What the hell does Bernanke & Co. mean by "all available tools"?

Discussion in 'Economics' started by saliva, Dec 17, 2008.

  1. First of all, how large was the rate cut? Everwhere I look, I only see the same ol' headline that reads "Fed Cuts Rates Near Zero." Well, no shit Sherlock! It was already at 1%. What did you exactly expect? So did the Fed slashed the interest rate by 50 or 75 basis point?

    Second, just what the hell does the Fed mean by using "all available tools" to fight the current recession. I want to know the specifics other than all the speculative bullshit that I hear on CNBC. They're fast running out of ammunition, not to mention that both TARP and TALF ain't working, so what more can they do to stimulate this bleeding economy.
  2. asap


    they slashed 75 to 100 bp.

    they are going to buy treasuries with both hands to inject liquidity along with keeping the fed funds rate at virtually zero for as long as it takes. this is what they mean by "all available tools". in other words, the printing press is now out of control.
  3. [​IMG]
  4. Did the Fed cut 1% or .75%

    Well, now we can tell using effective fed funds and Fed fund futures

    January contract trading at 99.82 so the fed cut 82 bps to .16%, or near zero. Effective fed funds is around .18%

    Target is anywhere from 0 to .25% so it legitimizes effective fed fund trading range.
  5. 9999


    Latest available tool:

  6. Daal


    thats just the Fed using language trying to keep people from panicking
  7. I don't EVER remember the Fed rate as being stated as "near X%". It's always been 25 BP or 50 BP, blah blah. What kind of crap is "near zero"? So was it 50 or 75 BP?

    BTW, don't trust your hard-earned money with these government morons, who doesn't give much fuck about the economy at large but will bend backwards for the stock market. Even as a trader, that's a real fucked up proposition.
  8. Dude, why would you say 50 bps. C'mon, do you have any reading comprehension skills? It was essentially a 1% cut to zero as the Fed will tolerate a range between zero and .25% on the effective fed funds rate.
  9. "what the hell does Bernanke & Co. mean by "all available tools"?"

    I think they are refering to themselves, "all available tools". :D
  10. That's funny. "Tools"? Congress, now there a box of tools. :D
    #10     Dec 17, 2008