Fed Cuts 3/4 pct

purch

:eek:

Too late as usual

This way EVERYONE LOSES

m_c_s

purch wrote: »

:eek:

Too late as usual

This way EVERYONE LOSES

Wow 0.75% is huge.
This is panicking.
And the market will now expect more (0.5%) next week when the FED meets again.
UK will have to follow next month.
What will happen to inflation:eek:

If the talk about Bank of China is true then expect further falls.
Volatility...we aint seen nothing yet.....

PauliPauli

Is it just me or do prices seems to be creeping up in all the shops (especially food), and in monthly essential spending??

There's just so much monies swilling in the UK economy (on the back of house price rises) with no REAL economy to back it up ... deflation ????

Walletwatch

m_c_s wrote: »

If the talk about Bank of China is true then expect further falls.
Volatility...we aint seen nothing yet.....

Hi

Pardon the ignorance, but what is news on the Bank of China?

Cheers
WW

dunstonh

The 0.75% could be seen two ways.

1 - an attempt to help stabilise things
2 - panicking and not using their heads.

The first one will do good the second will increase fears and create even bigger drops.

A single unexpected drop like that is more likely panic.

m_c_s

Walletwatch wrote: »

Hi

Pardon the ignorance, but what is news on the Bank of China?

Cheers
WW

Shares were suspended after a big drop on talk that they have exposure to sub-prime market and will announce a big write off.
This points to a major global problem. Lets hope its just talk.

Fella

Surely it's highly likely that the UK will follow suit & cut rates. Possibly a very good time to consider fixed-rate bonds?

(which I was anyway as it happens).

cheers
Fella

dunstonh

Surely it's highly likely that the UK will follow suit & cut rates.

Pound could do without that. Inflation could do without that. There are so many different strings pulling from different sides.

Possibly a very good time to consider fixed-rate bonds

I've been saying that for quite a while now. Yields look attractive and the lower risk end of the fixed interest funds have been showing good rises. Thankfully that has been offsetting a lot of the drops on the equity side.

purch

The 'Greenspan Put' won't be working this time

Asset prices are hyper-inflated already, and the poor consumer won't be 'bribed' into borrowing even more depreciating $$$ to prop-up the economy anymore

You can fool all of the people some of the time.........but you can't fool all of the people all of the time

jamesd

The Fed is probably trying to show leadership, among other things. Might also be interesting for US mortgage payers who have adjustable rate mortgages that are going to have their rates reset (formerly higher) in the next few months. If they reset lower that may be of significant value in addressing the basic credit problem by reducing defaults. Now's certainly the time to do it without people complaining too much about the Fed going too low to help them.

superstar_2

Halifax dropped the 6 months fixed rate by 1% overnight after this news!