Fed orders emergency rate cut to 1.5 percent

Romania had the largest drop since the creation of the stock exchage here . They closed the transaction down , likely to stay closed for at least 2 days like this. Russia is also closed today . very strange , something is very very fishy here! I do not see the reason why things should go this way on a global scale- except that some elites want to bring everything to the edge of bancrupcy they "buy all" on cets to dollar..

reply to post by mrsdudara


On the wires when I posted. Bloomberg has it now.

well, even if the interest rate is 0% this is coordinated in such a way that the money will not hit the market. Who can actually go and take money with the 1.5 % interest rate? go find out who is eligible! This is an old trick - do not provide money on the market , and you create a recession. Where is the "FED" finding billions anyway ? well, they just type it in the computer. Who is the FED? hard question , even Wikipedia is not sure who is behind it. But the FED was privatised back in the 1913 , by fraud. Taken from the people, given to the elite share-holders. FED is not govt!

Federal Reserve System

This explains it somewhat . . . you will have to navigate thorugh the site to answer your various questions.

reply to post by anachryon

``To address upcoming borrowing needs and further enhance liquidity in the Treasury market, Treasury will reopen multiple securities which have created severe dislocations in the market, causing acute, protracted shortages,'' he said.

Treasury markets have been struggling with elevated numbers of transactions that don't settle properly, called failed trades or fails, in part because U.S. government securities have been in such high demand.

HOLY COW!!!!!!!

so..........where did the $700B come from then?????? If we dont have the money to cover these?

Originally posted by mrsdudara

HOLY COW!!!!!!!

so..........where did the $700B come from then?????? If we dont have the money to cover these?

Heh. We're $10 TRILLION in debt and fast approaching $11T. Do you think they ever had that money laying around in the first place?
It's all credit money anyway - just figures in a computer somewhere. It doesn't exist as paper or coins or gold or silver. Just numbers in a computer.

In related news, the response to the TEN YEAR bonds the Treasury is putting up for sale has been....lacking, to say the least. Who the hell wants to give the Treasury a 10 year loan for a tiny amount of interest??

reply to post by mybigunit


I am very confused...
Didnt the Feds just completely screw whats left of main street by cutting that 1/2 point?
Want inflation skyrocket because the dollar will get crushed?
Most of us do not give a flying fig about Wallstreet if we are going to lose our jobs and eggs shoot up $8.
They have been screaming for a rate cut and as far as I can tell everyone was against it because of inflation, making that cut just killed the middle class in the long run, right?
This is just my basic knowledge of Economics 101, can someone please explain this to me?
The positive talk yesterday about energy prices going down was short lived since oil said that they were just going to get in line with demand and not lower prices.
I am bewildered and confused and very worried about families like ours that DO live within our means, we cannot afford a huge price jump on necessities like food.

reply to post by SEEWHATUDO


We're now deeper into the crisis and interbank and bank-to-business lending has basically vanished. Huge short-term liquidity freeze-up. The rate drop is essentially hitting the panic button--shock treatment, cheaper money, to get lending going again. The economic impact be damned--they're fighting right now against cardiac arrest, basically.

Also, the inevitable deep recession that will come after this will depress inflation naturally--lower demand, lower prices. You're going to be seeing deflation in many areas, forget inflation.

Just got back online after a few hours, and man are we having a bumpy ride today. Down, up, down, up, down, up. My new prediction is: I'll be admitting to being wrong in the next 3 or so hours

reply to post by anachryon


Exactly Right, Ron Paul has been telling us for years that artificially low intrest rates encourage malinvestment. And like you said thats what got us into this mess to begin with.

Clueless

Posted by Don Rasmussen on 10/07/08
Last updated 10/07/08


www.campaignforliberty.com



Federal Reserve Chairman Ben Bernanke Tuesday signaled a readiness to lower interest rates in a dramatic shift to support an economy battered by a financial crisis of "historic dimension."

Continue reading.. www.cnbc.com...

Since cheap credit and over stimulation caused this financial meltdown, then obviously we need more cheap credit and more stimulation to fix it. So says planner-in-chief Ben Bernanke. Apparently the markets and the people are done buying this baloney. When Bernanke started his remarks today, the Dow was at -120. By the time he announced his willingness to cut rates; it had fallen to -300. The old paradigm has failed and beating that horse will only deepen the crisis.

Well as it turns out I wasn't that far off. Dow closed at 9,258.10. Something is bothering me though. What's up with the free-fall in the last minutes of trading? What had appeared to be a pretty solid trading session ended in very big slide. Could anyone explain or theorize about why that happened?

Have a nice day.

What people dont realise is that its all right cutting the rate to try and stimulate the market but anyone with savings will see their income slashed to nothing.

reply to post by Manawydan


In my opinion, the precipitous drop was a direct result of King Hank's little press conference at 3pm.

The Dow hopped all over the place for the 30 or so minutes he spoke, but all the while it stayed in the positive. At the end of his prepared statement he took questions, and that's where he made Gov. Palin's interviews with Katie Couric look coherent.

He literally stuttered and stammered his way through the Q&A session, but then some reporters started asking some hard questions about the bailout. At one point he said "...and some measure of patience from the American people as we create the most effective process possible" in response to the bailout. Create a process?!?? Shouldn't there already have been a process in place?

Another quote: "I need to learn more about the details of our plan, but we're doing what we can with our new authorities. And we not only have the authority, but we have a plan."

And another: "We don't have economic forecasts."
....the Secretary of the Treasury doesn't have economic forecasts? WAT.

So, yeah. Immediately after he was off TV, the markets fell like a rock.
You're doin' a heckuva job, Hankie.

Oh boy. I totally missed that entire thing. Spent the last two hours watching George Carlyn. I've figured what better time than now

Thanks for that report by the way. Much appreciated.

reply to post by anachryon

"an emergency interest rate cut of a half a percentage point to cope with the worst financial crisis since the 1929 stock market crash."

We need a REAL interest rate cut, a REAL war on terror, a REAL bailout. Just kidding folks. But this is REAL scary.

money.cnn.com...

Just a little while ago.

Investors at first cheered the move. They took out the funds they have been using for months to trade dollars and put them in stocks. Foreign stock indexes recovered, oil prices rose and U.S. stock futures soared.

But about an hour after the news, investors' mood changed and stocks and oil both fell sharply. Investors put their funds back into the perceived safety of the dollar.

The outlook is bad

I noticed on tickerforum that they were talking about how after the interest rate drop, the LIBOR was so inverted it was ridiculous.

I think once that was noticed the market reacted accordingly.

Originally posted by redhatty
I noticed on tickerforum that they were talking about how after the interest rate drop, the LIBOR was so inverted it was ridiculous.

I think once that was noticed the market reacted accordingly.

that's something to really think about...
the Central Bank of England cut their prime rate by the same .5%..
yet, the LIBOR rose to 5.35%
that's whacky

remember the LIBOR is what a lot of the American Alt-A mortgages are based on... & instead of going down when Englands & other European Central Banks prime rate was cut ... the LIBOR went up 1/4 or more.



next, the US Fed will have their scheduled 6 week FOMC meeting around 28 October, and the prime rate might get cut anothr 1/4 point?
or maybe not--- because of this world wide emergency rate cut of .5% on 10-8-'08.
Did any of youse think about the fact that the cabal of central banks decided after the stock markets in Asia fell 8-9-&-10%,
that suddenly the European and American central banks all decided to make an emergency .5% rate cut world wide??

that lack of action to save the Asian markets might just be the cause of a severe Rift between the banking elites, at least before friday close.



it all appears to have the organization of rats on a sinking ship

Anyone got any good basic links explaining the correlation of interest rates to markets and inflation? I sort of think I have a vague possible understanding of what's going on, but economics isn't really a strong point, I'd like to know more.

Also, yesterday I found this world market watch widget, when looking for pages where I can see the various markets all at once..

www.sanebull.com...