crazy 'surprise' rate cut talk...hello...FED mtg almost here

Discussion in 'Trading' started by increasenow, Jan 16, 2008.

  1. crazy 'surprise' rate cut talk...hello...FED mtg almost here...give me one reason the FED would 'surprise' us with a rate cut now and can't wait about 10 days...hello...lets get real all!!!...give me one real reason...
     
  2. Its been known to happen during other crises, namely 911, LTCM, the first gulf war, and numerous times in the Volker era. Why not for subprime issues?

     
  3. simply because we are 13 days away from the next FED day...would a 'surprise' cut make that big a difference with the FED mtg only 13 days away?...think not...no cut is coming...sorry
     
  4. What is this "make that big a difference" assumption you are operating on? What makes you think monetary policy has anything to do about making a difference. They may have other considerations they don't have to explain up front. Also, it would be easier for them to explain separate 50 and 25 basis point cuts rather than one 75!

     
  5. traderanon, increasenow is one of the village idiots. Just giving you the heads up.
     
  6. again...they think in the most rationale sense...'rationale' thought is...why do now with 13 days left???...makes no sense at all...they will not cut...history proves it...
     
  7. either way, sounds like a great reason not to enter the market
     
  8. The Fed's August move was perfect. Now, whether it was the right thing to do is another discussion, but they made their first surprise move (and cut) in years. It worked.

    This time, they've already waited to long. Should've done it after 1380 on S&P was touched first time to hold up trendline support. (Maybe they could care less about such things, but why did they come to the rescue in August just before the March low was taken out)?

    Would it work as well this time (new highs, etc.)? Probably not, but if they're going to cut, they might as well time it correctly.
     
  9. What's S&P got to do with it (if they think they're behind the curve)?

     
  10. The "August" part that I wrote. It's obvious the Fed intervenes at key levels sometimes....

     
    #10     Jan 16, 2008