How much will the Fed cut on March 18th?

[Awesomandy]

Usually, just before Easter, fund managers like to reduce their risks, and given the recent market situation, I'm guessing that they would be closing their shorts this week. Well, it's a bit of an educated guess, so please don't quote me.

 

[MRC & Co]

Well it appears Europe is pricing in a sharp Fed cut as I type.

 

[vishalt]

I really don't know if Bernanke is feeling confident, or deep down in his heart he is feeling like an idiot.

Inflation the US is OUT of control and lower interest rates have hardly spurred any growth - all though it takes time to feed into the economy only if inflation is maintained, which it ain't.

 

[wayneL]

Let the forest burn, it will grow back stronger than before.

Silly silly fed......

Another Austrian.

Unfortunately, modern economic theory is a load of b0llox which doesn't recognize natural cycles.

 

[sassa]

Well it appears Europe is pricing in a sharp Fed cut as I type.

European markets powering ahead and all futures gaining momentum.

 

[korrupt_1]

Was watching ABC Alan Kohler report tonight...

Two interesting charts...

1st is that the Aussie market has tanked 25% compared with theS&P 500 only 15%

2nd chart is that the FED is running out of ability to cut rates... soon the rate will be below CPI which is not good.

Mods: not sure if i'm allowed to post ABC TV charts? Are they copyrighted? If so, please remove them.

 

[MRC & Co]

European markets powering ahead and all futures gaining momentum.

Sure are, will be an interesting next couple days. If it closes higher, I would expect Tuesday open to follow on (based on historical probabilities), not sure if the Friday-Monday rule applies though after such a long break........

I thought sentiment and seasonality reasons would give us this bounce, interesting to see if it trumps all technical indicators.......

I will be sure to note in the trading diary the outcome either way it goes.

 

[overule]

And what will be the effect on market spreads if the Fed goes 100 basis points tonight?

Have a look at the European market. They are already reacting to what's coming!

 

[MRC & Co]

Have a look at the European market. They are already reacting to what's coming!

Might want to read up, already noted.

 

[overule]

Might want to read up, already noted.

You dont have to point that out.

 

[MRC & Co]

You dont have to point that out.

So why repeat?

 

[mayk]

and the better sense prevailed they cut it by only 75bp.

http://www.msnbc.msn.com/id/23680394/

 

[wayneL]

and the better sense prevailed they cut it by only 75bp.

http://www.msnbc.msn.com/id/23680394/

"only 75bp" LOL

Punters are disappointed too.... dittums.

 

[wayneL]

"only 75bp" LOL

Punters are disappointed too.... dittums.

Well they like it after all. LOL

FOMC days are always a bit of a laugh.

 

[mayk]

now , just hoping we break the previous tuesday record and go to +500 for DOW.

the main point was the fact that core inflation was not at levels feds were happy at. The cut was voted 8-2. So punters like the fact that they got a better deal.

In the end it is all about perception and confidance building measure. The news is as good as you preceive ( or spin it ).

 

[nizar]

So when the feds funds rate goes to 1%, is that when our markets will find a 2003-style bottom?

Coz thats what the rates were in 2003.

Thoughts?

 

[Aussiejeff]

Hahaha!

The Benny-Med Emergency team have given the Dead Cat a zap with their shock paddles..... see that poor ol' puddy-tat jump 'n twitch!

I wonder how long the mangy moggie's ticker can last a this rate?


LOL



AJ

 

[wayneL]

Hahaha!

The Benny-Med Emergency team have given the Dead Cat a zap with their shock paddles..... see that poor ol' puddy-tat jump 'n twitch!

I wonder how long the mangy moggie's ticker can last a this rate?


LOL



AJ

LOL!

I can't get the image out of my mind now... seriously funny! Poor puddy.

 

[Aussiejeff]

Hehe.

Dr Georgie Porgie also gettin' in on the Lifesavers act...

"GWB said (today) the Fed and the US Treasury Department were closely monitoring the situation in the financial markets that if further action were needed it would be done "in a way that does not damage the long-term health of our economy".

Read more of the Wise One's Words here:

http://www.news.com.au/heraldsun/story/0,21985,23400845-5005961,00.html

Rejoice, peoples of the World! It seems we have worried for nought - all's well after all!! The gloom is over and we can:

Buy, buy, buy stocks.
Buy, buy, buy goods.
Buy, buy, services.
Buy, buy houses.

Oooh.... I'm feeling all a'tingle with goodness.... thank YOU Mr President. You have made my day!


LOL

 

[nioka]

Rejoice, peoples of the World! It seems we have worried for nought - all's well after all!! The gloom is over and we can:

Buy, buy, buy stocks.
Buy, buy, buy goods.
Buy, buy, services.
Buy, buy houses.

Oooh.... I'm feeling all a'tingle with goodness.... thank YOU Mr President. You have made my day! LOL

Or did he say ;

Bye bye stocks
Bye bye goods
Bye bye services
Bye bye houses

Bye bye George B. Next thing he will be joining John H on a world speaking tour.