BREAKING: Fed issues 0.25 cut to fed funds rate(4.25) and fed discount rate(4.75)..DOW Drops on news

[Blackhatjack]

There is a message here that the Fed sees a significant credit downturn ahead.

[Robbien]

1. Wall Street Greedy Gusses shouting Gimme More, Gimme More

Ignore that inflation is raging, that the dollar is in the toilet and that the middle classes are hurting, we Wall Streeters demand MORE.

[bryant69]

7. So what do you think should have happened

Or do you have an opinion besides "Screw Wall Street?"

Bryant
Check it out --> http://politicalcomment.blogspot.com

[Javaman]

21. Personally, I think they should have just left it where it was.

this cutting of rates does no one any good.

Wall street will get another infusion of play money, the dollar will drop more and inflation will go up.

Sometimes doing nothing is the best policy.

[enid602]

2. printing money

The way they're printing money, they could just give it away.

[Hydra]

3. Hear that flushing sound?

that's our economy in the toilet.

[Blackhatjack]

4. Dow is DOWN 208 points now and STILL DROPPING...

One of the major Wall Street Firms predicted a 'mild' recession this morning.

[magellan]

6. Hubby and I are puzzled by this -- we expected WS to react positively

...as they usually do. Why is the DOW dropping??

[Robbien]

9. Streeters were DEMANDING the Feds drop the rate by 50 basis points not 25

Wall Street was adamant that they get a 50 point drop because they said that that would reflect that the credit crisis was just about over.

The Feds are saying, hold your horses. The credit woes will be continuing.

[magellan]

16. Thanks n/t

[A HERETIC I AM]

12. Because of what was said, along with the announcement

From the Fed Statement;

"Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation. In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.

Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."

[magellan]

15. Thank you n/t

[TahitiNut]

11. Every major market index is down - DOW (Ind&Util), S&P500, NASDAQ, NYSE, and Russel2K

... until there're more layoffs and wage reductions, I guess.

[Blackhatjack]

22. This is more about maintaining liquidity to keeps banks/lenders from failing....

The credit crunch is far from over until there is a full disclosure of the amount of losses being kept off the books of the financial institutions.

THis situation could trigger 'a run' on banks and other financial industry players.

IF Citigroup were to break up, and enough small banks begin to close, there would be a massive 'pulling of investment capital' which could trigger a economic meltdown.

[Jim__]

5. Didn't the DOW go up yesterday because they were anticipating a .25 rate cut today?

So why, when they get the cut they wanted, does the DOW drop?

[pa28]

14. Bernanke gave this away a couple of weeks ago.

So, the markets have priced in a quarter point plus a softer stance with the 1000 point rally we saw.

I think the financial echo chamber kept raising expectations beyond the level of reasonable action and now the disappointment sets in.

[Jim__]

17. It makes sense that the markets were actually anticipating a bigger than .25 rate cut.

I guess all the spam about the .25 cut was for the benefit of the "little guy" who gets his info from the media.

[Horse with no Name]

8. I wonder how much money it will take to sustain the BS that the WH

propels?
Something tells me that the fed will throw as much as necessary to prop up this administration's propaganda.
This doesn't affect me directly.
I'm certainly glad that I don't owe anyone anything.

[Blackhatjack]

10. CNBC talking heads say the statement issued with the announced rate cuts spooked the market...

THe statement no longer talked about forestalling negative things, but rather about improving things. Statement was read as confirmation that the Fed sees a problem with the credit markets that is not likely to lift anytime soon.

[Blackhatjack]

13. Jim Cramer just said buy stocks outside the US... we are headed for recession.

He called the Fed officials 'a bunch of 5 to 9ers' who did not see the problems that needed addressing.

[Blackhatjack]

18. Dropping on the news Housing Stocks, Real Estate Investments, Retailers like Saks, etc.

[sicksicksick_N_tired]

19. How is that helpful? Looks like a disease,...called CONSUMPTION!

I can understand a sort of moratorium, or whatever, on defaults but lowering the rate simply makes our overall worth even weaker.

Are they trying to bankrupt this nation ON PURPOSE?

:shrug:

I admit to only having basic college courses in economics but the policy being injected makes no sense to me, at all. On the other hand, supply-side economics made no sense to me in a so-called democratic nation because it OBVIOUSLY favored (and assumed benevolence on behalf of) the upper financial echelon who have proven themselves time and time again to be nothing other than SUPER GREEDY assholes.

[Javaman]

20. And I thought he was going to cut it .50 %. good thing otherwise the

dow would be through the floor by now.