The Fed might have missed the chance.
When the subprime problem came up last year, Fed should have done something quicker then.
Right now, we may need to just wait for the bottom of this mess and then rebound.
That's fine if there's no rate cut. The market will just go to hell for a while. Big deal! It's only money! The .50 basis point may become reality but by the time they meet and announce the cut it will have no effect whatsoever. It may do some good to slash by .75 tomorrow if they are smart. We all know they're not, so be prepared.
Not a chance in hell.
As someone said that would make too much sense. The Fed will cut at the next meeting. 0.25 to 0.5%.
2 yr t-bill is at ~2%. In 6 months, Fed funds will be at 1.25%, otherwise 2 yr rate makes no sense.
Listen to the market. When Fed funds are at 1.25% people will be dying to get into equities. But will have to pay a lot more.
<<When Fed funds are at 1.25% people will be dying to get to equities. But will have to pay a lot more.>> Smartest comment on this message board tonight. Pay heed, Gadgeteers.
Actually, a cut tomorrow would hurt. The markets would rebound, but only temporarily. We need a washout and that could happen tomorrow if we are down precipitously.
A FED move tomorrow would only prolong this decline....
I am lighting a candle tonight in hopes that there is NO rate cut tomorrow. It would reek of desperation and have absolutely no impact on events in the short-term. In the long-term it would be more disruptive than many have considered, IMO.
Oil is back <$90. Gold is trending down. US equities are reasonably valued if P/E holds... but that is the problem: no one believes guidance at this point.
In hindsight, damage will focus on financials. In the meantime, however, we will see indiscriminate carnage.
This is my personal opinion. Please do your own research.
A rate cut won't change a thing. Rates are already low, thats NOT the problem. Look where the mkt was before ANY cuts, look where it is today. Have you seen any indication lower rates have helped?
The truth is the Fed is damned if they do and damned if they don't. But, at the very least they should wait til the mkt stabilizes so as to ensure a better chance that a cut will coincede with a bounce so that it at least looks effective to those who don't understand why the markets are acting this way. Thats really the most they can hope for.