Discussion in 'Wall St. News' started by Comptalk, Dec 12, 2008.
Will the dead fed cut next week?
0-2. No. They won't because money market funds won't be able to meet expenses before paying interest out to fundholders. We'll see.
hey its better to keep the US economy afloat then just a few money market funds. easy ben will deliver
Soon they will have nothing left to cut but cheese.
Wow they are out of ammo. Get this last .50 out of the way and the bears will push the Dow down to 5000. Stock Trader3 will take his life on YouTube then we will rally.
Yes they have to cut according to all the talking heads on wallstreet, they need 0% rates to jump start this economy,
Remember what caused the last bubble, historical low interest rates, were going back again to low interest rates.
i think a 25bp cut would signal to everyone that they're getting close to not cutting anymore. 50bp is cutting it a little too close to the edge..
they'll move 75bp to .25 just to put what they pay on reserves to parity with the effective fed funds.
Next comes the printing press.
there is a chance the interest on required reserves capital subsidy affects how low the fed goes. I havent seen any numbers on this, I'm trying to figure out how many billions a year that is. the math needs to adjust for the interest paid TO the TAF, discount window,etc because so much of bank reserves have been borrowed
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