9 replies to this topic

[Frac_Man]

Just a thought today ..

[rkd80]

with fed futures suggesting a 100% it seems unlikely, but given that there is no question that he will cut - a no cut will be a ST disaster imo

[tommyt]

anytime something happens that virtually no one is expecting causes max counter move...but, its a low probability amigo.

[denleo]

If I was Chairman, I would not cut rates. However, I would cut Discount rate again. But there is a lot of pressure from politicians on the FED to cut fed funds rates. So, it depends on wheather Ben sticks to his opinion (no cut) or satisfy politicians. Denleo

[relax]

ben has no opinion - ben will do what the stock market tells him to this was shown on 8/17

[Sentient Being]

If I was Chairman, I would not cut rates. However, I would cut Discount rate again. But there is a lot of pressure from politicians on the FED to cut fed funds rates. So, it depends on wheather Ben sticks to his opinion (no cut) or satisfy politicians.

Denleo

denleo, What do you see as the long term consequence of the fed making cuts it shouldn't make? It seems to me that now Greenspan is more or less admitting that he had to big a cut for too long and helped create our present problems.

[zman]

If I was Chairman, I would not cut rates. However, I would cut Discount rate again. But there is a lot of pressure from politicians on the FED to cut fed funds rates. So, it depends on wheather Ben sticks to his opinion (no cut) or satisfy politicians.

Denleo

I agree ! The fed is not independent anymore...Politicians use them to get what they want...I did agree with greenspan when he said that he was shocked when bush said in his state of the union that rates must come down...they have lost the independence...not they are a political tool...maybe they always wee dont know...but soon as the politicians get involved run for the hills

[gorydog]

[quote name='zman' date='Sep 18 2007, 01:46 PM' post='315737']
[quote name='denleo' post='315732' date='Sep 18 2007, 12:22 PM']
If I was Chairman, I would not cut rates. However, I would cut Discount rate again. But there is a lot of pressure from politicians on the FED to cut fed funds rates. So, it depends on wheather Ben sticks to his opinion (no cut) or satisfy politicians.

Denleo

I think he would have telegraphed the message the market is getting it wrong if there was no cut planned. At least I assume so!!! I'm betting no .50 cut tho...

GD

[denleo]

Consequences of 25 or 50 point moves are minor IMO. I think it is more psychological than financial. And I also think small cuts have more effect on a short-term picture. Denleo

[toni]

I think the Fed wants to do something to help the ecomomy, but not give one iota of help to the hedge funds or the gunslingers on the money center banks trading desks After all these are the people who caused the problem. Don't know how the Fed can do that, but if the hedge funds and gunslingers on the banks trading desks can lose their bets and not pay the price for failure things will just get worse in the future. As for the "accredited investors" in hedge funds they don't really deserve to lose their shirts, but dumb money always seems to lose. They are no exception. Only fools believe they can get more than market returns without taking more than market risk. Risk & return are joined at the hip. It was inevetable that those fools chasing an illusive alpha that does not exist would have their money taken by hustlers. toni b