Do you think they will drop the rate a quarter point, a half point or do nothing but reduce the discount rate? Personally, I think there will be a quarter point drop, but am rooting for a half point drop.
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Do you think they will drop the rate a quarter point, a half point or do nothing but reduce the discount rate? Personally, I think there will be a quarter point drop, but am rooting for a half point drop.
the cut in the discount rate already re-liquified the credit markets...a cut in the fed funds rate will appease the market. it is NOT needed for the sake of the economy
i dont think they should do anything
the cut in the discount rate already re-liquified the credit markets...a cut in the fed funds rate will appease the market. it is NOT needed for the sake of the economy
I think this is actually a rather alarming case for bulls, not bears, in the intermediate term. It means they think things are much worse than they previously have indicated.But it will give a pop to the short term no question.
I think this is actually a rather alarming case for bulls, not bears, in the intermediate term. It means they think things are much worse than they previously have indicated.But it will give a pop to the short term no question.
The Federal Open Market Committee decided today to
lower its target for the federal funds rate 50 basis points to 4-3/4
percent.
Economic growth was
moderate during the first half of the year, but the tightening of
credit conditions has the potential to intensify the housing correction
and to restrain economic growth more generally.
Today's action is
intended to help forestall some of the adverse effects on the broader
economy that might otherwise arise from the disruptions in financial
markets and to promote moderate growth over time.
Readings on core
inflation have improved modestly this year. However, the Committee
judges that some inflation risks remain, and it will continue to
monitor inflation developments carefully.
Developments in
financial markets since the Committee's last regular meeting have
increased the uncertainty surrounding the economic outlook. The
Committee will continue to assess the effects of these and other
developments on economic prospects and will act as needed to foster
price stability and sustainable economic growth.
commenting on the bold:
this is ridiculous: for the Fed to think that a rate cut is all thats needed to save the housing mkt is a joke.
commercial paper and 13 wk tbills are different but the housing mkt is done because the buyers who pushed this mkt up are gone
companies will be able to borrow easier, but the home buyer and Joe Public will continue to have a tougher time
The Federal Open Market Committee decided today to
lower its target for the federal funds rate 50 basis points to 4-3/4
percent.
Economic growth was
moderate during the first half of the year, but the tightening of
credit conditions has the potential to intensify the housing correction
and to restrain economic growth more generally.
Today's action is
intended to help forestall some of the adverse effects on the broader
economy that might otherwise arise from the disruptions in financial
markets and to promote moderate growth over time.
Readings on core
inflation have improved modestly this year. However, the Committee
judges that some inflation risks remain, and it will continue to
monitor inflation developments carefully.
Developments in
financial markets since the Committee's last regular meeting have
increased the uncertainty surrounding the economic outlook. The
Committee will continue to assess the effects of these and other
developments on economic prospects and will act as needed to foster
price stability and sustainable economic growth.
commenting on the bold:
this is ridiculous: for the Fed to think that a rate cut is all thats needed to save the housing mkt is a joke.
commercial paper and 13 wk tbills are different but the housing mkt is done because the buyers who pushed this mkt up are gone
companies will be able to borrow easier, but the home buyer and Joe Public will continue to have a tougher time
KOAJ, one of my buddies does evictions and lock change outs for the banks on their foreclosures. He is steadily getting busier and busier. In South Florida, nothing is selling and prices are dropping like rocks. Here the taxes and windstorm insurance contributed to the housing problem. It's gonna take a lot more than this to fix the housing issues here.
KOAJ, one of my buddies does evictions and lock change outs for the banks on their foreclosures. He is steadily getting busier and busier. In South Florida, nothing is selling and prices are dropping like rocks. Here the taxes and windstorm insurance contributed to the housing problem. It's gonna take a lot more than this to fix the housing issues here.
Three cheers for Ben!!! IMHO, Rate cuts are not a cure all, but it is the right thing. Now if Bush Jr. ever wakes up and gets the vast majority of occupying ground forces out of Iraq and quits sapping hundreds of billions of dollars from the USA economy , our federal deficits will begin to subside, the dollar will begin to strengthen, and mild inflationary pressures like oil will begin to subside. If only there was a win/win solution for record trade deficits, all would be well. Throughout history, those who have the highest manufacturing output, enjoy the highest standard of living for their citizens.
Three cheers for Ben!!! IMHO, Rate cuts are not a cure all, but it is the right thing. Now if Bush Jr. ever wakes up and gets the vast majority of occupying ground forces out of Iraq and quits sapping hundreds of billions of dollars from the USA economy , our federal deficits will begin to subside, the dollar will begin to strengthen, and mild inflationary pressures like oil will begin to subside. If only there was a win/win solution for record trade deficits, all would be well. Throughout history, those who have the highest manufacturing output, enjoy the highest standard of living for their citizens.
This 50 pt cut actually DOES help the home owner, especially those with ARMs tied to PRIME or somthing other than the LIBOR. I dont know how the LIBOR slides with fed funds, I know there isnt a direct correlation..but even if it doesnt, this easing should lower high quality loan rates and those with the high ARMS could more easily convert into a fixed rate mortgage which COULD help..it isnt a cure-all but it is better for some.
Also, money market rates are going to drop..which sucks...
Here is a little comment, but an obvious one.
This 50 pt cut actually DOES help the home owner, especially those with ARMs tied to PRIME or somthing other than the LIBOR. I dont know how the LIBOR slides with fed funds, I know there isnt a direct correlation..but even if it doesnt, this easing should lower high quality loan rates and those with the high ARMS could more easily convert into a fixed rate mortgage which COULD help..it isnt a cure-all but it is better for some.
Also, money market rates are going to drop..which sucks...
I am shocked..a smart businessman takes a 5/1 ARM?
Actually I considered one a few yrs ago but bit the bullet and took a 1/8 higher rate for a fixed 30 yr.
I was going to pump and dump this last property. I wanted to hold onto the first 5 properties for a long time, but make some fast cash on the last one. So I didn't wan't to lock it up long and got a lower interest rate. The property did exactly what I thought it would. It doubled in price after 3 years.
But they announced and started building a huge lifestyle center, within a 5 minute walk from all of my properties. (Click here). So now I've decided to hold out for more profit. Also, the real estate market has a backlog of properties for about 18 months.
If I can get under 6%, I'm going to do it. It would be nice though to sell it and wipe out all of the business debt. I have no personal debt, so that's a huge bounus. Plus have a nice chunk to throw at another investmemt. But I'll be damned if I'm going to pay captial gains taxes at this point. And when I think about it, my business debt interest rates are so low for the next 10 months you would anyway.
Quote Originally Posted by wallstreetcappers:
Lippsman,
I am shocked..a smart businessman takes a 5/1 ARM?
Actually I considered one a few yrs ago but bit the bullet and took a 1/8 higher rate for a fixed 30 yr.
I was going to pump and dump this last property. I wanted to hold onto the first 5 properties for a long time, but make some fast cash on the last one. So I didn't wan't to lock it up long and got a lower interest rate. The property did exactly what I thought it would. It doubled in price after 3 years.
But they announced and started building a huge lifestyle center, within a 5 minute walk from all of my properties. (Click here). So now I've decided to hold out for more profit. Also, the real estate market has a backlog of properties for about 18 months.
If I can get under 6%, I'm going to do it. It would be nice though to sell it and wipe out all of the business debt. I have no personal debt, so that's a huge bounus. Plus have a nice chunk to throw at another investmemt. But I'll be damned if I'm going to pay captial gains taxes at this point. And when I think about it, my business debt interest rates are so low for the next 10 months you would anyway.
Anyone ever read a fascinating book entitled The Black Swan:The Impact of the Highly Improbable by Taleb? Thought provoking to say the least...and funny.
Anyone ever read a fascinating book entitled The Black Swan:The Impact of the Highly Improbable by Taleb? Thought provoking to say the least...and funny.
anyway. 
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