Posted on 01/22/2008 5:29:53 AM PST by Perdogg
Federal Reserve makes emergency rate cut.
(Excerpt) Read more at msnbc.msn.com ...
T’would be a perfect time for the White House to “suspend” all earmarks, saying now is not the time for such spending.
The ECB should NOT follow Bernake's panic-laden actions, which are rightly being panned this morning in all circles.
The Fed is the problem not the solution. Support Ron Paul. Let’s have real free markets. Let the market set interest rates instead of some quasi-government bureaucrats. Someone profits from the booms and busts of Fed engineered business cycles but most Americans suffer. Stop the madness.
Once I'm on the sailboat the noting else matters.
At this rate these clowns are going it will be literally 1% very soon, a la Japan.
LOL, that reminds me of a true story. I was visiting friends in Belarus about 10 years ago, and I wanted to shop for some presents to bring back. Officially, you are only supposed to shop with rubles, not dollars. So, I asked my friend to get me some rubles.
About $100 worth, I told her. I gave her 5 crisp $20 bills, and she returned with a large trash bag filled with money. It must have looked like a giant dope deal.
I found that I could only carry about $20 worth of rubles without having a bag. Later, the country restructured its currency 100:1 so it is more manageable.
I think this is only for the overnight lending rate between banks, not the prime interest rate.
CNN financial commentator basically said ‘there’s not enough consumin’ goin’ on out there.’
This rate cut is intended to cause Americans to spend more.
The futures are now LOWER than before the panic cut was announced. If Bernake had chilled out, he could have allowed the markets to try and rally off this, holding a rate cut in his quiver "in case" they didn't. If the markets sell off now, what can he do? He has shot his wad. Hopefully cooler heads will prevail, but the Bush-Paulson-Bernake show has so far been a bust.
I was going to get my rubles at a bank, but my friend said, "No, don't go to a bank. They will only give you X rubles for a dollar (the official exchange rate). Money changers will give you much more."
I was confused by their whole economy. Here's hoping we don't head in that direction!
The fed rate cut has nothing to do with mortgage rates, although the mortgages right now are pretty darn low. We are refinancing at 5.1% and our investment properties at 6.75. I remember the recession of the early 1980s when the mortgage rates were between 18 and 21%. Nothing was moving.
Maybe we can borrow some of Mugabe’s 10 million bills and just paste “dollar” over it.
“Got a wheelbarrow to haul your Georges around for a loaf of bread?”
That’s why they came up with credit cards...lol! Only kidding.
Maybe the Sun was using a substitute journalist for the holiday?
You're kidding right? Bush is telling congress to stop bickering and start spending as fast as they can. He wants to get another $150 billion spent before the lilies bloom.
Ruhh-Rohhh
Emergency?
Does that mean you missed something or you screwed something up?
Back during the Carter era I used to keep track of this "exchange rate."
ML/NJ
Seems this move was more to ease world market concerns than all else. Here’s an idea. If investors and governments around the world are so concerned that Americans will not be buying the goods they produce, let’s stop messing with the fed rate, scrap any plans for our government borrowing money for an economic stimulus package, and have all those other nation foot the bill of such a package. Would be nice to spend their money for a change.
Capitalism is utimately destroyed by credit bubbles, have fun while it lasts!
As I said : the futures were likely already factoring in rate cuts and soon. If Bernake had "chilled", I think futures would be reflecting yesterday's world markets. So we disagree. We'll see soon.
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