What's the thinking on this? I'm thinking they let things fall today and assess the damage over the weekend. If it's bad, I wouldn't be surprised to see an emergency cut on SUNDAY of anywhere from 50bp to 100bp (gotta beat the Asian opening of course). I'm finally warming up to gold again. Soon enough we'll see bankers on street corners handing out dollar bills (dropping dollars from a helicopter is just silly).
Helicopter for sure.. passing them out by the handful seems so inefficient.. LOL. Interesting thought, though.... going long late today on anticipation of a big coordinated rate cut over the weekend... A bold play for sure.
even if the cut were to cut by 150 pasis points, it would be useless. Even by some ingenuity they managed to make the rates negative, useless. The prob is not liquidity, there is TONS of it. the problem is CONFIDENCE
A few weeks ago Nouriel Roubini called for the Fed to lower the Fed Funds to 0. While he used to be on the fringes, people are now listening to what he says. I have no doubt that the Fed will lower rates to 0.25 by the time this is all done.