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a_european
08-17-2007, 06:59 AM
The FED just decreased interest rates from 6,25% to 5,75%.
It's likely more decreases will follow.
TheEvilDetector
08-17-2007, 07:20 AM
The FED just decreased interest rates from 6,25% to 5,75%.
It's likely more decreases will follow.

This is expected, they want to flood the economy with credit to relieve the symptoms of the current crisis.

However, this will not work this time around.

Hyperinflation will ensue and eventually dollars will be worth the same as toilet paper.
Cowlesy
08-17-2007, 07:24 AM
Well just so you know they cut the Discount Rate, not the Fed Funds Rate. It all leads to the road of Moral Hazard, meaning I can take unsafe bets because the Fed will come to save me.

I can't believe they gave into the screaming head Jim Cramer, those pansies.
Cowlesy
08-17-2007, 07:27 AM
Cutting the discount rate may have something to do with the LATimes basically saying that CFC has a run on the bank:

Anxious customers jammed the phone lines and website of Countrywide Bank and crowded its branch offices to pull out their savings because of concerns about the financial problems of the mortgage lender that owns the bank
a_european
08-17-2007, 07:29 AM
Thank you, i was too shocked to mention that it was the Discount Rate. I expected lower rates in September.
I think they had no choice, they need to save (time for) the big players.

Enjoy the inflation, the euro will follow.
Cowlesy
08-17-2007, 07:43 AM
http://www.dealbreaker.com/2007/08/fed_cuts_rate_at_discount_wind.php#more

Here is a good summary of what occurred.
ghemminger
08-17-2007, 09:57 AM
So what does this mean for the average folk...instead of my 9-5 , I shoulf be trading the market or speculating in Real Estate?
MsDoodahs
08-17-2007, 10:27 AM
:eek:

I am honestly surprised.

I did not think they'd give in.
constituent
08-17-2007, 10:27 AM
ghemminger...

why not? what's good for the goose...
Kregener
08-17-2007, 10:47 AM
Hyperinflation will ensue and eventually dollars will be worth the same as toilet paper.

You got it half right.

Dollars would make LOUSY toilet paper. Way too bulky and non-absorbent.

Toilet paper will be worth so much more.
G-khan
08-17-2007, 11:27 AM
http://goldismoney.info/web/plate.jpg (http://goldismoney.info/web/plate.jpg)
MsDoodahs
08-17-2007, 12:00 PM
lol!
ghemminger
08-17-2007, 12:03 PM
Classic!!!