Fed cuts interest rate a third time

BrooklynBound · 12-11-2007, 11:08 PM

Let's hear it for recklessness. WOOOOO!!!!!!

[url]http://www.washingtonpost.com/wp-dyn/content/article/2007/12/11/AR2007121100128.html[/url]

sect112row36 · 12-12-2007, 09:11 AM

Its anticipated that another .5%-.75% is coming off over the next two meetings.

JetsCrazey · 12-12-2007, 10:31 AM

When the Fed cuts the rates and the market still goes down, you know its a precarious situation.

bitonti · 12-12-2007, 10:32 AM

this cut was not nearly as reckless as it could be

in fact the markets immediately took a downturn after announcement because it believe the fed didn't do enough to prevent a recession

so all you free marketers who think a recession would be good (or at least necessary), be careful what you wish for

JetsCrazey · 12-12-2007, 10:49 AM

[QUOTE=bitonti;2259727]
so all you free marketers who think a recession would be good (or at least necessary), be careful what you wish for[/QUOTE]

Theoterically speaking, whenever a market has had an asset bubble as we've had since 2002, there are only 2 ways to go:

1)Inflate the currency to keep the bubble prolonged, only delaying the inevitable downturn that must come.

2) Go through a recession now to get back to a natural, market-based level of credit.

bitonti · 12-12-2007, 11:26 AM

[QUOTE=JetsCrazey;2259757]Theoterically speaking, whenever a market has had an asset bubble as we've had since 2002, there are only 2 ways to go:

1)Inflate the currency to keep the bubble prolonged, only delaying the inevitable downturn that must come.

2) Go through a recession now to get back to a natural, market-based level of credit.[/QUOTE]

so yeah i agree... my post was to BB who said it was reckless to cut the rate. actually the statement pretty much guarunteed that your option 2 will come to pass sooner or later, it wasn't a reckless cut at all.

Jetdawgg · 12-14-2007, 12:08 PM

[QUOTE=bitonti;2259820]so yeah i agree... my post was to BB who said it was reckless to cut the rate. actually the statement pretty much guarunteed that your option 2 will come to pass sooner or later, it wasn't a reckless cut at all.[/QUOTE]

A recession now would virtually kill any republican chance at the Oval Office next year. The d's would use it like a battle axe (Hillary):yes:

jetstream23 · 12-14-2007, 12:16 PM

Recession is a technical term. We don't need 2 consecutive quarters of negative GDP growth in order for people to feel the pain. We could just as easily tread water around 0.5-1% growth for a long stretch and although it wouldn't be a recession it may feel like a recession to many.

Bill Gross thinks we see Fed Funds drop to 3% over the next 6 months. For once, I don't know if I agree with him because there are other levers at the disposal of the Federal Reserve. Their recent coordination with other banks in Europe, etc. to help relieve tight credit markets is one example.

BrooklynBound · 12-14-2007, 12:30 PM

[QUOTE=bitonti;2259820]so yeah i agree... my post was to BB who said it was reckless to cut the rate. actually the statement pretty much guarunteed that your option 2 will come to pass sooner or later, it wasn't a reckless cut at all.[/QUOTE]
If the recession is coming, it’s better to fight through it now then delay it and make it worse. The reason we are having a RE blowup is because the rates were artificially low in the first place. What’s the Fed’s solution? Keep cutting rates. Brilliant.

People will be hurt by the RE market and the overall public will be hurt indirectly as it filters through the economy. But we all lose much more but cutting the rates and increasing the money supply, which causes inflation for everyone and kills the dollar.

Jetdawgg · 12-14-2007, 12:47 PM

more bubble, more bubble, more bubble....

asuusa · 12-16-2007, 10:31 PM

[QUOTE=jetstream23;2263938]Recession is a technical term. We don't need 2 consecutive quarters of negative GDP growth in order for people to feel the pain. We could just as easily tread water around 0.5-1% growth for a long stretch and although it wouldn't be a recession it may feel like a recession to many.

[/QUOTE]

Is that why we got through the last 5 quarters of Clintonomics: .9% growth avg./quarter b/c of 3 quarters of negative growth? Funny, I don't recall anyone talking about recession back then! I wonder why?

PlumberKhan · 12-17-2007, 07:16 AM

[QUOTE=asuusa;2269737]Is that why we got through the last 5 quarters of Clintonomics: .9% growth avg./quarter b/c of 3 quarters of negative growth? Funny, I don't recall anyone talking about recession back then! I wonder why?[/QUOTE]

Because Clinton controlled everything back then. Even the Senate!

12-11-2007, 11:08 PM	#1
BrooklynBound Hall Of Fame Join Date: Jan 2005 Posts: 15,550	Fed cuts interest rate a third time Let's hear it for recklessness. WOOOOO!!!!!! [url]http://www.washingtonpost.com/wp-dyn/content/article/2007/12/11/AR2007121100128.html[/url]

12-12-2007, 09:11 AM	#2
sect112row36 All Pro Join Date: Dec 2003 Location: Somerset, NJ Posts: 1,572	Its anticipated that another .5%-.75% is coming off over the next two meetings.

12-12-2007, 10:31 AM	#3
JetsCrazey All League Join Date: Aug 2005 Posts: 2,676	When the Fed cuts the rates and the market still goes down, you know its a precarious situation.

12-12-2007, 10:32 AM	#4
bitonti searching Hall Of Fame Join Date: Apr 2003 Location: Philly Posts: 38,786	this cut was not nearly as reckless as it could be in fact the markets immediately took a downturn after announcement because it believe the fed didn't do enough to prevent a recession so all you free marketers who think a recession would be good (or at least necessary), be careful what you wish for

12-12-2007, 10:49 AM	#5
JetsCrazey All League Join Date: Aug 2005 Posts: 2,676	[QUOTE=bitonti;2259727] so all you free marketers who think a recession would be good (or at least necessary), be careful what you wish for[/QUOTE] Theoterically speaking, whenever a market has had an asset bubble as we've had since 2002, there are only 2 ways to go: 1)Inflate the currency to keep the bubble prolonged, only delaying the inevitable downturn that must come. 2) Go through a recession now to get back to a natural, market-based level of credit.

12-12-2007, 11:26 AM	#6
bitonti searching Hall Of Fame Join Date: Apr 2003 Location: Philly Posts: 38,786	[QUOTE=JetsCrazey;2259757]Theoterically speaking, whenever a market has had an asset bubble as we've had since 2002, there are only 2 ways to go: 1)Inflate the currency to keep the bubble prolonged, only delaying the inevitable downturn that must come. 2) Go through a recession now to get back to a natural, market-based level of credit.[/QUOTE] so yeah i agree... my post was to BB who said it was reckless to cut the rate. actually the statement pretty much guarunteed that your option 2 will come to pass sooner or later, it wasn't a reckless cut at all.

12-14-2007, 12:08 PM	#7
Jetdawgg All Pro Join Date: Aug 2004 Posts: 6,718	[QUOTE=bitonti;2259820]so yeah i agree... my post was to BB who said it was reckless to cut the rate. actually the statement pretty much guarunteed that your option 2 will come to pass sooner or later, it wasn't a reckless cut at all.[/QUOTE] A recession now would virtually kill any republican chance at the Oval Office next year. The d's would use it like a battle axe (Hillary):yes:

12-14-2007, 12:16 PM	#8
jetstream23 recovering from turf toe Jets Insider VIP Join Date: Dec 2005 Location: Phoenix, AZ (New Jets Stadium Section 246) Posts: 31,730	Recession is a technical term. We don't need 2 consecutive quarters of negative GDP growth in order for people to feel the pain. We could just as easily tread water around 0.5-1% growth for a long stretch and although it wouldn't be a recession it may feel like a recession to many. Bill Gross thinks we see Fed Funds drop to 3% over the next 6 months. For once, I don't know if I agree with him because there are other levers at the disposal of the Federal Reserve. Their recent coordination with other banks in Europe, etc. to help relieve tight credit markets is one example.

12-14-2007, 12:30 PM	#9
BrooklynBound Hall Of Fame Join Date: Jan 2005 Posts: 15,550	[QUOTE=bitonti;2259820]so yeah i agree... my post was to BB who said it was reckless to cut the rate. actually the statement pretty much guarunteed that your option 2 will come to pass sooner or later, it wasn't a reckless cut at all.[/QUOTE] If the recession is coming, it’s better to fight through it now then delay it and make it worse. The reason we are having a RE blowup is because the rates were artificially low in the first place. What’s the Fed’s solution? Keep cutting rates. Brilliant. People will be hurt by the RE market and the overall public will be hurt indirectly as it filters through the economy. But we all lose much more but cutting the rates and increasing the money supply, which causes inflation for everyone and kills the dollar.

12-14-2007, 12:47 PM	#10
Jetdawgg All Pro Join Date: Aug 2004 Posts: 6,718	more bubble, more bubble, more bubble....

12-16-2007, 10:31 PM	#11
asuusa All Pro Join Date: Jun 2004 Posts: 1,171	[QUOTE=jetstream23;2263938]Recession is a technical term. We don't need 2 consecutive quarters of negative GDP growth in order for people to feel the pain. We could just as easily tread water around 0.5-1% growth for a long stretch and although it wouldn't be a recession it may feel like a recession to many. [/QUOTE] Is that why we got through the last 5 quarters of Clintonomics: .9% growth avg./quarter b/c of 3 quarters of negative growth? Funny, I don't recall anyone talking about recession back then! I wonder why?

12-17-2007, 07:16 AM	#12
PlumberKhan HAIL SATAN! Hall Of Fame Join Date: Feb 2006 Location: Van down by the river Posts: 21,081	[QUOTE=asuusa;2269737]Is that why we got through the last 5 quarters of Clintonomics: .9% growth avg./quarter b/c of 3 quarters of negative growth? Funny, I don't recall anyone talking about recession back then! I wonder why?[/QUOTE] Because Clinton controlled everything back then. Even the Senate!