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Rate Cut before the Rate Cut


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#1 skyymaster

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Posted 07 September 2007 - 11:01 AM

Since everyone and their brother is expecting a rate cut at the S18 meeting, I wonder if they are going to pull a fast one before hand. Market could rally until the meeting then sell off hard. The other option is for them to cut .25 in a suprise move today or next week, the market would then plunge and then they would cut another .25 or more on S18 after seeing what the reaction has been. VICE VERSA Just trying to think outside of the box since obvious is already out there. :P
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#2 ed rader

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Posted 07 September 2007 - 11:13 AM

Since everyone and their brother is expecting a rate cut at the S18 meeting, I wonder if they are going to pull a fast one before hand. Market could rally until the meeting then sell off hard. The other option is for them to cut .25 in a suprise move today or next week, the market would then plunge and then they would cut another .25 or more on S18 after seeing what the reaction has been. VICE VERSA

Just trying to think outside of the box since obvious is already out there. :P



wow what a difference a day makes. we had strong sales and OGM soft landing yesterday and today the world is ending again.

does what the fed do really make a difference?

i don't think so :lol: !

ed rader

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#3 skyymaster

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Posted 07 September 2007 - 11:21 AM

It sure does make a difference. Only when they create BUBBLES :D That is why they say, don't fight the FED or in this case the Bubble makers. The trick is you have to know when the bubble will burst. Greenspan said raising interest rates will not hinder the bubbles. So, let's look for the pin that will burst it :P

Edited by skyymaster, 07 September 2007 - 11:22 AM.

People should not be afraid of their governments. Governments should be afraid of their people.

Remember this day, men, for it will be yours for all time.

#4 ogm

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Posted 07 September 2007 - 11:22 AM

Since everyone and their brother is expecting a rate cut at the S18 meeting, I wonder if they are going to pull a fast one before hand. Market could rally until the meeting then sell off hard. The other option is for them to cut .25 in a suprise move today or next week, the market would then plunge and then they would cut another .25 or more on S18 after seeing what the reaction has been. VICE VERSA

Just trying to think outside of the box since obvious is already out there. :P



wow what a difference a day makes. we had strong sales and OGM soft landing yesterday and today the world is ending again.

does what the fed do really make a difference?

i don't think so :lol: !

ed rader



Nah, this is this a very panicy market. Easy to spook. Keeps discounting and discounting. if you look at 60 min chart of the bottom, so far we have pattern of higher lows, and each higher low is discounting something even worse then the previous one.

At the same time the pessimism is at historical highs. Crash calls all over the place. Bears all beared up again.


Here is the reality.. there is nowhere to invest your money except for stocks. Yes, you can buy some low yielding bonds. Or you can buy high dividend yielding stocks.

There was a lot of liquidity going into CDOs, CMO's and so on. The global growth is still there, so that liquidity is being generated in huge amounts. Stocks look like a very attractive alternative to bonds here. And there really are no other alternatives. You won't sucker anyone in CDO's for a long time now.

Bears will be hitting their head on the wall here for quite a while before they finaly realize they are screwed again.

Edited by ogm, 07 September 2007 - 11:31 AM.


#5 IYB

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Posted 07 September 2007 - 12:32 PM

does what the fed do really make a difference?

i don't think so :lol: !

:lol: And does the Fed really have any choice as to WHAT they do? I think not. Which rates they lower first or second, by what increments, and when for each-- these are just minor details in the sands of time. Does anybody really BELIEVE that they have a choice? D
“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds

#6 endisnear

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Posted 07 September 2007 - 12:43 PM


does what the fed do really make a difference?

i don't think so :lol: !

:lol: And does the Fed really have any choice as to WHAT they do? I think not. Which rates they lower first or second, by what increments, and when for each-- these are just minor details in the sands of time. Does anybody really BELIEVE that they have a choice? D


hehe...no kidding. Its like saying GW Bush is the most powerful man in the world.
Helo Ben is just a puppet and takes orders like everyone else. :bear: :bear: :bear:

long QID from low 42s