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fed to cut rates AGAIN

Discussion in 'Members' Lounge' started by Briansol, Mar 17, 2008.

  1. Briansol

    Briansol Admins Admin VIP

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  2. nootrac22

    nootrac22 Well-Known Member VIP

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    the fed is about to take it to the negative. I'm very worried about the economy.
     
  3. get_nick

    get_nick These snozzberries taste like snozzberries... VIP

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    the euro has us, the canadian dollar is beating us, the yen is closing in, we are fucked.
     
  4. Briansol

    Briansol Admins Admin VIP

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  5. chestercheeto48

    chestercheeto48 Senior Member VIP

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  6. nootrac22

    nootrac22 Well-Known Member VIP

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    and the country with the #1 trade status has there currency pegged to the dollar.
     
  7. Celerity

    Celerity Well-Known Member

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    BAH I was just gonna post that.

    The Federal banking commissions are WAY smarter than we are, the news is, some twice published talking head, or the Angel Dusted traders are.
     
  8. phunky.buddha

    phunky.buddha Admin with a big stick Admin VIP

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  9. tunercrazed

    tunercrazed HS Official Hippie

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    how about I just bend over and take it now....we're getting raped....
     
  10. Briansol

    Briansol Admins Admin VIP

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    and what happens? 3/4 of a point, and oil moves to $107.xx

    awesome.

    $5 a gallon next month. wait for it.
     
  11. get_nick

    get_nick These snozzberries taste like snozzberries... VIP

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    cool. the dow is up 360. the fed should do this every day. :huh:
     
  12. nootrac22

    nootrac22 Well-Known Member VIP

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    sure but the money you make off the DOW is worth less.
     
  13. get_nick

    get_nick These snozzberries taste like snozzberries... VIP

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    SAN FRANCISCO (MarketWatch) -- Crude-oil futures rose Tuesday to close above $109 a barrel as the dollar fell after the Federal Reserve cut its key interest rate by three-quarters of a percentage point, pushing up dollar-denominated oil prices.


    Crude oil for April delivery closed up $3.74, or 3.5%, to $109.42 a barrel on the New York Mercantile Exchange.
    The FOMC cut the fed fund rate, the rate at which banks lend to each other overnight, by 0.75% to 2.25%. The rate cut drove down the value of the greenback against other currencies. The dollar index, which measures the U.S. unit against a basket of major currencies, was last down 0.2% at 71.31.
    "The weak dollar has been a critical factor drawing in huge amounts of speculative investment into the energy complex, as a hedge against inflation and that can only continue if the Federal Reserve drops rates," said Michael Fitzpatrick, an analyst at MF Global, a futures brokerage.
    Crude prices, denominated in dollars, tend to rise when the greenback falls, as a weaker U.S. currency makes crude less expensive to buyers holding other currencies. It also eats into oil producers' dollar-denominated revenues and forces them to raise prices.
    Some analysts are expecting the Fed will further cut rates in the future, pushing the greenback lower and oil prices higher.
    "Interest rates need to continue to come down," said Darin Newsom, senior analyst at DTN, a commodities information provider. "The U.S. dollar will react accordingly, and that could help to support some commodities."
    If that happens, oil prices could touch $115 a barrel, Newsom said.
    On Monday, crude ended down $4.53 a barrel, its biggest daily loss in more than 17 years, on fresh concerns about the credit crisis and as traders unwound their bets that have pushed oil prices to a new high of $111.80 a barrel.
    "Energy was one of the commodities that fell sharply yesterday as investors sought to eliminate risk due to heightened anxiety in the financial sector and escalating concerns that the economy was sliding into a recession," said MF Global's Fitzpatrick in a note.
    Tuesday's better-than-expected earnings reports from Lehman Brothers Holdings Inc. (LEH: Lehman Brothers Holdings Inc however, temporarily soothed anxieties about the financial crunch. Stocks on Wall Street moved higher. See Market Snapshot.

    "Equities have moved higher overnight and so have oil prices as the panic mentality seems to be receding a bit," said Fitzpatrick.
    Also on the Nymex, April reformulated gasoline gained 15.58 cents to $2.66 a gallon, and April heating oil rose 6.95 cents to $3.1379 a gallon. April natural gas surged 31.4 cents to $9.414 per million British thermal units.
    The Energy Information Administration will report last week's U.S. crude inventories Wednesday. Analysts surveyed by Platts, an energy information provider, expect crude stocks to show a 2.3 million barrel build. [​IMG]
     
  14. totalburnout

    totalburnout Well-Known Member VIP

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    Oil was $110 and the dow was up 300 points as mentioned...

    You act as though interest rate cuts will immediately be the downfall of the economy. If the inflation comes, it will only be real pronounced a few months from now after an inflationary mindset, where people buy today because they fear the price tomorrow will increase, has set in.

    We certainly aren't there yet. The rate cuts aren't the problem, the problem will be hiking the rates back up when we see growth. Too slow and you see inflation, too fast and you stunt the growth of the economy and everything you just attempted to accomplish through rate cuts.
     
  15. Capt. Orygun

    Capt. Orygun Win the Day

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    this is a mess, somebody find allen greenspan

    in the meantime I'm investing in the American tourist industry
     
  16. Celerity

    Celerity Well-Known Member

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    Dow up ! The sky is falling !

    DOOM AND GLOOM !!! Bush's Fault !

    There, I said all I have to.
     
  17. totalburnout

    totalburnout Well-Known Member VIP

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    uhhh...

    Greenspan rarely did anything and when he did, he was behind the ball.

    Some argue that Bernarke is overzealous but many others think that he's doing the right thing. Jim Cramer is on downstairs right now, talking about the 10 reasons why we've finally hit a bottom and how this 420 point rally on Wallstreet is going to hold, in comparison to last week's 415 point rally that didn't hold.

    As I predicted in other threads, Google and Apple picked back up today. Get in while they're still cheap.

    Mastercard just hit $218/share today, almost reaching their high of $225. Yet, we still had doomsdayers and naysayers on here saying that Visa would drop from the $42 its debut (the same price that MA debuted at).

    Those three stocks, along with railroads, and Fannie Mae are all good stocks to be holding.

    Lehman Brother's just gained $16/share today and Goldman Sachs is up after everyone thought these brokers would be hurting after the Bear Stern's debacle.
     
  18. reckedracing

    reckedracing TTIWWOP VIP

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    Fannie Mae is a good stock to hold? News to me...

    and why do you fight everyone on this site?
    and i mean everyone...
     
  19. totalburnout

    totalburnout Well-Known Member VIP

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    You really need to pull your panties out of your pussy if you think this is fighting.

    Silver made a retarded comment about Greenspan, acting as though Bernanke has done such a piss poor job. I'm sorry that its his fault that there was no legislation limiting idiots from overleveraging themselves when refinancing their homes or purchasing new homes that they could not afford because of their subprime credit.

    Someone suggest an alternative for the Fed besides cutting rates to stimulate growth. Oh wait, give money back? Oh wait, thats already happening as fast as a bureaucracy as large as the US government can make it happen.

    Fannie Mae being a good stock to hold? Yeah, I'm sorry their $10billion in assets that they can leverage must be looking terrible at this point, especially when borrowing money is now on the cheap due to lowered interest rates. So you mean to say that they can take their $10billion in assets they have sitting around and borrow against this money, to invest in other securities, at a very low interest rate. ...sounds silly to me.
     
  20. reckedracing

    reckedracing TTIWWOP VIP

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    this is from Feb 28th

    and they have an unrealized loss of another $3.3 billion sitting on the books
     
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