Dollar slides hard
bad news
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And will go down even further this week after 75-100 cut. What a fn mess we are in now.
would you not agree it is already being price in - 1 basis point..anything else the dollar rallies
i think there gonna cut 100 points b/c of 1. the Bear Stearns collapse and 2. to reduce speculation of other firms following pursuit of the liquidity crisis. u guys think this quarter, there are going to be bigger writedowns?
You actually think that they are going to be cutting the rate to 1.25? Are you out of your mind? What possibly prompts a rate cut of this magnitude?
yes a 100 points cut is the consensus forecast.
Consensus forecasts among who? I've heard predictions of 50 - 75.
SAN FRANCISCO (MarketWatch) -- Citigroup's U.S. economists said Friday they anticipate Federal Reserve policy makers will lower the fed funds rate by 100 basis points to 2% next week, from the current 3%, "and more cannot be ruled out." Economists led by Robert DiClemente said "aggressive action is needed to stabilize the financial setting."
1.25? slickmac, do some HW before criticizing others, futures have indicated 75-100 bps
Sorry - hate to come off as a newbie here, but what futures are you looking at that are indicating 75-100?
the fed is only going to make things worse. this is capitalism - let the losers go under. debasing the currency isn't going to solve anything
Letting banks (especially big ones like Bear) go under would cause widespread panic, which would cause the general public to withdraw their deposits, which would make even more banks insolvent and go bankrupt. I know we're headed towards a recession, but I don't want it to turn into a depression.
I fear it is too late. Markets and sentiment have already turned. Overnight reactions are good indicators.
Just hope the USD does not follow the path of the old DM.
damnn.. asian markets dont like this Bear Stearns-JPM crap. nikkei is down 515 points.
Hang Seng doesnt either. -1,139.87 Four digits.
It's the fed funds futures. Google is your friend if you haven't heard of that.
And will go down even further this week after 75-100 cut.
http://www.bloomberg.com/markets/currencies/americas_currencies.html
Has the Fed lost their mind? Did they lose sight of why this mess even happened in the first place? The only reason we're in this subprime mess is because of easy credit. Ease credit-subprime loans-tighten credits-massive defaults-ease credit. Rinse and repeat ad nauseam.
Ben Bernanke makes me sick.
"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-
Oh holy--the US has been on this path long before Ben. One can start with the trillion dollar plus war at the same time providing tax cuts... and just go from there.
Bush and Greenspan.
The Fed is WAY out of line. The economy is going into a recession no matter how much money the Fed prints to try to save it. All they're doing now is killing the value of our currency. This has never been an effective strategy in the medium to long term. Loose monetary policy is what got us into this mess in the first place. It's also not the Fed's business to be backing distressed securities (mortgages).
Why shouldn't investment banks be allowed to fail? Bear Stearns, in effect, did go under (equity was purchased for $2 a share). It was the top story on EVERY new channel. I'm not seeing the masses running to their bank branches to withdrawal their funds. Even if they did, their dollars are eroding by the minute ... haha.
If we don't want a depression we should let this recession run its course - it's going to either way.
If BSC would have 'gone under' gone under, if thats even possible... the financial markets would start toppling over like dominoes. As soon as BSC would fall, the next weakest link would be slammed by margin calls and follow suit. The fallout that would have ensued would have been far worse than the mkt today.
I think the driving force behind all this is sentiment in the financial markets. No one has any confidence, everyone is extremely uncertain... which is making the markets volatile and unstable, which is making everyone very uncertain...
if a major primary dealer failed, there would be chaos. crisis management: its not about the banks anymore, its about trying to lessen the impact on the broader markets or else your average american is fucked as well
i am not saying that bernanke and the Fed should just sit on the sidelines and do nothing. there is a fine line, however, between appropriate and harmful intervention.
in the end, the average american will pay for the mistakes of these banks. the economy is slowing and our currency is eroding. oil is at record highs. all of the recently published economic indicators are negative. recessions are part of the business cycle - flooding the market with liquidity is going to do little to restore confidence.
i'm not the only one who shares this view. the president of the dallas fed is also outspoken about inflation concerns. jim rogers, co-founder of the quantum fund, recently was on cnbc speaking about the same thing.
http://www.cnbc.com/id/23588079
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