your “hard asset” approach, my son.