The Fed cuts rates again

The Fed has cut rates yet again, among the most abrupt rate-cutting sprees in the modern history of the U.S. central bank. This is a big deal, and not totally positive for the dollar and the US economy, IMO.

WASHINGTON — The Federal Reserve cut U.S. interest rates by a hefty half-percentage point Wednesday as part of an aggressive effort to halt a sharp slowdown in an economy hit by a housing slump and a credit crunch.

www.reportonbusiness.com...

This will take care of that pesky recession the President has been denying all along. And all our foreign friends will be happy to see the dollar depreciated. Maybe now the Chinese will stop keeping their money depressed like we've been telling them. I'm sure this along with the tax rebate will fix the American economy pronto. It's really simple put more money/credit in the hands of people who are maxed out on credit and the recession will disappear. Our leaders are so smart and we're so lucky. "God bless us everyone."

Why does this news remind me of Slim Pickens falling out the bomb bay door and hootin and hollerin?

reply to post by polanksi


Yeah. The move is nothing but cosmetic and designed to keep the economy from going into a recession before the next election so the Republicans have at least some chance of getting in and doing more damage. Looking at other indicators, we see that the American economy pretty much stalled in the most recent quarter (0.6% growth). Meanwhile inflation is up more than expected (due to dollar depreciation), and the housing crisis keeps getting worse. Add to that Bush's unbeliveable request for anothet 70 billion to kill innocent Iraqis.

reply to post by polanksi


I could not stop laughing, love your post.

The cuts could not be more timely as the months numbers for the job report are due, also the bond insurance that have that big fart last week is about to do another fart again.

So the fed is making sure they will be ahead of the game and if we need another .50% in March they are more than willing.

Let's no worry about the dollar, its going to be replaced anyway.

Interesting reaction of the Dow Jones..
peaked with +1.5% and then fell back to close with -0.3%
Trust in the us economy and the stock marked isn't coming back with this heavy FED cut's and all the money they put in while at the same time denying a recession. But the dollar becomes less worth and less worth with every such action... where will this lead to?


[edit on 30-1-2008 by g210b]

Good old problem reaction solution.

Solution being the Amero and NAU this time around

reply to post by marg6043




Cannot recall seeing such a reaction like that before haha..

We where watching the markets right around when they announced the cut.. pissed me off royally.. in my business, at 4% we were ok.. because I could offer someone a better product at 5.85% .. but when the rates fall.. so do our products, so now I can offer someone 4.8% .... ooo.. so exciting im trembling. Bastards. Not to mention the numberless jack#% that think the markets will keep going up because the rate was cut.. so they keep their retirement funds in mutuals and stocks.. and not in secure products. Idiots. I stopped feeling sorry.. the next time someone comes into my office crying about loosing a few hundred from their pension fund, I can laugh in their face and tell them "I told you to get out". Stupid fed. Hope they eat their own words.

EDIT: Can someone please fix my stupid picture!!!!

[edit on 1/30/2008 by Rockpuck]

Rockpuck, interesting how the markets are play at whenever the interest rates are lowered, today still at the end we were back in the negative.

My daughter after unsuccessfully finding a job in her field after graduation she is now settling with a job at a bank with a very decent pay.

She is telling me that this week has been an increase of people pulling old saving bonds from accounts as back as the 70s people are cashing them out.

I tell you we are living very strange times lately.

Ironically, I make my money by taking peoples money from the banks and putting them with the corporation I work for. We offer better flexibility, probate-deferred on death, tax deferred on death and generally a higher interest then banks.. but if the rate keeps on lowering, we loose, the people loose, and the banks win.

It should also be noted, that a lot of people.. and I mean A LOT of people.. are loosing their pensions, their money they thought they where saving for retirement.. older people refuse to get out of the markets where they don't belong to begin with (talking middle and lower middle class) .. just... idiots.

Also..

The stock market does NOT reflect whether we are in a recession or not.. the stocks can keep going through the roof.. I don't care, because I don't have money in stocks, and neither does a vast majority of Americans (even less with significant amounts to make a difference) .. banks may be saved, stocks may rise.. but wages will not, spending will slow, people will suffer and inflation will rise far faster then pay increases.

Let the markets fluctuate, let them go up and down.

America is ALREADY in a recession.

Strange times indeed.

Is GDP still a valid yardstick to measure recession. What's a recession anyway - it depends on whether your an optimist or pessimist.

I fall on the optimist side.

Save an asteroid hitting the earth in 2012, all is not yet lost.

Bliss,

Bill Thuther.
www.conspiracygrimoire.com...