Screwballs on Wall Street

[Scanner]

Anybody watching the markets? The market's down because they think Uncle Ben didn't cut the Fed rate enough.

Hell, I think he should have raised it.

I would have raised it 3% because the subprime knotheads need money now to lend.

Well, who wants to save money at 4-5% so the banks have money to lend?

I would make it so now banks could pay 7% in savings and then they'd have the liquidity eveyone wants (rather than the gov't just printing more money as they are doing now - why do you think I hedge with silver?). Hell, yeah. . .if I could get 7%, I dump a good part of my portfolio into FDIC cash. . .and then they got money galore to lend.

I say what the country needs is a good bond market rally for the next 3-5 years.

Screw the stock market and their historical averages. If we keep pressuring Uncle Ben to keep babying the stock market, nothing good will come of it.

This woudl all go a lot easier if I was in charge

[Sporkman]

Anybody watching the markets? The market's down because they think Uncle Ben didn't cut the Fed rate enough.

Seriously! W.S. investors are disappointed at "only" a quarter point rate drop, even though the rate's down at the 4-ish range. Friggin' spoiled brats, I tells ya!

[Broken Arrow]

Well, the quarter point cut was expected for days now, and it looks like the market tea leaf readers were spot on this time.

Actually, lowering the interest rates helps to stimulate the stock market, so obviously, I expect today's market reaction to be a very temporary dip.

On the other hand, I also have to wonder which banks are going to start slashing their rates, and by how much. Please oh please don't slash mine.

[The Budget Man]

The lighter side of the Sub Prime Disaster

Following the problems in the sub-prime lending market in America and
the run on Northern Rock in the UK, uncertainty has now hit Japan.

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up
and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will
likely go for a song while today shares in Kamikaze Bank were suspended
after they nose-dived.

Furthermore, 500 staff at Karate Bank got the chop and analysts report
that there is something fishy going on at Sushi Bank where it is feared
that staff may get a raw deal .

This joke came through the emails yesterday. Enjoy

[webguru]

Following the problems in the sub-prime lending market in America and
the run on Northern Rock in the UK, uncertainty has now hit Japan.

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up
and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will
likely go for a song while today shares in Kamikaze Bank were suspended
after they nose-dived.

Furthermore, 500 staff at Karate Bank got the chop and analysts report
that there is something fishy going on at Sushi Bank where it is feared
that staff may get a raw deal .

This joke came through the emails yesterday. Enjoy

OK, I admit I believed every word of it until I reached "got the chop"!!!

Great stuff, thanks for sharing!

[LuxLiving]

Cute Budget Man!

Scanner, you've got my vote!!

[jIM_Ohio]

Anybody watching the markets? The market's down because they think Uncle Ben didn't cut the Fed rate enough.

Hell, I think he should have raised it.

I would have raised it 3% because the subprime knotheads need money now to lend.

Well, who wants to save money at 4-5% so the banks have money to lend?

I would make it so now banks could pay 7% in savings and then they'd have the liquidity eveyone wants (rather than the gov't just printing more money as they are doing now - why do you think I hedge with silver?). Hell, yeah. . .if I could get 7%, I dump a good part of my portfolio into FDIC cash. . .and then they got money galore to lend.

I say what the country needs is a good bond market rally for the next 3-5 years.

Screw the stock market and their historical averages. If we keep pressuring Uncle Ben to keep babying the stock market, nothing good will come of it.

This woudl all go a lot easier if I was in charge

First, low rates encourage businesses to borrow to expand their business. If rates were higher businesses would be more likely to sit on cash than to borrow and try to expand business.

Second, rates can't get much lower. The Fed needs room to drop rates lower if needed. .25 point moves down are as common as .5 point moves up, IMO.

Third, the markets are only one concern. The sub prime mortgages are a bigger concern. Keeping people in their houses longer is better for the economy. Fed needs to keep rates at their current levels (or lower) for about 3-5 years to create a "soft landing". Higher rates would mean businesses would spend less, meaning less jobs, meaning more mortgages default, which means market drops, which means rates would need to drop.

So we are cutting out all the middle pieces and just dropping rates

I know it's not really that simple, but I like idea of rates staying low. I might be able to refinance soon and get lower than 5%. Just need some time.

[lucasrd]

Bernanke didn't cut rates today did he? I heard they *MIGHT* have an emerency meeting before the end of the month but hadn't heard...

I was just expecting either a .5 or .75 cut at the end of the month