Will the Fed pause on Tuesday?

Discussion in 'Economics' started by Rearden Metal, Aug 4, 2006.

What will the Fed announce on Tuesday?

Poll closed Aug 8, 2006.
  1. The Fed will finally pause- I'm sure of it!

    17 vote(s)
    8.9%
  2. I think the Fed will pause.

    50 vote(s)
    26.2%
  3. I think the Fed will hike rates another quarter point.

    67 vote(s)
    35.1%
  4. Quarter point rate hike coming on Tuesday- I'm sure of it!

    35 vote(s)
    18.3%
  5. I have no clue what will happen.

    22 vote(s)
    11.5%
  1. yeah i know that saying. I'd love to see the market remain irrational for 1.5 years in the face of rising unemployment, no GDP growth, and low earnings across the board.

    "scared money don't make money" - you heard that one? =)
     
    #81     Aug 7, 2006
  2. duard

    duard

    My friends this is wisdom spoonfed.
     
    #82     Aug 7, 2006
  3. What was chicken little famous for? I'm not familiar...

    Your statement is a can of worms... Who are you referring to? Politicians? They're fools. Who else? The central bankers? Damn right they're smarter than me (as far as economics goes???), but it's a mute point. Their "independence" fell under the jurisdiction of the Office of the Presidency while we were all buys chasing Amazon stock back in the day...

    And no one's talking about the next American Civil War, we're talking about a recession. I'm just trying to speculate a little. Maybe that's the communication problem here. Traders vs speculators vs investors. You guys are traders...?

    No one has been able to present an argument as to why this is a bad trade, other than "goodluck trying to predict market direction and timing." Buying put options in the face of a serious economic slowdown is considered gambling??? This is beginning to be nonsensical. Isn't this the economics forum? I haven't heard any "economic" arguments against the coming recession.

    I understand that there are many different approaches to trading and speculation and that guiding principles and generally accepted practices in one approach may not be applicable to one another.

    Like I said - anyone have any additional ideas?
     
    #83     Aug 7, 2006
  4. So you think GDP will fall to very low levels for a few quarters and then rebound? How will this happen when the root causes of the recession aren't going anywhere anytime soon? Energy prices, housing slump (to get much worse), inflation, current account deficit....

    What's your call based on?
     
    #84     Aug 7, 2006
  5. bjg

    bjg

    My thoughts are the same, BNT.

    "I cannot help but raise a dissenting voice to statements that we are living in a fool's paradise, and that prosperity in this country must necessarily diminish and recede in the near future."
    - E. H. H. Simmons, President, New York Stock Exchange, January 12, 1928

    I also like this one:

    "Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months."
    - Irving Fisher, Ph.D. in economics, Oct. 17, 1929
     
    #85     Aug 8, 2006
  6. speculators speculate, talk a lot and go as far as paper trading for the less lazy, no more... traders trade... hope this helps :D

    all the slowdown in oil & commodities-hungry mkts incl construction etc is desired and not a concern, there are other non-jimrogersian real long term growth areas out there for who cares to look (but thats for 'investors' i.e. rational long-term players)... and as for 'worsening' unemployment rates, its really hard to see that as a growing concern... see attached

    this week's gonna be interesting earnings-wise, Cisco etc... lets see what this says about blue chip growth prospects etc...
     
    #86     Aug 8, 2006
  7. Adobian

    Adobian

    Anybody know what was the highest interest rate in the 80's ? What happened back then ?
     
    #87     Aug 8, 2006
  8. u mean when there was hardly any internet activity except amongst a few scientists, when kondratieff cycles were still in fashion etc?
     
    #88     Aug 8, 2006
  9. bsmeter

    bsmeter

    Hey how about this:

    Eliminate this damn private scam of a bank ( Federal my ass ) that's sucking the taxpayers dry and let the government print the money itself backed by the good faith and credit of the govt. Hey! then the taxpayer does'nt have to pay interest to the scammer behind this private bank. Oh ya, I forgot the bogeyman argument, can't trust the govt. ( so lets trust the private bankers? ) LOL :D

    You're worried about what this scam of a bank will do?

    http://video.google.com/videoplay?docid=1616088001333580937

    Just sell massively short and sit back. Buy back the shorts in 2 years. Hey who knows, maybe you'll make so much money you'll get a chair at the CFR :D
     
    #89     Aug 8, 2006
  10. bjg

    bjg

    I thought this stuff was general knowledge, and I don't even live in the US.
     
    #90     Aug 8, 2006