fed cuts by .75 key interest rate

pnylvr · January 21, 2008 10:30PM

Just heard on BBC world news. Panic by GWB?

UtahCoin · January 21, 2008 10:29PM

Going to be a very interesting day.

pnylvr · January 21, 2008 10:32PM

how did your message show up above mine original post?

rgCoinGuy · January 21, 2008 10:33PM

Yep, I guess they are finally waking up, it is going to be interesting, futures already make up half of their predicted losses...

UtahCoin · January 21, 2008 10:35PM

<< how did your message show up above mine original post? >>

I type REALLY fast...

Something about the time set on the individual servers (I think)

ttown · January 21, 2008 10:39PM

Yes it looks like the market is going to open deep into the red, it's already worse than you normally see it.

Pre-open market report

ttown · January 21, 2008 10:39PM

<< 

<< how did your message show up above mine original post? >>

I type REALLY fast...

Something about the time set on the individual servers (I think) >>

I've seen this before you can skip ahead of post if on this site you have your time zone set incorrectly.

ricko · January 21, 2008 10:44PM

Where did the information regarding a .75 cut by the Fed come from??? Cheers, RickO

ricko · January 21, 2008 10:45PM

Nevermind... just came over ABC... Cheers, RickO

ttown · January 21, 2008 10:46PM

<< Where did the information regarding a .75 cut by the Fed come from??? Cheers, RickO >>

Here you go:

Link on rate cut

ttown · January 21, 2008 10:47PM

Man they are predicting a 500 point drop on the open:

500 point drop?

I'd like to see the Fed hold this thing together for a few more years......

Wolf359 · January 21, 2008 10:55PM

<< Just heard on BBC world news. Panic by GWB? >>

Panic over what?

ttown · January 21, 2008 10:58PM

<< 

<< Just heard on BBC world news. Panic by GWB? >>

Panic over what? >>

Here's comments from Sinclair's web site but it's all over the web for the reading:

This Is It!
Posted On: Tuesday, October 23, 2007, 2:11:00 PM EST
Author: Jim Sinclair

Dear CIGAs,

Many of you have asked what exactly I mean by “This is it,” so here it is in point form:

There is a rampant, serious financial problem with terminal potential and no practical solution hidden just outside of the public’s view (OTC Derivatives).
Because central banks have gotten so out of hand and political which cannot be controlled by investors or the man in the street, we need to adjust our actions so that each person takes on the responsibilities normal to central banks for their own finances.
Everything we buy is getting more expensive and many assets people have, other than gold, are losing value. Because of this credit is not a proper idea regardless of the weak dollar for the majority of people reading this.
Major financial institutions, Internet financial entities and banks operate without transparency where their derivative holdings are concerned. Losses the financial institutions are publishing are considered by media as having extinguished all the risk. I do not believe this. I believe they are still marked to model, only the model is moving slowly towards reality of worthlessness.
There is an acceleration of bankruptcy among financial institutions. This translates to the individual needing to act as their own financial institution by having their share investments in paper form, gold in their close possession with no one in-between and available cash. The individual must be their own bank and central bank as one has failed us and both may.
The savings rate in the US is negative while the expansion of credit is totally over the top.
Business is turning south so the US Federal Budget Deficit will move up exponentially.
The US dollar has become a bombed out and lost battle zone. There is nothing good anyone can say fundamentally about the US dollar.
Non US entities are fed up with financing the US consumer and US Federal activities. This is clear from the recent TIC report, which is now down trending.
Financial privacy is non-existent.
There is a model for exactly what is happening now and that is the Weimar Republic. Name war retributions as OTC derivatives and you begin to see the picture.
The US dollar has now made a clear indication of the final head and shoulders; the massive formation from the absolute top is breaking down.
Number 12 is the item that impacts all of the above because of the dollar’s technical position now beginning to reflect the dire fundamentals. This is it

This is it because you now have to perform not only as your own bank but also as your own central bank. This is it because the US dollar has completed a major head and shoulders bear formation, pulled back to the underside of the neckline and thereafter declining below the major support line drawn from the beginning of the big dollar bull under Chairman Paul Volcker. Volcker made the dollar and Greenspan gave it all back to Asia.

The dollar break below the recent and most important major, major support line drawn from 1980 to now is the fundamental basis which will push Gold to $1650. The US dollar is without any doubt in my mind is going to .7200, followed by .6200.

Ladies and gentlemen, prepare to defend yourselves.

greghansen · January 21, 2008 11:26PM

Casino opens in a couple of minutes. Going to put a little money to work out of respect for the homage 'when its time to buy...you won't want to'. Cheers and good luck to all.

ttown · January 21, 2008 11:33PM

dropping fast started at 214 point loss and less than a minute this:

Did you know? You can set up your own watchlist of stocks to monitor, instead of typing them in each time. You can also receive the FRT Daily Summary which is your list of stocks via email every weekday. Click here to set it up!

DJIA 11,722.80 376.50

Nasdaq 2,224.81 115.21

S&P 500 1,288.58 36.61

Russell 2000 654.30 18.88

CBOE Volatility 35.13 7.95

30 Yr Bond 4.25 0.05

10 Yr Bond 3.54 0.11

5 Yr Bond 2.66 0.19

plansim · January 21, 2008 11:41PM

One of the main, if not the MAIN, cause of the crashing economy is the subprime lending meltdown.

This was caused by the lack of regulation and oversight by the pro-business, anti-middle-class administration.

People who think that there is too much "government regulation" are living in fantasyland, thinking businessmen are some kind of altruistic angels.

Now their drive for profits above all - in a world where competition is getting geometrically more intense and it is geometrically harder and harder to find a crumb of profit anywhere - have come home to affect everybody.

But don't worry about the businessmen. Their tax cuts will make sure they don't suffer.

lkenefic · January 21, 2008 11:44PM

...so.. neophyte question here... What happens when the Fed cuts the prime lending rate to 0? Will we [taxpayers] end up paying for bank transactions?

L

frostbyte · January 21, 2008 11:49PM

So when will gold go through the roof because of this or because it's world wide will it only drop in value?

WaterSport · January 21, 2008 11:49PM

People who think that there is too much "government regulation" are living in fantasyland, thinking businessmen are some kind of altruistic angels.

The situation is not funny, but your comment is making me laugh, because its so in your face absolutely CORRECT!

WS

Connecticoin · January 21, 2008 11:49PM

<< ...so.. neophyte question here... What happens when the Fed cuts the prime lending rate to 0? Will we [taxpayers] end up paying for bank transactions?

L >>

You have years of deflation like they did in Japan.

bluelobster · January 21, 2008 11:56PM

It's folly to think that just because the fed cuts rates the dollar will continue to drop. If the growth rate in the US starts to expand faster than Euroland, then it doesn't matter if rates are 2%....the dollar WILL strengthen, especially coming from a very low level vs the Euro.

cladking · January 22, 2008 12:58AM

The market normally opens and quickly approaches the level at which futures are.
In this case it was down over 500 points. But these lost primarily because of the
buying and selling in the rest of the world and they were concerned about their own
liquidity issues and lack of guidance from New York. They can operate wholly indepen-
dently but most major turns either begin in New York or are precipitated by events in
New York.

This may not be a very orderly downturn but if people panic there will be a lot of bab-
ies tossed out with the bathwater.

There will be many opportunities to make money by playing the markets long. Many
of the bull trends are still intact. Indeed, only one of the major trends may be the process
of reversing.

jessewvu · January 22, 2008 1:01AM

So, I was thinking about sending 10 American Buffalo Gold Proof coins back to the mint (or rather not accepting the package when they arrive) should I keep them? I bought them at 899 each.

rgCoinGuy · January 22, 2008 1:03AM

<< So, I was thinking about sending 10 American Buffalo Gold Proof coins back to the mint (or rather not accepting the package when they arrive) should I keep them? I bought them at 899 each. >>

That is a good price IMHO, they may be worth more than that when they arrive to your house, gold is actually up today.

Wolf359 · January 22, 2008 1:38AM

<< 

<< 

<< Just heard on BBC world news. Panic by GWB? >>

Panic over what? >>

Here's comments from Sinclair's web site but it's all over the web for the reading:

This Is It!
Posted On: Tuesday, October 23, 2007, 2:11:00 PM EST
Author: Jim Sinclair

blah, blah, blah. >>

The response didn't answer the question, it listed somebody's opinion article. Please try again.

droopyd · January 22, 2008 3:00AM

<< 

<< how did your message show up above mine original post? >>

I type REALLY fast...

Something about the time set on the individual servers (I think) >>

Why wouldn't the time posting be determined by the PCGS servers?

HonoluluDude · January 22, 2008 3:06AM

frostbyte · January 22, 2008 5:19AM

I know tons of people think a falling dollar will only help the rest of the world and our economy alone will faulter, but the fact is that if the US economy died, then more than likely the whole world would feel it as was seen this weekend.

PawPaul · January 22, 2008 7:39AM

......I`m buying ALL the Beenie Babies I can find ; if the U.S. economy go`s under -

i will be sitting on a gold mine !!!

roadrunner · January 22, 2008 7:49AM

A falling dollar is bad for the economy. Until rates are reversed and driven upwards to induce foreign
investment once again, things will not get better....only worse. The banks have essentiall killed the
economy, and it is not recoverable until lots of house cleaning occurs. And these "good deeds" by the FED
are just bailing out the banks, not Joe 6pack.

roadrunner

jmski52 · January 22, 2008 8:00AM

And these "good deeds" by the FED
are just bailing out the banks, not Joe 6pack.

Yup, that's about it. And as my home value goes down, I have the comfort of knowing that it's mostly my money that's disappearing, not the banks'. And as my stocks go down, it's my money that's disappearing, not the banks'. And as my retirement funds are stuck in an IRA and a SEP, the best I can do is buy an ETF or pick a market segment that will still be around after it's all over, even though the price goes down.

The banks? Why, they can mismanage and create paper that allows large bonuses for their top execs all day long. In the end, they never go to jail for malfeasance, although they should. And our Fed, the biggest boy's club around, sooner or later it's going to catch up to them. I hope that I'm around when it does.

cladking · January 22, 2008 8:23AM

<< A falling dollar is bad for the economy. Until rates are reversed and driven upwards to induce foreign
investment once again, things will not get better....only worse. The banks have essentiall killed the
economy, and it is not recoverable until lots of house cleaning occurs. And these "good deeds" by the FED
are just bailing out the banks, not Joe 6pack.

roadrunner >>

There's only one way out of a mess like this in modern times; inflate.

Back when most people lived on farms money and financial concerns
were of little importance. If things collapsed in a panic life would go
on. Now 1% of the population feeds the rest of us and food comes
out of the ground and from factories. Even farms are operated as fac-
tories.

Food supply has always been the determining factor of populations
even when it became less apparent as the industry became more ef-
ficient. The world not only runs on oil but also on a financial system of
which farmers and food factories are a key component. It's either fix
our financial system or scrap it and start a new one.

It's easier to fix the one we have by inflating. The more republocrats
we elect the more there will be to fix.

This is the only area in which we have a choice.

cladking · January 22, 2008 8:25AM

<< 

The banks? Why, they can mismanage and create paper that allows large bonuses for their top execs all day long. In the end, they never go to jail for malfeasance, although they should. And our Fed, the biggest boy's club around, sooner or later it's going to catch up to them. I hope that I'm around when it does. >>

The most maddening part is all the billions that are being and have been spread around to those who have created the mess. It will continue too as companies fail and golden parachutes deploy.

SFDukie · January 22, 2008 8:41AM

<< ...so.. neophyte question here... What happens when the Fed cuts the prime lending rate to 0? Will we [taxpayers] end up paying for bank transactions?

L >>

For a short time in the late 90s, there was effectively a negative interest rate for Japan. That was a special case due to deflationary concerns.
japan

roadrunner · January 22, 2008 9:49AM

Here's an article on how the banks and brokerages were able to remove some key controls on derivatives in 2001 along with the blessing of Sir Alan Greenspan....and then run amok:

Born to be wild

roadrunner

fed cuts by .75 key interest rate

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