Friday, Sep 21, 2007
Rate cut potential diminished
Reuters: US STOCKS-Inflation fears end rally, sending stocks down
Even markets are starting to question whether the economy will benefit from rate cuts. Rates could charge towards 0.5% again, but expect hyper-inflation and more bubbles if the fed go that way.
Posted by planning4acrash @ 09:30 AM (294 views) Add Comment
3 Comments
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1. dugmug said...
So it's taken 2 days for those stock-market whizz-kids to realise that a lowering of the interest rate wouldn't actually make everything better after all???!!!
Why do these people get paid so much money, please tell me? There's more brains in my big toe.
2. dohousescrashinthewoods said...
Sweet irony - Fed cuts rates to boost speculation. Speculators speculate in company shares. Shares depend on company performance. Company performance depends on the economy. The economy is damaged by inflation due to he rate cut.
the alternative view is that Wall Street needed to cut losses and make a buck to cover some bad trades, so pushed the Fed to cut rates because that would provide a predictable move in prices across the board. Now they have their cash, they can settle up and let the market go.
Who knows the true balance between corruption and incompetence. These guys don't seem as dumb as their actions would imply. Presumably there is more to it.
3. alan said...
If the fixed rate "teaser" loan goes up from 6% to 11%, then lower IRs set by the Fed will make no difference to those who are locked in. But of course Ben knows that.....
Have you guys been watching the TV programmes about the human tragedies in Cleveland Ohio?