As Expected Coordinated Rate Cuts

I guessed that they would do coordinated rate cuts this week, although I said, 1% and they only cut .5%. This might give a temporary boost to the stock market, which is ready to rebound anyway after 5 down days. I doubt it will help much in the long term. The problem is not the availability of money, the Fed is handing money out to anyone who wants it. The problem is that the banks are hoarding money. This will give them more to hoard at cheaper prices.

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2 Responses to As Expected Coordinated Rate Cuts

  1. EJ says:

    An emergency .5% now and some people expect there to be another .5% on Oct 29th. Regardless if they do or not, once the market starts to go down again the Fed will have lost it “Mojo” with the rates as low as they are. Look at what happened to BOJ. It’s been at .5% and when it couldn’t participate in the “coordinated rate cut” last night the Nikkei lost 952 points. Looks like the the helicopter has been fired up and loaded and Ben is getting ready to take flight. What a joke.

  2. John Murphy says:

    LOL. I think you’re right. Bernanke has tried everything else, and nothing has worked. Time to dump money from the helicopters!

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