Screw it. Yay's claim victory. Fed called Citigroup telling them they were gonna cut 1% next week. Just hit the wire. That's the Emergency Fed Action. Fed Fund Futures jumo on the news.
Something is very very wrong. Look at what the goverment and fed are doing thay are in panic mode overtime. Its just one lie after the other from wall street, and on a daily basis. The SEC said Wednesday We are reviewing the adequacy of capital at the holding company level on a constant basis, daily in some cases," SEC Chairman Christopher Cox told reporters on Tuesday after a news conference on greater cooperation with the Commodity Futures Trading Commission. "We have a good deal of comfort about the capital cushions that these firms have been on," he said. Bear CEO a few days ago said everything is fine. How can you trust anyone.
Well, no action yet. However I think it is a fair bet by early next week. I've picked up some cheap fixed income and Eurodollar calls just in case. The VIX had the highest close in 5 years, yet there wasn't really much capitulation. Joe 6 pick hasn't panicked yet. I have a feeling he might next week.
http://www.reuters.com/article/fundsFundsNews/idUSN1458852420080314 UPDATE 1-Citigroup sees at least 100 bps US rate cut Tues. NEW YORK, March 14 (Reuters) - Citigroup sees the Federal Reserve will lower the benchmark U.S. federal funds target rate by at least 100 basis points at its policy-setting meeting in a bid to stabilize financial markets, the bank said on Friday. "Strong consideration ought to be given to an even larger reduction," Citigroup economists said in research report titled "Clear and Present Danger." U.S. stocks fell sharply and bonds rallied on Friday in response to news that JPMorgan (JPM.N: Quote, Profile, Research) and New York Fed will offer financing to rescue Bear Stearns which has struggled under rising losses from its subprime mortgage exposure. This move "underscores the currently fragility of the system," Citigroup economists wrote in the report. Wall Street widely predicted that the Federal Open Market Committee will lower the fed funds target to at least 2.50 percent on Tuesday. Late Friday, U.S. interest rate futures implied traders are placing a 60 percent chance that the Fed would lower the benchmark short-term target rate 100-basis-points by Tuesday. (Reporting by Richard Leong)
LOL, CITI is the next one to go. But it is funny how they call for a 1% basis cut. Ben must have had T with them. GNOME......I HEAR YA BRUVA!
Congratulations Aaron! Every day you come onto ET and post the most absurd stuff . . . And once again today you showed how completely ignorant you are. The other day you asked if the FED could put a price-cap on crude oil, a GLOBAL commodity! Earlier today you stated that the market has been "clearly without direction" and "in a range this year". Now you post for the second time today the same "cut and paste" job that you posted earlier about the SEC and how it relates to Bear Stearns commenting that the CEO of Bear said everything was fine on Wednesday. First off, it was not the CEO of Bear that made those comments... it was the CFO Alan Schwarz who expressed confidence in the $17 Billion dollar "cushion" that the company had. You could at least get some of the basic facts correct. Moreover, it doesn't take very long for a "run on a bank" to take claim on $17 Billion. When counter-party trades don't get cleared a lot can happen in 48 hours. In fact, it can happen in less than 24 hours! But you don't understand this. You obviously have very little understanding of what is going on right now in the financial markets. Please do us all a favor and REFRAIN from posting anymore of your highly misinformed opinion until you take a few Econ courses and a Money & Capital Markets class. Thank You.
Go ahead cut it 100bps! Hell, make it 200bps! Pretty soon there's no more ammunition. And then what? Cutting won't do a damned thing at this point. Not a damned thing. Err...other than assure higher oil.