7 replies to this topic

[Tor]

What happens then? Any thoughts anyone? Thanks. I think I am gonna take my time on my next trade....up of down.

[risktaker]

Our economy will go down the tubes. Housing market crash... Stock market crash... Depression...

[ogm]

Honestly, a rate cut will only have limited symbolic value at this point. But the reality is that the market is pricing in the apocalyptic scenario right now. Expectations for everything are getting waay too low. What scenario of the massive economic depression in the US you haven't envisioned in your head over the last couple weeks ? Will anything surprize you ? How about Housing prices up in Seattle, Portland, Dallas.... is that surprizing to you, or you thought the whole world has already ended ? From this point on there can be no negative surprizes. Only positive.

Edited by ogm, 28 August 2007 - 11:51 AM.

[thespookyone]

A cut was priced in as of last Friday, imho. If we don't get it-it won't be fresh.

[IYB]

....and what if the sun doesn't come up tomorrow? Or the seasons don't change, and it stays summer forever? "The inevitable march towards lower rates continues...."

Edited by IYB, 28 August 2007 - 01:23 PM.

[SandStorm]

I think at this point one 25 basis points cut in fed funds won't be enough. The market is already assuming that. We need two or a 50 basis points cut to support stocks.

[SandStorm]

Honestly, a rate cut will only have limited symbolic value at this point.

But the reality is that the market is pricing in the apocalyptic scenario right now. Expectations for everything are getting waay too low. What scenario of the massive economic depression in the US you haven't envisioned in your head over the last couple weeks ?

Will anything surprize you ?

How about Housing prices up in Seattle, Portland, Dallas.... is that surprizing to you, or you thought the whole world has already ended ?

From this point on there can be no negative surprizes. Only positive.

Everyone yells fire but few are actually selling. Markets still down just single digit even though we are facing the biggest risk factor since 911. The nagative fundamental is too obviously bearish to ignore.

Edited by SandStorm, 28 August 2007 - 02:12 PM.

[JAP]

I hope they cut 50 basis points, it'll make me feel really good about my recent 12 month, 30K CD that I locked in at 5.35%.