U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-16-2008, 12:38 PM
 
Location: Great State of Texas
86,068 posts, read 74,781,320 times
Reputation: 27602

Advertisements

Lower than expected. There's no where left to run now that it's at 0.
Helicopter Ben needs to find some new rabbits for his hat.

Fed cuts target for key rate to record low - Yahoo! Finance (http://finance.yahoo.com/news/Fed-cuts-target-for-key-rate-apf-13846723.html - broken link)

snippet:
"The central bank on Tuesday said it had reduced the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October. Many analysts had expected the Fed to make a smaller cut to 0.5 percent."
Reply With Quote Quick reply to this message

 
Old 12-16-2008, 01:09 PM
 
18,353 posts, read 16,315,244 times
Reputation: 7154
Lets see. How much money will I make if I take a 1% "cheap" loan from a bank and invest it in something that will lose 20% over the next year?

Answer: Not very much at all.

Again, as I have said, who will go into debt?

What does game theory say about individual interest verse collective interest?

How will people as a whole borrow more when lending standards have been tightened? How will I get into the free buffet if I do not have a stamp on my hand?
Reply With Quote Quick reply to this message
 
Old 12-16-2008, 01:50 PM
 
Location: Austin
13,424 posts, read 7,644,541 times
Reputation: 15100
HappyTexan, They have one big rabbit to pull out of the hat....start the printing presses!
Reply With Quote Quick reply to this message
 
Old 12-16-2008, 01:57 PM
 
Location: Backwoods of Maine
7,256 posts, read 8,585,937 times
Reputation: 19679
Quote:
Originally Posted by texan2yankee View Post
HappyTexan, They have one big rabbit to pull out of the hat....start the printing presses!
Yep...that's about all they have left. And they'll use it, believe me!

Everybody all prepared for what'll be coming down the pike from this?
Reply With Quote Quick reply to this message
 
Old 12-16-2008, 02:00 PM
 
Location: Great State of Texas
86,068 posts, read 74,781,320 times
Reputation: 27602
And the stock market is rejoicing and up nearly 400 points on the announcement that the Fed cut rates to zero.
Reply With Quote Quick reply to this message
 
Old 12-16-2008, 02:09 PM
 
Location: Austin
13,424 posts, read 7,644,541 times
Reputation: 15100
Let's see if we are prepared? Everyone has taken a beating in their real estate portfolio, stock portfolio, job situations are tentative, unemployment climbing, credit is tight and not easing AT ALL due to interest rate drops, lack of credibility in rating agencies (Madoff et al), commercial real estate shoe still to drop, etc. Yeah, everything is just peachy because the market has rallied a few points. Woop, woop! I don't know about the rest of the country but NYC is zombie land these days.

Besides, wasn't this tried in Japan in the 90s? It turned out GREAT for them, NOT.

Last edited by texan2yankee; 12-16-2008 at 02:23 PM..
Reply With Quote Quick reply to this message
 
Old 12-16-2008, 02:23 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
24,639 posts, read 42,269,224 times
Reputation: 27009
Quote:
Yep...that's about all they have left. And they'll use it, believe me!
I'm sure presses have been running overtime for the past 2 months. They seem to be 'spending' fast, and it is going in the 'drain'.. I have a 'flushing' sound ringing in my ears.

Quote:
stock market is rejoicing
and where do we go from here?

They should have placed some restriction on 'spread', since we should be raking in about .0025% on our cash reserves and paying 5%+ for borrowing. Someone is getting fat, and his initials might be, H.P. or B.F. (or related friends)

Someone else is getting real skinny and their initials might be Y.O.U.

Watch for more rabbits coming out of the hat, they seem to be pretty good at drumming those up, I hope they are REAL good!
Reply With Quote Quick reply to this message
 
Old 12-16-2008, 02:28 PM
 
Location: US
1,189 posts, read 3,673,119 times
Reputation: 822
Quote:
Originally Posted by texan2yankee View Post
Let's see if we are prepared? Everyone has taken a beating in their real estate portfolio, stock portfolio, job situations are tentative, unemployment climbing, credit is tight and not easing AT ALL due to interest rate drops, lack of credibility in rating agencies (Madoff et al), commercial real estate shoe still to drop, etc. Yeah, everything is just peachy because the market has rallied a few points. Woop, woop! I don't know about the rest of the country but NYC is zombie land these days.

Besides, wasn't this tried in Japan in the 90s? It turned out GREAT for them, NOT.
Isn't that why they have no problem dropping the rate? They want to do anything they can to keep these housing prices propped up.
Reply With Quote Quick reply to this message
 
Old 12-16-2008, 02:36 PM
 
Location: Austin
13,424 posts, read 7,644,541 times
Reputation: 15100
Do you think commercial buildings will fill up because of this? Of course not.

I have decided to put my money into Alpacas. There has got to be a better return there than treasuries.
Reply With Quote Quick reply to this message
 
Old 12-16-2008, 02:36 PM
 
Location: Great State of Texas
86,068 posts, read 74,781,320 times
Reputation: 27602
Quote:
Originally Posted by J Arp View Post
Isn't that why they have no problem dropping the rate? They want to do anything they can to keep these housing prices propped up.
Actually it's not just about housing anymore J Arp. Everything is falling in value..a deflationary spiral. They are now trying to save the US economy.
It's way beyond real estate now.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top