Fed rate cuts imminent- No recession?

Discussion in 'Trading' started by HedgefundTrader2, Jan 10, 2008.

  1. In an unusual move Bernanke bowed down and admitted Feds have to cut rates. The markets digested this with some skepticism. Saying rates will be cut and actually cutting them are two different things. But its sure helicopter Ben is ready to throw the towel after being behind the curve for a long time.

    One thing is certain, after all there won't be another recession in 2008. It must be very disappointing to GOLDMAN SACHS and short traders. With a Fed standing down and lowering rates there is no chance of having a recession whatsoever.

    I am really pleased at this announcement and I am going long.
  2. Div_Arb


    Wait a little while ans see how the markets digest all of this. Since we are pretty oversold, you would think the Dow would be up 500 points on news like this, but it's not. What is that telling you?

  3. Its not an actual rate cut, but a balloon floated by Bernanke to calm down stupid ass idiots into selling away for losses.

    The markets will zoom higher once the rate cut is in. I fought hard in another thread arguing why a recession is not a possibility and its a scarecrow thrown at retail investors by institutional investors.

    One thing is certain Feds may cut rates any day now...

    Better cover your shorts or get killed....
  4. man


    problem is the problem is too big not to do anything and
    too big to do anything useful. fight inflation, save the
    consumer, the financial sector and secure the US from
    being completely bought be china is ... not possible. plus
    it is election year. bernanke has the job you really really
    don't want to have.

    i guess the fed will try with all their might and fail this
    time to bail out the economy. but we are not at the
    bottom yet, it ain't time for distressed investing. you
    do that when blood is all over the street and not when
    rumour of future blood is all around ...
    these days i'd look for relative value trades. short consumer
    tech against long big financials with the idea that big
    financials got hammered already and consumer tech
    can't lean against the stampede for long.