or Not 
With strong rumours of an emergency Fed rate cut next week
Started by
wallofworry
, Mar 15 2007 04:05 PM
5 replies to this topic
#1
wallofworry
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Posted 15 March 2007 - 04:05 PM
Emergency rate cut or Not
or Not
#2
traderpaul
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Posted 15 March 2007 - 04:15 PM
Emergency rate cut
Will the cut fix the problem?.....That is the question that you should ask.....
"Inflation is taking place now. Prices may not appear to be rising because they are making packaging smaller. "— Rickoshay
#3
nimblebear
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Welcome to the Dark Side !
Posted 15 March 2007 - 04:17 PM
Emergency rate cut
Wow! some rumor. I can only see that it would be a pyschological boost. But it would be not so good for the dollar.IMHO
I don't see how the Fed can lower. Inflation rising at rapid pace, yet economy slowing. Rock/Hard Place.
Edited by nimblebear, 15 March 2007 - 04:18 PM.
OTIS.
#4
arbman
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Posted 15 March 2007 - 04:35 PM
The subprime problems are not quite spreading to the prime lending businesses. Fed can not lower until they see a clear dollar destruction and that's not quite happening. All we are seeing is a deceleration in the money supply growth. That's still borrowing albeit at a slower rate, not a contraction. The stock market rallies when the money supply grows though, so the further correction argument stays with or without a strong bounce in the very near term...
#5
eminimee
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- TT Member
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I don't care who's fur is flying...
Posted 15 March 2007 - 05:18 PM
A rate cut would give us a repeat of Feb . 27th....only worse. 0 chance of a rate cut.
#6
fib_1618
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Posted 15 March 2007 - 05:50 PM
Agreed. You would first see monetary policy shifts at the FED's trading desk, and they seem to be tightening, if anything, over the last 30 days.0% chance of a rate cut
Fib
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