Wednesday, October 08, 2008

Apparently if you act like a petulant 5 year old you get what you are begging for....

As predicted last night ("Today's drop will likely call their bluff and look for an intra-meeting cut soon. ") if you stomp your feet loud and whine loud enough apparently the powers that be will listen --- via bloomberg...

Fed, ECB, Central Banks Lower Rates in Coordinated Reduction
Oct. 8 (Bloomberg) -- The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented, emergency coordinated bid to ease the economic effects of the financial crisis.

The Fed cut its benchmark rate by a half point to 1.5 percent, the central bank in a statement. The ECB and central banks of the U.K., Canada, Sweden and Switzerland are also reducing rates, the Fed said in a statement.

Tokyo was down 9% overnight and Europe was trading down 5-10% before this announcement. Expect a pop, but frankly we might sell this news as well. The Fed Reserve is running out of bullets.

1 comment:

Anonymous said...

Yesterday I got a call from one of my banks assuring me that every thing was OK and encouraging me to keep my substantial cash savings with them with an offer of a "special rate" but a fixed time. I have this cash because I did not fall for the scams of the "financial advisors" and the George Bush administration. I did not trust the call and said not thanks and gave them no information.

Later, I called the local branch office and confirmed the call. It was legitimate.

Since that bank is a big "international" and foreign owned, today I transfered funds from them to a local bank that is independent, has assets, and no bad paper. Split in a way that most is insured. The call, alone, was sign of trouble.

Reagan's deregulation of S&L led to scams, Graham's deregulation of financials was a a scam, and the Bush bailout was a scam. Now the final blow is that the fed is lowering interest rates as the banks scammers try to convince customers that 1.5% is a good deal.

Today, an important wall street expert after opening bell encouraged people to leave their savings in the bank and laughed because people were running to the bank to take out only 2000. dollars. Well, Mr. Big Shot that is all they have and they don't trust you.

No more welfare for the rich. Take it and run. Let the greedy of Wall Street endure their little "adjustment".