They have pretty much told us they will not cut rates again at the next meeting. Unless data turns worse, particularly the November employment report, they should not cut rates. The market however seems to be expecting or demanding a rate cut. I was (very) surprised by the 50bp cut. Maybe I will be surprised again.
No cut. Same as above poster. Hopefully no rate cut should prime a last round of selling before a real bull rally. I just wish these AAA subprime tranches would go to 0 already so no more bad news can hit the markets.
^ I would have agreed than I started hearing this stuff out of the blue. Nadler's Nuggets: An emergency Fed meeting? By Jane Louis 20 Nov 2007 at 09:14 AM St. LOUIS (ResourceInvestor.com) â In this morning's update, Jon Nadler of Kitco Bullion Dealers said spot gold gained $12 to open at $788.50 per ounce following speculation that the U.S. Federal Reserve will call an emergency meeting: "Bullion prices staged a more robust recovery overnight, as rumours of an emergency Fed meeting swirled in the markets and as the U.S. dollar took a fresh nosedive against the euro. Crude oil prices gained more than a dollar, climbing towards $96 and lent a helping hand to gold's first solid bounce in four days. Participants remain on alert for fast-changing conditions as the market is thought to still have a negative bias that could have it conceivably breach $750 in the not too distant future. Trading is expected to wind down in the latter half of today's and during most of tomorrow's pre-holiday sessions. "New York spot gold opened at $788.50, gaining $12.00 and offsetting Monday's losses but resistance emerged just above $790 as the Fed meeting rumor started to lose traction in various market circles. Additional dollar-negative sentiment came to gold's assistance as speculation mounts about a possible OPEC switch in oil pricing away from the US dollar and into a valuation based upon a basket of currencies." ==== Asian Markets Rally Off Lows on Rumors of Emergency Fed Meeting 11-20-2007 07:20:01 AM More General News Asian markets rallied sharply off their lows, to close positive, on rumors the US Federal Reserve would call an emergency meeting to cut interest rates. The Hang Seng closed up 1.1%, after recovering more than 1,300 from the lows. The Shanghai index also recovered from the lows, closing the day 0.5% higher. Many market participants dismissed the Fed talk, but traders say the rumors could have driven shorts to cover their positions === CNNMoney Forex - Dollar falls to new euro low as rumours swirl ahead of FOMC November 20, 2007: 04:33 AM EST LONDON, Nov. 20, 2007 (Thomson Financial delivered by Newstex) -- The dollar weakened sharply against major currencies, falling to new all-time lows against the euro and the Swiss franc, as vague rumours of an emergency meeting of the Federal Open Markets Committee added to further speculation that Gulf economies could abandon their dollar peg. Meanwhile, ongoing fears over the US economy, linked to turbulence in financial markets and a flagging US housing market, provide a longer-term, underlying reason for the dollar's weakness. Vague rumours have circulated around the market this morning of an emergency meeting of the FOMC, the US Federal Reserve's rate-setting body. 'There were rumours of an emergency rate cut from the Fed tonight in the Asia session, which is likely to keep the dollar in a shaky mood,' said Audrey Childe-Freeman at CIBC World Markets... http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-21110183.htm --- Seriously, where did all this emergency rate cut rumors originate from?
You mean like on September 7th, when the Government reported job losses of -4k for the month of August against expectations of approx +90k. Giving the Fed all the ammo it needed to drop rates two weeks later by 1/2 a point. Then when the October Non Farm number comes out they conveniently revise the September number to +89k. I mean come on, how fucking stupid do they think people are? Obviously pretty fucking stupid as most people just lap that bullshit up like a helpless newborn sucking up it's formula.
Can someone please please please explain where these rumours of an emergency rate cut is coming. Come Monday @ 2pm we could very well see a 50 bp cut.
Wont fix shit. It will provide a temporary boost in the markets but they will continue to slide downwards again.
Lol its not just the AAA subprime tranches. That is just the icing on the shitcake. Go long on Sysco, they will providing supplies for the soupkitchens.
EXACTLY RIGHT...... Those numbers were completely made up just to get the rate cut in Mid Sept. One month later they find another 85,000 new jobs, come on, someone is not doing their job if the numbers are that off.