U.S. rate cut

[scorpio]

Nobody knows for sure whether the Federal Reserve will cut interest rates by a quarter point or a half point today.

What effect do u see on this rate cut....

I think it will give a new kickstart to US economy and More revenue to us

 

[Biggie]

Nobody knows for sure whether the Federal Reserve will cut interest rates by a quarter point or a half point today.

What effect do u see on this rate cut....

I think it will give a new kickstart to US economy and More revenue to us

the rate cut will further weaken the dollar in overseas trading,
as the US is already in so much debt.... with the Chinese holding the mortgage.

however, it should stimultate the housing market, which is the reasoning behind it all.

 

[scorpio]

Our market went up 2% today on hope of rate cut .... it it dont cut it will fall heavy..
Technology stocks have been going real down here . most are hit 8-10% in last few months with $ becoming weeker.

Don yes $ will become week ..

i like strong $ . it gives me more local Rs when i convert.

 

[hugegrowth]

How long can they prop up the dollar before it all collapses? No country has ever been able to do it. They can prolong the inevitable, but only for so long. The Canadian dollar is almost at par with the US$ now, which underscores how the US$ has declined. Just saw a sign in a gas station yesterday "US $ at par". What a change in 5 years, I remember getting an extra 50% on the exchange from US$ to C$.

The world economy seems to be getting stronger now and is not as reliant on the US as before. All the US companies that have some operations outside the US won't be hurt as much, they'll be pulling in rising foreign currencies. Many top economists in the US have predicted huge problems for the US economy, due to all the government debt and foreign countries holding huge US$ accounts, but the government keeps finding ways to patch it up temporarily. Something's got to give and it won't be pretty. But you can never count out US know-how and determination, so who really knows what will happen.

As a worst case, you'll start seeing more regular people investing in gold and switching their US$ to stronger foreign currencies. If I was an American I'd be seriously looking at all my investments that are in US$, and finding ways to convert them to something safer.

 

[DNP]

Fed can't stop recession
Even if the central bank starts to cut rates aggressively, many of the risks for the U.S. economy are beyond its reach.

http://money.cnn.com/2007/09/13/news/economy/recession_risks/index.htm

 

[Theo]

The US economy is heading to a natural point of correction. One has to see the big picture: when property values ballooned 3 years ago, that growth was unwarranted. The world economy followed suit but with no signs of correction: property values in Europe stand to sustain a crash, versus the gradual devaluation of the US market. The latter stimulates the economy: once prices drop to their lowest level, buyers that held back will buy. In other economies that won't be possible. The US market is consumer-oriented; that's one of the benefits of capitalism, it drives growth and its cycles have been studied for decades.

 

[hugegrowth]

It's strange times, natural resources are through the roof and stock markets are near all time highs, companies are profitable, but on the other hand US currency is falling and there is talk of recession.

 

[Theo]

That means more expensive films shot in Canada by Michael Moore. He will finally use US workers

The Fed cuts by one-half percent the federal funds rate.

 

[muris]

The Fed cuts by one-half percent the federal funds rate.

Not enough to bring speculative optimism back and it's very bad move for the future - will be worst because of it.

http://finance.yahoo.com/expert/article/richricher/45300;_ylt=Atl7E06JUBBZswJf87ObkXm7YWsA


.

 

[Theo]

With elections next year, it does not matter. Expectations of an eternally rising economy are utopian; correction was long overdue. Taking into account wages, the cost of living and goods, the US fares much better.

 

[Prosperous]

"Fedsday Stupidity" ('strong' language):
http://www.youtube.com/watch?v=U3N7PU9ohMI

 

[tas38]

Look at the brite side of this all, the rich keep getting richer off the middle class and poor. Big oil has set new record profits, each year from Hurricane Katrina so they are doing great, plus the bush admin big tax breaks for them as well. Also CEO's are getting richer, and so is the rich banks as well. HHHmm all the old school markets, they held the markets back so long, before the high tech market took over.