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Fed Lowers Two Key Rates

Discussion in 'Off Topic Threads' started by pendennis, Jan 22, 2008.

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  1. pendennis

    pendennis Well-Known Member

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    All, this was just announced by the Federal Reserve:

    Press Release

    Release Date: January 22, 2008

    For immediate release

    "The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent.

    "The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.

    "The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

    "Appreciable downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.

    "Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Eric S. Rosengren; and Kevin M. Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S. Mishkin.

    "In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis."

    Both are huge cuts, considering the Fed has moved only 50 basis points (.50%)at the max in recent history. They usually move in only 25 (.25%) basis points.

    Best,
    Dennis
     
  2. midalake

    midalake Well-Known Member

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    I have been saying this for some time. The market is in for a bath!!! Investing rule 1 never try to catch a falling dagger...........

    GS
     
  3. lumper

    lumper TS Member

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    Strap yourself to your chairs people and see if you can hang on for the ride of your life this week ... dropping the way they have done is like sticking your finger in a dripping leak in Hoover dam.

    It's going to be more fun than ... than ... dang it aint gonna be fun or pretty at all and its time to see if we all can ride it like a cheap $20 all night fun time girl off the back streets of Thailand doing her best to wear us out and put us in the grave.
     
  4. halfmile

    halfmile Well-Known Member

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    Finger in the dike where a fist is needed.

    Repeal NAFTA first of all. Penalize outsorcing with tax breaks for 100% US companies. (John Kerry's wife's company - Heinz - has their headquarters offshore, what a patriot!) Get the borders closed and get rid of the illegals.

    People do not understand what a drain on our economy all the free services in health and education can be.

    There are other intrinsic costs, but education and health take the biggest hits. Just read recently where a couple hospitals in the Sun Belt are nearing financial collapse. Seems like in spite of lots of business they can't get money to pay their bills.

    HM
     
  5. Catpower

    Catpower Molon Labe TS Supporters

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    Inflation is tough, $20 buck for a pooh ying is high, was $5 when I was there
     
  6. rumplestilskin

    rumplestilskin TS Member

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    SELL!!! SELL!!! SELL!!!
     
  7. JDinTX

    JDinTX Member

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    Halfmile has said it best. Immigration and energy independence should at the forefront of every American registered voter. A repeal of nafta would be a good start HM. JD
     
  8. lumper

    lumper TS Member

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    NAFTA?

    Just what does the North American Free Trap Association have to do with the economy?
     
  9. JDinTX

    JDinTX Member

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    lol, Who's the president of that club and where is it at. JD
     
  10. Bocephas

    Bocephas Well-Known Member

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    Too little too late.
    The Dow has took a plunge this morning like 400 pts.

    Bo
     
  11. lumper

    lumper TS Member

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    Its going to be fun ride ... like being in a shootoff from the 28yard line using 5/8oz loads of #9 shot @ only 1100fps ... its going to be a fun time for the next couple of days/weeks.
     
  12. shannon391

    shannon391 Active Member

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    So they put some more duct tape on the stilts...
     
  13. lumper

    lumper TS Member

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    I would but have you seen what has happened to the price of duct tape recently?
     
  14. grammie

    grammie TS Member

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    The "smart money" will talk themsleves into believing whatever they want,,,,,and since a little hope,,and money is what fuels the market,,and since the feds again lowered rates,,,they will tell themselves,,"there is now breathing room,,,room to profit"!!!

    Now then,,,,to the real world!!!!

    Todays Story in the Arizona Republic---------tells how american buisness has gone to the Arabs,,,to the Muslims begging!!!!!!!! How Bush no longer has sway with OPEC!!!! Tells about the "billions" Citi-Bank received!!!!! Tells about the buyouts by Muslims of American Financial Institutions,,,and tells about the America you once knew was all for sale!!!!!!!

    Everything you grew up with is leaving,,,,,even the very chocolate you drank in the mornings as a little boy,,and still do!!!! They can't "afford" YOU,,,the American Worker,,,,the very people that made Hershey what it is,,are no longer needed!!!!!!

    Now,,,a 75 basis point drop,,,,A "further weakning" of the dollar,,,"Inflation" ready to take another big bite of "everything"!!!! American Business and Your Own President goes with hat in hand,,,,begging from the very people so many of you say we should-----"Kill them all"!!!! "A muslim is a muslim!!!!!! The very people you are at WAR with!!!!

    It now costs 2 cents to make one penny!!!!!!! Now put that same pespective on the "american dollar",,,,,,and watch the next 3 weeks!!!!!! Soon the American Dollar will go the way of the penny,,,,,,and when the "free trade" agreements finally kill off ALL american manufacturing,,,,nothing stands in the way of the "amero",,,,,the North American Union,,,,set up to counter its Asian,,and European counterpart in a CORPORATE WORLD of low wages,,cheap labor,,one check away from the street!!! Everything you make goes to simply put a roof over your head,,and food on the table,,,with a little left over to pay your other bills!!!!

    That is YOUR legacy to the next generation,,,the next several generations!!!! It all happened on YOUR watch!!!!!

    AKA Grammie............
     
  15. comp 1

    comp 1 Well-Known Member

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    Ain't it grand that the fed is bailing out the banks by lowering interest rates,yet the major credit card co.s can still charge you 19 to 30 per cent and 39-50 dollar late charges on your credit card accounts? I wish to hell I could get 19-30 per cent on my investments--how the hell can banks and credit card co.s lose money with returns like that?The fed says inflation will moderate in the next few months--BULLSH**t! I guess those poor c.e.o.s of oil co.s,financials and large cap co.s will have to tighten their belts when they only get about 100 million in bonuses this year. I'll take my 800-1600 dollar stimulus check when and if I get it,but it's a total slap in the face insult to my intelligence.
     
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