Tuesday, September 18, 2007

Yeah! I got there first – Turn the taps on again!

Fed Lowers Rate to 4.75 Percent, First Cut Since 2003

The Federal Reserve lowered its benchmark interest rate by a half point to 4.75 percent, the first cut in four years, hoping to keep the U.S. from sinking into a recession sparked by spreading housing-market fallout.

Posted by tyrellcorporation @ 07:35 PM (780 views)
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7 thoughts on “Yeah! I got there first – Turn the taps on again!

  • tyrellcorporation says:

    Where’s the Dollar going? Oh, down the toilet!!!

    Shares have hit the roof!

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  • US equities markets are living in cloud cuckoo land. This is clearly a panic move by the fed and they are taking the risk of sparking a run on the dollar which would have dire consequences for the US

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  • Well done Tyrellcorp! you beat me.

    This cut won’t help the financial markets because the it doesn’t remove the problem of who holds the bad loans as result of this first phase of sub-prime chaos (wait till they increase those “teaser” loans). It may, however reduce some of the risk in owning assets.

    Neither will it stop the US economy from slowing, it takes months for IR cuts to work through. It will be harder to work through in this case because there is a glut of unsold homes.

    This, therefore, is only an opening bid, by the Fed.

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  • tyrellcorporation says:

    The significantly weaker dollar will be importing inflation – a self perpetuating downward spiral?

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  • This just goes to show, Greenspan really did not have a clue. He kept rates too low for too long and then had to increase them for 27 consecutive months. It was the 27 consecutive months that caused house prices to go bang and the sub-prime mess to develop.

    Greenspan allowed the US economy to gorge itself for way too long. Poor old Bernanke, he and Darling have a lot in common, both shit deflectors.

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  • Goodbye dollar Hello Inflation

    There I was thinking there was a liquidity crisis. Just can’t see anyone rushing to save those dollars now. Well at least the banks have no money to lend

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  • The Learned President Mugabe. says:

    Well I don’t see anything wrong with inflation.

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