Fed cuts rates by .75 today. Again!!!! - GoFuckYourself.com

UniversalPassLorence · 03-18-2008, 11:15 AM

I don't think it's a good idea to reduce and make money cheap to borrow, when most people and corporations have borrowed too much already. It will just prolong the problem and make people go in a deeper hole. But this is a drastic measure for drastic times.

http://www.gfy.com/showthread.php?t=...ht=rates+today

What do you think?

L-Pink · 03-18-2008, 11:18 AM

It also hurts those that have saved money.

GAMEFINEST · 03-18-2008, 11:24 AM

oh man oh man

pocketkangaroo · 03-18-2008, 11:25 AM

Just means the dollar is going to get shittier. But hey, the Wall Street guys can make some money so who gives a shit if gas is $5/gallon.

UniversalPassLorence · 03-18-2008, 11:25 AM

Quote:

Originally Posted by L-Pink

It also hurts those that have saved money.

Yes, absolutely. They are forcing you to spend your savings or get 1% annually on your savings.

farkedup · 03-18-2008, 11:26 AM

now whats the best way to take out a loan to repay all my credit cards I wonder...

When will this trickle down to US? been planning on refinancing my house and one this weeks cuts can make it to us sounds like a good time to

teomaxxx · 03-18-2008, 11:32 AM

you guys should burn the FED and hang all their wallstreet budies, since these rate cuts in face of high inflation are really insane and are only there to save their asses.

from someone else, simply said:
""Poor Ben can't understand that the US export economy can't make up for the losses in the financials and dropping rates to take away (or devalue through inflation) capital from the non-financial sector will only result in more unemployment and an even bigger recession""

Barrel of oil for 110 and they cut?
Their cuttings creates huge bubble in speculation against US dollar and in oil, therefore Joe six pack has to pay more for all imported things.

UniversalPassLorence · 03-18-2008, 11:35 AM

Quote:

Originally Posted by farkedup

now whats the best way to take out a loan to repay all my credit cards I wonder...

When will this trickle down to US? been planning on refinancing my house and one this weeks cuts can make it to us sounds like a good time to

I don't know if the 30 year mortgage will go down much. Yesterday it was about 6.375, but it could drop within few days. This will reduce equity lines, which are normally based on Prime.

L-Pink · 03-18-2008, 11:39 AM

Quote:

Originally Posted by L-Pink

It also hurts those that have saved money.

Quote:

Originally Posted by UniversalPassLorence

Yes, absolutely. They are forcing you to spend your savings or get 1% annually on your savings.

In five minutes I'm out the door to my mothers house ... going to help her with her investments. The stock market really isn't the place for someone that's in her seventies and in bad health ... a 1-2 % cd sucks also.
The state of Florida must be in a state of shock.

David - PG · 03-18-2008, 11:39 AM

It's necessary in the light of more stress in the banking system. Bear Stearns had to be bailed out Monday. Once big banks go bankrupt that will have devastating repercussions for everyone and the entire economy. Think credit crunch and potentially a decade of deflation a la Japan in the 1990s.

ADL Colin · 03-18-2008, 11:42 AM

Quote:

Originally Posted by UniversalPassLorence

Yes, absolutely. They are forcing you to spend your savings or get 1% annually on your savings.

Or move into other assets/investments.

Snake Doctor · 03-18-2008, 11:44 AM

What's ironic about this is that the stock market may actually close in the red for the day, because most people were expecting a full point cut.

It's amazing how much the financial markets are merely a perception game.

DateDoc · 03-18-2008, 11:45 AM

Quote:

Originally Posted by Snake Doctor

What's ironic about this is that the stock market may actually close in the red for the day, because most people were expecting a full point cut.

It's amazing how much the financial markets are merely a perception game.

The fed did not want to cut it a full point in one day. That is why they cut it a quarter point on Sunday.

https://gfy.com/13928677-post5.html

Socks · 03-18-2008, 11:47 AM

All these bail outs for poor people must make responsible people cringe they saved their money. They should just buy homes they can't afford, max out their credit cards and go bankrupt - smarter financial move at this point lol

ADL Colin · 03-18-2008, 11:50 AM

Quote:

Originally Posted by DateDoc

The fed did not want to cut it a full point in one day. That is why they cut it a quarter point on Sunday.

https://gfy.com/13928677-post5.html

Two different rates.
Discount rate was cut one quarter on Sunday.
Federal Funds rate was cut today

ADL Colin · 03-18-2008, 11:54 AM

Quote:

Originally Posted by ADL Colin

Two different rates.
Discount rate was cut one quarter on Sunday.
Federal Funds rate was cut today

My bad.

Discount rate was cut one quarter on Sunday.
Federal Funds rate was cut today 3/4 today and so was the Discount rate cut another quarter

Dave PSC · 03-18-2008, 12:05 PM

As usual a thread full of "educated" economists that don't have clue how the system really works at all

L-Pink · 03-18-2008, 12:08 PM

Quote:

Originally Posted by Dave PSC

As usual a thread full of "educated" economists that don't have clue how the system really works at all

Please enlighten us Mr. Buffett.

UniversalPassLorence · 03-18-2008, 12:10 PM

Quote:

Originally Posted by Dave PSC

As usual a thread full of "educated" economists that don't have clue how the system really works at all

I think the fed is shooting in the dark. It is not an absolute science. It is lots of guess work. This reduction might be good or it might be very bad for the future. They are not sure either.

Elli · 03-18-2008, 12:12 PM

CNN keeps interviewing people today who say "I know we probably couldn't afford the house we bought, but we did it anyway because we thought it was a good idea." Since when is buying things you can't afford to pay for a good idea? CNN is treating it like a sob story when these people clearly overextended themselves.

That said, I have tons of sympathy for people who ran into unexpected dire straights like loss of job or health and then found themselves in financial trouble that way.

Socks · 03-18-2008, 12:14 PM

Quote:

Originally Posted by Dave PSC

As usual a thread full of "educated" economists that don't have clue how the system really works at all

That same argument is what got Bush elected, and re-elected.

Just because people are in positions of power, or are "educated" doesn't mean their deductions result in the right play, based on 95193561959152 factors out of their control.

pocketkangaroo · 03-18-2008, 12:15 PM

Quote:

Originally Posted by Socks

All these bail outs for poor people must make responsible people cringe they saved their money. They should just buy homes they can't afford, max out their credit cards and go bankrupt - smarter financial move at this point lol

There is no bailout for poor people. The bankruptcy laws were changed in 2005 to make sure it's near impossible to file for it. The only bailouts we've had are for companies like Bear Stearns. The billionaires are being bailedout, not the poor people.

LeRoy · 03-18-2008, 12:18 PM

Yep we are heading for hard times. Maybe gas will be 6.00 too.

ADL Colin · 03-18-2008, 12:21 PM

Quote:

Originally Posted by Elli

CNN keeps interviewing people today who say "I know we probably couldn't afford the house we bought, but we did it anyway because we thought it was a good idea." Since when is buying things you can't afford to pay for a good idea? CNN is treating it like a sob story when these people clearly overextended themselves.

Yeah, personal responsibility and bad choices are being left out of the conversation more and more. The FED cut rates which made a housing bubble possible but not inevitable. We discussed housing on GFY in many threads back in 2002-2004. So many people said "housing prices always go up". When examples like the Tokyo real estate market were presented they said "That is japan, not the US". All the people I met who were buying and flipping condos in 2003 in Miami were making poor business decisions.

The financial institutions which made loans to people they should not have been made to are certainly taking it on the chin and deservedly so. also true that the speculators are being fairly taken down and the homeowners who purchased homes with rate resets they didn't understand. if you can't or don't understand a contract don't sign it. if you can't afford a loan don't take it.

Personal responsibility all around.

FreeOnes · 03-18-2008, 12:26 PM

I don't post here what I wanted to say

lol

Mutt · 03-18-2008, 12:32 PM

Quote:

Originally Posted by Dave PSC

As usual a thread full of "educated" economists that don't have clue how the system really works at all

and the Harvard educated economists have no more clue really than the armchair economists. Greenspan even admitted he had no idea what the hell the sub prime mortgages were about or the possible impact.

if it was simple as you imply it is for somebody who really understands 'how the system really works' there would be no mess to start.

ADL Colin · 03-18-2008, 12:34 PM

The dismal science

teomaxxx · 03-18-2008, 12:35 PM

Quote:

Originally Posted by David - PG

It's necessary in the light of more stress in the banking system. Bear Stearns had to be bailed out Monday. Once big banks go bankrupt that will have devastating repercussions for everyone and the entire economy. Think credit crunch and potentially a decade of deflation a la Japan in the 1990s.

It will only make things worse in the long run as his policy is causing squeezing of productive economy in order to restore currently unproductive economy
.Actually its necessary in light of stress to clear the whole system.
You dont restore trust, confidency and end credit crunch by further playing gimmy tricks with Level 3 assets, mark to model, rating agency bullshit, TAF window, etc.

from:
http://market-ticker.denninger.net/2...tion-mess.html

"Bernanke needs to decide whether he is going to address the willful regulatory ignorance emanating from The Fed and other banking system regulators or whether he prefers to have the credit markets seize up piece by piece, margin call by margin call, until we finally force into the open the institutions that are insolvent - the hard way.

Down the latter road lies a rerun of the 1930s or a Japan-like situation, with both being brought about by precisely the same sort of regulatory refusal to force market participants to face reality.

The bad news is that I fear that Bernanke has very little time left to get off his kiester as the market is choosing for him. He's wasted the last six months running the old Greenspam playbook but unfortunately this is not LTCM where you literally have one institution that got in trouble - this is much more serious as the we quite literally have all areas of the credit markets seizing up because trust has been destroyed.

What's worse, Bernanke and his Fed have destroyed confidence in our currency by willfully refusing to address the root cause of the problem and that is being reflected in the DX.

The irony of this is that the longer Bernanke fiddles with his bullcrap "rate cut" nonsense trying to shove more heroin at the junkie, the worse the dollar craters and the more inflationary pressure this puts back into the economy through higher import costs, with the most important of those being the energy complex! "

Its from blog, but that guy has been more right then 99% of CNBC.

Mr Pheer · 03-18-2008, 12:45 PM

now I can get a low-interest loan to buy gas with!!

woohoo

IllTestYourGirls · 03-18-2008, 12:50 PM

Now Greenspan is saying we may be entering a depression that will rival the Great Depression.

But keep printing those fiat dollars!

Quote:

Originally Posted by Mutt

and the Harvard educated economists have no more clue really than the armchair economists. Greenspan even admitted he had no idea what the hell the sub prime mortgages were about or the possible impact.

if it was simple as you imply it is for somebody who really understands 'how the system really works' there would be no mess to start.

aico · 03-18-2008, 12:53 PM

I just saw a Hudson truck, all loaded up with the Joad family, driving down the street.

teomaxxx · 03-21-2008, 07:42 AM

the point of Japan deflation has been just hit, money flew from financial system and they are hidding in short term US treasuries, see:
http://finance.yahoo.com/q/bc?s=%5EIRX&t=5d

to see context of whole situation:
http://finance.yahoo.com/q/bc?s=%5EI...=on&z=m&q=l&c=

Until the confidence is restored money will be hidding or will go somewhere else (long term US treasuries or go out of US), but not in US financial system

Quote:

Originally Posted by teomaxxx

Actually its necessary in light of stress to clear the whole system.
You dont restore trust, confidency and end credit crunch by further playing gimmy tricks with Level 3 assets, mark to model, rating agency bullshit, TAF window, etc.

from:
http://market-ticker.denninger.net/2...tion-mess.html

"Bernanke needs to decide whether he is going to address the willful regulatory ignorance emanating from The Fed and other banking system regulators or whether he prefers to have the credit markets seize up piece by piece, margin call by margin call, until we finally force into the open the institutions that are insolvent - the hard way.

Down the latter road lies a rerun of the 1930s or a Japan-like situation, with both being brought about by precisely the same sort of regulatory refusal to force market participants to face reality.

The bad news is that I fear that Bernanke has very little time left to get off his kiester as the market is choosing for him. He's wasted the last six months running the old Greenspam playbook but unfortunately this is not LTCM where you literally have one institution that got in trouble - this is much more serious as the we quite literally have all areas of the credit markets seizing up because trust has been destroyed.

What's worse, Bernanke and his Fed have destroyed confidence in our currency by willfully refusing to address the root cause of the problem and that is being reflected in the DX.

The irony of this is that the longer Bernanke fiddles with his bullcrap "rate cut" nonsense trying to shove more heroin at the junkie, the worse the dollar craters and the more inflationary pressure this puts back into the economy through higher import costs, with the most important of those being the energy complex! "

Its from blog, but that guy has been more right then 99% of CNBC.

03-18-2008, 11:15 AM	#1
UniversalPassLorence Confirmed User Join Date: Dec 2004 Location: Califonia Posts: 3,721	Fed cuts rates by .75 today. Again!!!! I don't think it's a good idea to reduce and make money cheap to borrow, when most people and corporations have borrowed too much already. It will just prolong the problem and make people go in a deeper hole. But this is a drastic measure for drastic times. http://www.gfy.com/showthread.php?t=...ht=rates+today What do you think? __________________ $25.00 PPS for $1.00 Trial Making Webmasters Money Since 1997 ICQ: 305090349

03-18-2008, 11:24 AM	#3
GAMEFINEST Make STACK$ Industry Role: Join Date: Nov 2006 Location: sexy time Posts: 14,438	oh man oh man __________________ Compound interest.

03-18-2008, 11:26 AM	#6
farkedup Confirmed User Join Date: Nov 2007 Location: Kalamazoo, MI Posts: 2,490	now whats the best way to take out a loan to repay all my credit cards I wonder... When will this trickle down to US? been planning on refinancing my house and one this weeks cuts can make it to us sounds like a good time to __________________ -- QUOTE ME IT MAKES ME FEEL SPECIAL --

03-18-2008, 11:39 AM	#10
David - PG Confirmed User Join Date: Mar 2004 Posts: 767	It's necessary in the light of more stress in the banking system. Bear Stearns had to be bailed out Monday. Once big banks go bankrupt that will have devastating repercussions for everyone and the entire economy. Think credit crunch and potentially a decade of deflation a la Japan in the 1990s. __________________ perfectgonzo.com

03-18-2008, 11:44 AM	#12
Snake Doctor I'm Lenny2 Bitch Join Date: Mar 2001 Location: On top of my soapbox Posts: 13,449	What's ironic about this is that the stock market may actually close in the red for the day, because most people were expecting a full point cut. It's amazing how much the financial markets are merely a perception game. __________________ sig too big

03-18-2008, 11:18 AM	#2
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,151	It also hurts those that have saved money.

03-18-2008, 11:25 AM	#4
pocketkangaroo Confirmed User Join Date: Jan 2005 Location: Chicago, IL Posts: 8,452	Just means the dollar is going to get shittier. But hey, the Wall Street guys can make some money so who gives a shit if gas is $5/gallon.

03-18-2008, 11:32 AM	#7
teomaxxx Confirmed User Join Date: May 2003 Posts: 2,734	you guys should burn the FED and hang all their wallstreet budies, since these rate cuts in face of high inflation are really insane and are only there to save their asses. from someone else, simply said: ""Poor Ben can't understand that the US export economy can't make up for the losses in the financials and dropping rates to take away (or devalue through inflation) capital from the non-financial sector will only result in more unemployment and an even bigger recession"" Barrel of oil for 110 and they cut? Their cuttings creates huge bubble in speculation against US dollar and in oil, therefore Joe six pack has to pay more for all imported things.

03-18-2008, 11:47 AM	#14
Socks Confirmed User Industry Role: Join Date: May 2002 Location: Toronto Posts: 8,475	All these bail outs for poor people must make responsible people cringe they saved their money. They should just buy homes they can't afford, max out their credit cards and go bankrupt - smarter financial move at this point lol

03-18-2008, 12:05 PM	#17
Dave PSC Confirmed User Join Date: Feb 2008 Location: Philadelphia Posts: 224	As usual a thread full of "educated" economists that don't have clue how the system really works at all __________________ www.pinkstarcash.com Our newest site!! www.glamurebabes.com Dave ICQ: 434741855

03-18-2008, 12:12 PM	#20
Elli Reach for those stars! Industry Role: Join Date: Apr 2003 Location: Vancouver, BC Posts: 17,991	CNN keeps interviewing people today who say "I know we probably couldn't afford the house we bought, but we did it anyway because we thought it was a good idea." Since when is buying things you can't afford to pay for a good idea? CNN is treating it like a sob story when these people clearly overextended themselves. That said, I have tons of sympathy for people who ran into unexpected dire straights like loss of job or health and then found themselves in financial trouble that way. __________________ email: [email protected]

03-18-2008, 12:18 PM	#23
LeRoy Porn Pusher Industry Role: Join Date: Jul 2007 Location: It's a dry heat Posts: 13,343	Yep we are heading for hard times. Maybe gas will be 6.00 too. __________________ JAPANESE CAMS AND CONTENT SITES Teams - leroy.rowland2 Telegram - @lroddd

03-18-2008, 12:26 PM	#25
FreeOnes Confirmed User Join Date: Jul 2001 Location: The Netherlands Posts: 3,400	I don't post here what I wanted to say lol __________________ The new FreeOnes! - AdultFilmStarContent - BabeGalleries and much more! - 1Strike Movies and much more! All powered by Xpressa

03-18-2008, 12:34 PM	#27
ADL Colin Too lazy to set a custom title Join Date: Feb 2001 Location: Tube Titans, USA Posts: 11,929	The dismal science __________________ Adult Date Link - $50 PPS starting NOW! -- good and JUICY! skype = "adultdatelink"

03-18-2008, 12:45 PM	#29
Mr Pheer Retired Industry Role: Join Date: Dec 2002 Posts: 21,299	now I can get a low-interest loan to buy gas with!! woohoo __________________ 2 lifeguards for Jessica

03-18-2008, 12:53 PM	#31
aico Moo Moo Cow Join Date: Mar 2004 Location: Washington State Posts: 14,748	I just saw a Hudson truck, all loaded up with the Joad family, driving down the street.