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Fed May Cut Rates as Crisis Deepens

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posted on Oct, 7 2008 @ 01:09 PM
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Fed May Cut Rates as Crisis Deepens


www.bloomberg.com


Federal Reserve Chairman Ben S. Bernanke signaled policy makers are ready to lower interest rates as the credit freeze worsens the outlook for U.S. economic growth and as inflation concerns wane.

Policy makers aren't scheduled to meet to consider changes to their benchmark lending rate of 2 percent until Oct. 28-29, and some analysts predict they will cut borrowing costs before then.

Bernanke has pushed the limits of the Fed's powers to create an array of unprecedented lending programs as the credit crisis spread from banks to securities firms, mutual funds, the biggest U.S. insurer and now corporate America.

Over the past week the Fed announced plans to pump an additional $1 trillion into the global financial system through auctions of cash loans to banks. That's on top of the central bank's $147 billion in loans to Wall Street bond dealers and $152 billion in lending to backstop money market mutual funds as of Oct. 1.
(visit the link for the full news article)




posted on Oct, 7 2008 @ 01:09 PM
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As this news was released, the stock market continued it's downward plunge. An interesting part of the article is:


The Treasury Department is making a deposit with the Fed's special purpose vehicle that is substantial, Fed staff officials said today. The funds won't come from the $700 billion rescue plan authorized by Congress last week, under which the Treasury will purchase distressed debt such as mortgage-backed securities. The Treasury program should, ``with time,'' help make credit flow and revive economic growth, Bernanke said today.


Okay, someone please tell me where is all this money coming from? If the Fed had a Trillion to "pump" into the market, why did congress have to approve $700 Billion?

Will we the people actually own ANYTHING when this is all over?

www.bloomberg.com
(visit the link for the full news article)

[edit on 10/7/08 by redhatty]



posted on Oct, 7 2008 @ 01:43 PM
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Originally posted by redhatty
Okay, someone please tell me where is all this money coming from? If the Fed had a Trillion to "pump" into the market, why did congress have to approve $700 Billion?


I've been thinking about this too. But hey, it's the Fed. The only hing they have to do is say "let there be money" and there it is. The dollar ain't backed by anything any more so it's almost that easy.

Regarding the $700 bn bailout bill. What if it wasn't really about the money. What if ( bear with me ) the 700bn was there just to piss us off and make us all talk about the money and it's those 450 pages that contain the catch? We all know there some pork in there, what if there's more to it?

Just a thought.



posted on Oct, 7 2008 @ 02:21 PM
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I love how everyone is saying "With time the market will correct". Yea no Sh*t! thats the whole point, it WILL correct regardless of how many billions of dollars were stolen from us by our so called government. They stole the money and are now saying because of our "groundbreaking intervention" the markets will correct theirselves. Horsesh*t.



posted on Oct, 7 2008 @ 02:32 PM
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Yeah it will bounce back . . . I'd hazard a guess that it would bounce back a lot quicker if the governement would keep their grubby paws off of it . . . the salient feature and saving grace (in the eyes of the house members) of the whole bailout was the additoin of $150 billion in patronage porkfat to get the damn thing passed.

How sad is that.

To save the financial system, they had to feather their own political nests.

No different from the fed buying short-term debt today either . . . robbing peter to pay paul, all under the guise of saving the economy.

More like saving their own portfolios.

Plus, they mess they've made jeopardized the pensions of the little guy. Like they even give a sagging rat's behind . . .they're locked in for golden parachutes when they 'retire' from politics and we're going to have to develop a taste for Dr. Ballards' and Purina (only on Sunday's though . . . that's pricey eatin').

Sheesh . . . now I'm getting more than just a tad perturbed.



posted on Oct, 7 2008 @ 02:55 PM
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Another sad day on the stock exchange. With 10 minutes to close, were looking into about a 4.5% drop on average. Financial sector taking the biggest hit in a reflection of what we've seen earlier in the day from the other markets.

The Australian market did rather well in the morning after they cut interest by 1%. I'd expect Fed going the same way before the weeks end unless we see a change of wind.

Edit: Ok, so I was a little early to comment. Last 10 minutes were even worse.


Kind regards.

[edit on 7-10-2008 by Manawydan]



posted on Oct, 7 2008 @ 03:05 PM
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If I am not mistaken, this is the 6th day in a row that the market has closed down.

And I'm talking DOWN, not double digits, but triple digits each day.

This is NOT a good sign at all. I am starting to think that there is no way to stop the global depression that is staring us in the face.

I'd still rather it happen now, instead of when my children are trying to establish themselves in adult life, and right now there are some good aspects in this, with commodities dropping and oil dropping we might just end up with a few weeks of prices dropping (then again, maybe not as businesses will need every penny) which will allow an opportunity to stock up on essentials before our money becomes nothing more than kindling.

Then I can put on my tinfoil hat and say this is all a huge orchestration to bring the world under the complete control of the bankers and create a cashless society that spans the globe.

Hmmm, funny how that doesn't sound all that far out there today.



posted on Oct, 7 2008 @ 03:08 PM
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The ppt supposedly has trillions to play with, so you would think some of that could be used.



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