The following is the text of two statements issued by the U.S. Federal Reserve on Friday:

"Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest that the economy has continued to expand at a moderate pace, the Federal Open Market Committee judges that the downside risks to growth have increased appreciably. The Committee is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets."

"To promote the restoration of orderly conditions in financial markets, the Federal Reserve Board approved temporary changes to its primary credit discount window facility. The Board approved a 50 basis point reduction in the primary credit rate to 5-3/4 percent, to narrow the spread between the primary credit rate and the Federal Open Market Committee's target federal funds rate to 50 basis points. The Board is also announcing a change to the Reserve Banks' usual practices to allow the provision of term financing for as long as 30 days, renewable by the borrower.

These changes will remain in place until the Federal Reserve determines that market liquidity has improved materially. These changes are designed to provide depositories with greater assurance about the cost and availability of funding. The Federal Reserve will continue to accept a broad range of collateral for discount window loans, including home mortgages and related assets. Existing collateral margins will be maintained. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York and San Francisco."

Idiots!!

There was no growth to begin with.

Idiots!!
There was no growth to begin with.



I knew you were going to be mad!

Cramer was just on. Said we were probably headed for a 1000 pt crash today or Monday and Countrywide declaring bankruptcy if they had not cut.

Yes, I was laughing.

The following is the text of two statements issued by the U.S. Federal Reserve on Friday:
"Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest that the economy has continued to expand at a moderate pace, the Federal Open Market Committee judges that the downside risks to growth have increased appreciably. The Committee is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets."
"To promote the restoration of orderly conditions in financial markets, the Federal Reserve Board approved temporary changes to its primary credit discount window facility. The Board approved a 50 basis point reduction in the primary credit rate to 5-3/4 percent, to narrow the spread between the primary credit rate and the Federal Open Market Committee's target federal funds rate to 50 basis points. The Board is also announcing a change to the Reserve Banks' usual practices to allow the provision of term financing for as long as 30 days, renewable by the borrower.
These changes will remain in place until the Federal Reserve determines that market liquidity has improved materially. These changes are designed to provide depositories with greater assurance about the cost and availability of funding. The Federal Reserve will continue to accept a broad range of collateral for discount window loans, including home mortgages and related assets. Existing collateral margins will be maintained. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York and San Francisco."


These people are not idiots, they know exactly what they are doing. Shame that the American people don't know, or, want to know.

These people are not idiots, they know exactly what they are doing. Shame that the American people don't know, or, want to know.



Well only Banks (and companies with bank-like entities, ie, Countrywide ) can borrow from the discount window.


This mess ain't over. We still have not heard the entire story from these companies.

I am a bull and I still think something is going to bite us in the behind.




...and you disappeared without a peep! No even a "I gone dreed!" No manners! LOL!


~~

Well only Banks (and companies with bank-like entities, ie, Countrywide ) can borrow from the discount window.
This mess ain't over. We still have not heard the entire story from these companies.
I am a bull and I still think something is going to bite us in the behind.
...and you disappeared without a peep! No even a "I gone dreed!" No manners! LOL!
~~


Well, Lou Dobbs has been crusading the story about the damage offshoring has caused the US economy for the last 3-5 years. I thought he just meant industry, but, global finance and capital has done it's fair share of offshoring; we are seeing residual effects, and, this provision of term financine up to 30 days, smacks of subsidization.

In any case, Sunny, I sent you a PM saying I was gone for a while; didn't you get it?

I still have to get gone as I een finish what I doing yet. Gat two and a half more weeks, and because of that, I am about to give this site another disapearing act, until I get past this last hump.

These people are not idiots, they know exactly what they are doing. Shame that the American people don't know, or, want to know.


Yes, everybody knows what they are doing. They are caving to Wall Street pressure. The Fed is supposed to be independent and unbiased. Any economist worth ten cents has been saying that the Fed cutting any rate to provide financing for financial institutions is/will be a big mistake. They didn't do it in 2005, 2001, 1998 or 1997 when the DJIA fell by 500 points in one day. This isn't to rescue the economy. The Fed doesn't keep track of financial markets. They regulate banks to ensure that they aren't taking any unnecessary risks. And guess what - banks *HAVE* been taking *EXTREME* risks by mispricing CDOs.

...but, when Continental was about to go belly-up, the Fed made a mistake and saved it. They were pressured into making the same mistake twice, instead of letting these money-hungry idiots take the punishment they deserve.

If you look at the DJIA its back up 200 points. So basically the 30 largest corporations on the planet are financings their earnings thru debt?? That is foolishness!!!!!!

Well, Lou Dobbs has been crusading the story about the damage offshoring has caused the US economy for the last 3-5 years. I thought he just meant industry, but, global finance and capital has done it's fair share of offshoring; we are seeing residual effects, and, this provision of term financine up to 30 days, smacks of subsidization.


Lou Dobbs is a dummy. Point blank.

...and yes, it is exactly subsidization. That's what I been saying. Anyway, back to Lou Dumbs - he's fighting corporations when he should be fighting government. When the Fed lowered interest rates to encourage economic growth I didn't hear Lou Dobbs tell people not to get into the business of living on debt. Thanks to the millions of dummies that did that corporations had to take this money and invest it where they can earn a greater return. That's what happens when you lower interest rates - you lower the level of return available. So people go offshore where the returns are higher. Not just corporations but also americans. They either do that or they buy homes that on average increased in value by 10 percent almost every 180 days. So why save money?? Where was Lou Dobbs when Bush cut the capital gains tax - which basically handcuffs investment. Once those handcuffs were off - then everybody started investing in foolishness.

Yes, everybody knows what they are doing. They are caving to Wall Street pressure. The Fed is supposed to be independent and unbiased. Any economist worth ten cents has been saying that the Fed cutting any rate to provide financing for financial institutions is/will be a big mistake. They didn't do it in 2005, 2001, 1998 or 1997 when the DJIA fell by 500 points in one day. This isn't to rescue the economy. The Fed doesn't keep track of financial markets. They regulate banks to ensure that they aren't taking any unnecessary risks. And guess what - banks *HAVE* been taking *EXTREME* risks by mispricing CDOs.
...but, when Continental was about to go belly-up, the Fed made a mistake and saved it. They were pressured into making the same mistake twice, instead of letting these money-hungry idiots take the punishment they deserve.
If you look at the DJIA its back up 200 points. So basically the 30 largest corporations on the planet are financings their earnings thru debt?? That is foolishness!!!!!!



Lou Dobbs is a dummy. Point blank.

...and yes, it is exactly subsidization. That's what I been saying. Anyway, back to Lou Dumbs - he's fighting corporations when he should be fighting government. When the Fed lowered interest rates to encourage economic growth I didn't hear Lou Dobbs tell people not to get into the business of living on debt. Thanks to the millions of dummies that did that corporations had to take this money and invest it where they can earn a greater return. That's what happens when you lower interest rates - you lower the level of return available. So people go offshore where the returns are higher. Not just corporations but also americans. They either do that or they buy homes that on average increased in value by 10 percent almost every 180 days. So why save money?? Where was Lou Dobbs when Bush cut the capital gains tax - which basically handcuffs investment. Once those handcuffs were off - then everybody started investing in foolishness.

You lose big money aye?
:dgi:

LOL. No way, I'm not dumb enough to invest in this market. No offense to anybody that did because I'm sure there are analysts out there that'll say you'd have to be dumb not to invest.

I'm looking more at the overall economy. I saw trouble on the horizon without the Fed cut. In fact, every and any other analyst sees the same thing. The difference is that they're trying to make as much as they possibly can right now and get out before things turn out too bad. The problem is that they misjudged when they should've gotten out. The majority of analysts, economists, brokers and traders waited too long and they relied on hype - saying stupid things like "Goldie Locks economy". They got caught being too greedy and now they want to go crying to the Fed to bail them out. And they got it. That'll only compound the problems that will come up ahead because those economists, analysts and traders got their money back. That money came at the cost of the american consumer who know has a devalued dollar. The Fed had to dip into its holdings to provide this liquidity. What happens as the trade deficit gets bigger and bigger?? The dollar is losing value on top of losing more value as the Fed pumps more dollars into the economy. Yeah....smart move.

Off topic,

but what do you think of Dennis Gartman?


http://www.thegartmanletter.com/

I haven't read much in order to give an opinion. I usually read one or two articles from a libertarian or monetarist and I'm turned off. Keynesian theory has its drawbacks - but I have little faith in the free market.

I haven't read much in order to give an opinion. I usually read one or two articles from a libertarian or monetarist and I'm turned off. Keynesian theory has its drawbacks - but I have little faith in the free market.


But you aren't fond of government intervention. You've said that on BI (in so many words)

I'm confused. :dgi:

But you aren't fond of government intervention. You've said that on BI (in so many words)
I'm confused. :dgi:


That's because I don't have faith in the government either. Particularly the Bahamas government - in an economy where non-public goods are controlled by government. That's just...what's the right word....asinine. Both, government and the free market, are equally important. Both are equally important because both are equally incompetent but equally powerful. That's why I would consider myself Keynesian. I'm not going to deny Friedman was of greater importance in many regards. But he was Keynesian too!!

In fact, if you focus merely on the demand and supply of money, then you'll undercut the consumer in favor of the government. The government can incur a deficit borrowing funds from the market to pay for things like....hmm, for the sake of argument let's say rebuilding Iraq. When Iraq gets destroyed by Al Qaeda, the money is gone and the only thing left is the debt the government owes. By the way, because the government has the power to tax it can borrow an unlimited amount and increase the demand for money causing interest rates to increase (look at the 70s when the government loaned money to South American nations). Nobody would buy anything or invest because the interest rates would be too high. So, the economy slows down consiberably - again, look at the 1970s. When it comes time to repay that debt, the government taxes the people who are in the midst of an economic slowdown, so there is increased unemployment.

So you have to do more than just focus on the demand and supply of money. Monetary and fiscal policy have to be considered. Greenspan didn't have to worry about this because Clinton was smart. Bernanke doesn't worry about it - not realizing that Bush is stupid. And Henry Paulson...well, I'm not going to badmouth Mr Paulson. Not in public anyway.

Off topic,

but what do you think of Dennis Gartman?


http://www.thegartmanletter.com/
Newa herd a deese people....but, I try not to read erry single person online. Bloomberg and the FT, as well as the economist seems to do da trick. Wit dat, da journals; Bridges Digest, World Economic Journal et al., does do da trick when ya need it. And, when ya finsih look tru dem, ya glean ya own standin!
:)


But you aren't fond of government intervention. You've said that on BI (in so many words)
I'm confused. :dgi:


Why we does have to say "government intervention"....gubment een gatt do no intervention, because, dey allready involved. We need to say, what shud gubment allow to continue, or, discontinue. But, government intervention, lends to the idea that "DA GUBMENT COMMIN TA TAKE YA TINGS!"

LOL....
:voodoo: