Tuesday, Mar 18, 2008
Anyone offering lessons in Dollar swimming?
Bloomberg.com: "Bernanke May Cut Benchmark Rate by Most Since Volcker"
"The severity of the crisis was underscored by the Fed's emergency action on the evening of March 16, the first weekend policy shift since 1979. A week ago, the debate among economists was whether the Fed would cut by 50 basis points or 75 basis points. Now, a reduction of 1 percentage point is seen as a sure bet among futures traders and some anticipate a move of as much as 1.25 percentage points. Either would be the deepest since Volcker's Fed lowered the federal funds rate to 10 percent from 11.75 percent in October 1984."
Uh oh - this is gonna be a heck of a wave of money...
Posted by trough2010 @ 07:27 AM (308 views) Add Comment
2 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. sold 2 rent 1 said...
If I had to guess how the week will play out. Fed cuts IR by 1.25-1.50pc. Banks still refuse to lend and IR cuts not passed on. Stocks crash either late this week or early next week. Remember since 1997 stocks are correlated with IRs. Therefore stocks will only recover once IRs hit rock bottom.
Slightly off-topic but here are some thoughts. I apologize for being off-topic in advance.
The Armstrong/Calleman/Lungold models show mathematics underlying life/evolution. The big question I have is just how much free will is left in the system. Having bounced the idea off a few friends the majority verdict seems to be "no". But then why create a 16 billion year evolutionary system that is predetermined down to the last sub-atomic particle? Why indeed?
The parallel universe theory which is gaining support could help here. In summary the theory says every decision you make splits the universe into 2. This would give the illusion that life is predetermined in a single universe but in the wider reality of the multiverse free will exists.
As we zoom to the moment of singularity in 2011/2012 we will experince more and more reality unravelling before our eyes. Maybe there is an Agatha Christie syle twist in the end where we realise we only thought we had free will and all along we didn't. Everything was predetermined all along.
2. sold 2 rent 1 said...
US M3 is heading down again. Can the US IR cuts create more money this time or will the banks just say enough is enough.
We are right on a knife edge now. Depression or hyperinflation are not far away.