Trooper_IHB
New member
LOVE IT !
-4K Non-Farm Payrolls is Greenlight for Fed to Cut
- Thread starter oc-conservative_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
effenheimer_IHB
New member
I'm there. REBALANCE NOW, BIATCHES!
IrvineCommuter_IHB
New member
I'm going with the Beazer and other homebuilders' mentality.
The reports of job loss are invalid and without merit. It has been trumped up by the media and all that is stopping people from buying house for $20 millions is the media. The fundamentals are still good and the bridges in New York are selling great.
The reports of job loss are invalid and without merit. It has been trumped up by the media and all that is stopping people from buying house for $20 millions is the media. The fundamentals are still good and the bridges in New York are selling great.
Orangeman_IHB
New member
<p>Ben has written quite a bit why the great depression lasted so long. Two mistakes that Ben says the Fed made stick out in my mind. 1) They raised interest rates. 2) They let banks fail. When Ben cut the discount window, he did not do it to save the stock maket, but to save Country Wide. (A bank). Actually, people focus to much on the discount window cut. It was items 2 and 3 that day that saved CountryWide. Allowing morgage debt from Fannie Mae to be used as collateral and the loan is now a revolving 30 day loan. </p>
<p>The maket has already priced in a rate cut. The market was expecting job numbers to be bad, about 30k to 50k jobs added. If the job numbers had come in that range the market would of rallied to the upside. However, the job number came in really bad. Now the market now must consider we may have a recession, so it sold off hard.</p>
<p>Before, the Job numbers came out, I thought for sure Ben would hold rates steady. Now, I think he will at least consider cutting 25 basis points.</p>
<p>The maket has already priced in a rate cut. The market was expecting job numbers to be bad, about 30k to 50k jobs added. If the job numbers had come in that range the market would of rallied to the upside. However, the job number came in really bad. Now the market now must consider we may have a recession, so it sold off hard.</p>
<p>Before, the Job numbers came out, I thought for sure Ben would hold rates steady. Now, I think he will at least consider cutting 25 basis points.</p>
profette_IHB
New member
<p>Here' an interesting way to look at the Fed's actions:</p>
<p>NEW YORK (Reuters) - Here's a secret: The Federal Reserve has already cut the fed funds rate.Yes, the Fed's target rate is still the same 5.25 percent it has been since June 2006, and the U.S. central bank has only formally cut the less-used discount rate on loans it makes directly to banks.</p>
<p>But going back to August 9, when global central banks started flooding financial systems with cash to prevent a complete shutdown of credit markets, the actual rate at which U.S. banks are providing each other overnight funds, the fed funds effective rate <USONFFE=>, has averaged just under 5 percent, according to Federal Reserve data.</p>
<p>That's equivalent to the 25-basis-point reduction in the fed funds target rate that many investors expect U.S. monetary policy-makers to announce at their next meeting on September 18.</p>
<p>NEW YORK (Reuters) - Here's a secret: The Federal Reserve has already cut the fed funds rate.Yes, the Fed's target rate is still the same 5.25 percent it has been since June 2006, and the U.S. central bank has only formally cut the less-used discount rate on loans it makes directly to banks.</p>
<p>But going back to August 9, when global central banks started flooding financial systems with cash to prevent a complete shutdown of credit markets, the actual rate at which U.S. banks are providing each other overnight funds, the fed funds effective rate <USONFFE=>, has averaged just under 5 percent, according to Federal Reserve data.</p>
<p>That's equivalent to the 25-basis-point reduction in the fed funds target rate that many investors expect U.S. monetary policy-makers to announce at their next meeting on September 18.</p>
IrvineCommuter_IHB
New member
At this point, I think the Fed rate cut is more psychological than anything. Even if the Fed cuts the rate by 25 or 50 basis points, it is unlikely that most of the "subprime" or "alt-a" borrowers will benefit. The stock people are screaming for a cut because they want the stock market to stay up, not because they care about the credit crunch. Heck, almost every other "analyst" out there keeps talking about how the only industry in trouble is the housing sector. . .
