It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Fed orders emergency rate cut to 1.5 percent

page: 1
4
<<   2  3  4 >>

log in

join
share:

posted on Oct, 8 2008 @ 06:09 AM
link   

Fed orders emergency rate cut to 1.5 percent


www.msnbc.msn.com

The Federal Reserve has ordered an emergency interest rate cut of a half a percentage point to cope with the worst financial crisis since the 1929 stock market crash.

Fed Chairman Ben Bernanke and his colleagues ratcheted down their key rate by 0.5 percent, to 1.5 percent. The action revives the central bank’s rate-cutting campaign which had been halted in June out of concerns that those low rates would worsen inflation. Since then, however, economic and financial conditions have dangerously deteriorated, forcing the Fed to reverse course.
(visit the link for the full news article)




posted on Oct, 8 2008 @ 06:09 AM
link   
This is a move of desperation. The key interest rate is already far too low at 2%, and this will not help matters any.

The move comes after a disastrous day of trading in Asian and European markets, likely in hopes that a similar downturn will not occur during the day's trading in the US.

In my opinion, the rate cut is too little, too late. It won't cause banks to regain trust in each other; it won't restore consumer confidence; it won't make the average American feel better about the horrible losses suffered to 401ks. It's a desperate move, a last resort if you will.

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



posted on Oct, 8 2008 @ 06:12 AM
link   
Just in time, and coincidental to yesterday's announcement that they're going to provide loans to their cronies . . . er . . . businesses.

Go figure.

It is hard not to be completely jaded in these times.



posted on Oct, 8 2008 @ 06:13 AM
link   
While this is a good move in the medium term, in the short term it signals deep panic from the Fed. Expect the markets to slide.



posted on Oct, 8 2008 @ 06:15 AM
link   
This is a coordinated rate cut. Canada, England, Switzerland, Sweden, and the European Central Bank are also cutting rates by 50bp (.5%).

US futures are responding strongly to the news.



posted on Oct, 8 2008 @ 06:15 AM
link   
china just cut interest rates as well and swedens rik bank too.



posted on Oct, 8 2008 @ 06:17 AM
link   
Well, short term it has already changed the futures from -250ish to +150. I wouldn't be surprised to see the market open in the green only to take a massive dive by the end of the day. The fed is quickly running out of wiggle room.

This could start a panic.



posted on Oct, 8 2008 @ 06:20 AM
link   
Just so you all know, Australia's Fed cut our rates by a whole 1% today. It's happening everywhere. Although Australia seems to be controlling things...for now.



posted on Oct, 8 2008 @ 06:20 AM
link   
reply to post by anachryon
 


It cracks me up how this can ease the market. As if people out there are going "THANK GOD! Now that the rate is down to 1.5% the economy can get back on track. That was the root of the problem, 2% was just too high."

Why would anyone get excited about this? The fundamental problems haven't changed.



posted on Oct, 8 2008 @ 06:22 AM
link   
Euro markets reacted very sharply to the news with a strong bounce up.

US futures pop didn't last long. Dow went up to +200 for a little then dropped down to +55. Whoops, now +7.

Today will be telling.



posted on Oct, 8 2008 @ 06:28 AM
link   
Welcome to the bankers' version of the global economy's Going Out Of Business sale.

A year ago, the fed's rate was about five percent. It now stands at 1.5 percent.

Welcome to the sell off of our future . . . at a price lowered by 70 percent.

Tell me that the whole system doesn't stink like a rotting corpse.



posted on Oct, 8 2008 @ 06:30 AM
link   
The Fed capturing fresh turds out their arse with their own hands and attempting, lamely, to polish them off with women's hairbrushes.

Transparent.

"Green Frog skins," a wise old man named Lame Deer once said, "will be their undoing in the end."



[edit on 8-10-2008 by Cadbury]



posted on Oct, 8 2008 @ 06:33 AM
link   
reply to post by Cadbury
 


Yep, they are polishing that turd as much as physically possible, then rolling it around in some glitter and tying a bow around it.




posted on Oct, 8 2008 @ 07:00 AM
link   
ECB and the Bank of England will cut another .50% tomorrow.

We'll be 3% by Christmas and probably reach 2% by March (UK that is.) The Federal Reserve is considering ZIRP (Zero Interest Rate Policy), just like the Bank of Japan did during the 90s banking crisis.



posted on Oct, 8 2008 @ 07:02 AM
link   

Originally posted by dingleberry77
Just so you all know, Australia's Fed cut our rates by a whole 1% today. It's happening everywhere. Although Australia seems to be controlling things...for now.


All of the market gains yesterday were wiped out within minutes this morning on the opening of the ASX.

This is an act of desperation.

[edit on 8-10-2008 by mattguy404]



posted on Oct, 8 2008 @ 07:04 AM
link   
reply to post by mattguy404
 


As a fellow Aussie, do you see and feel any panic here? I see a bit but not as much as i thought. A lot of Aussies seem to be a bit glazed over at the moment.

Our rates have a long way to fall, so i guess there's not too much panic yet.



posted on Oct, 8 2008 @ 07:06 AM
link   
Seems like this is aimed more at the European Markets.

What I can't understand is if the Fed's announcement of buying up unsecured debt netted the market a -500 market fall, what the heck is a coordinated rate cut gonna do long term? Increase inflation?

Fed Announces Plans to Buy Short-Term Debt



posted on Oct, 8 2008 @ 07:08 AM
link   
reply to post by dingleberry77
 


Yes. This is the ASX post rate cut.


Consumer confidence, home loans dive

Consumer confidence plunged the most in more than two years, with the Westpac-Melbourne Institute consumer sentiment index diving 11%, or 10.2 points, to 82.0 in its October reading.

business.smh.com.au...

I think it just needs to set in when people start losing jobs...

Friends of mine who aren't quite up with affairs seem to be in la la land.


[edit on 8-10-2008 by mattguy404]



posted on Oct, 8 2008 @ 07:11 AM
link   
reply to post by mattguy404
 


Yep, my mates are in la la land too. You would have thought that we'd be up at least a handful of points after today, which makes that chart even scarier. I'm just thankful I pulled a lot out a few months ago.

The way it's going we'll have a straight three months of 1% rate cuts.



posted on Oct, 8 2008 @ 07:11 AM
link   

Originally posted by infinite
The Federal Reserve is considering ZIRP (Zero Interest Rate Policy), just like the Bank of Japan did during the 90s banking crisis.


Somehow I don't see that working. We need higher rates for long-term recovery, not lower. Too much credit got us into this mess in the first place!



new topics

top topics



 
4
<<   2  3  4 >>

log in

join