So The Feds Cut I-Rate by .75............????

[rsmith6621]

.....what happens when they run out of INTEREST to cut??????...then what.

[MNDemNY]

1. Doom.

[OhioChick]

2. Must Be Expecting Something BAD. n/t

[MercutioATC]

7. Well, they're "expecting" yesterday's huge global selloff...

...and they're trying to prevent the Dow from dropping 5% or more today.

Let's see how it works.

[rodeodance]

9. yes,

[MercutioATC]

3. More importantly, what happens to inflation and the value of the dollar?

Way up and way down, respectively...

[LeftCoast]

4. I have a feeling we may find out soon

:scared:

[Xenotime]

19. We are finding out right now.

[Demeter]

5. They Call It the Sushi Slump

after Japan's 20 years of living in a failed economy without a liquidation of defunct banks and corporations.

[NightWatcher]

6. this shows a PANIC, they meet again next week, but were panicked into cutting today

the last time they did this (intermeeting cut) was back in 1984 (Reaganomics, anyone?)

[Laura PourMeADrink]

8. Banks will get paid for borrowing ! Actually - they were going to

do it anyway - they just decided to move it up a bit.

[Kokonoe]

10. Don't they just shut off the stock market when things don't go well.

Is it a 300 point trigger or something?

[MercutioATC]

13. 3 circuit breakers...10%, 20%, 30%

http://www.nyse.com/press/circuit_breakers.html

[RUMMYisFROSTED]

14. A 2% move will initiate a "curb" or "Rule 80A."

Explanation:

http://invest-faq.com/articles/exch-circuit-brkr.html

[Virginia Dare]

11. What happens when the banks run out of money to lend?...n/t

[HereSince1628]

12. Europe shares fail to hold gains after Fed rate cut

http://www.marketwatch.com/news/story/europe-markets-shares-europe-fail/story.aspx?guid=%7BFD8F2908%2D6EB8%2D4120%2D81F5%2D500EABD2CC8B%7D&dist=hplatest

By Sarah Turner, MarketWatch
Last update: 9:11 a.m. EST Jan. 22, 2008Print E-mail RSS Disable Live Quotes

LONDON (MarketWatch) -- European shares staged a brief turnaround on Tuesday after the U.S. Federal Reserve cut its overnight rate by 75 basis points to shore up economic growth but soon gave up gains.
"The committee took this action in view of a weakening economic outlook and increasing downside risks to growth," the Federal Open Market Committee said in a statement.

David Page, a strategist at Investec Securities said: "It was a very aggressive move by the Fed clearly designed to stop a downward spiral in stocks."

Still, after initially spiking higher, markets soon moved back down, with the U.K. FTSE 100 (UK:UKX: news, chart, profile) down 0.6% to 5,545.00, the French CAC 40 (FR:1804546: news, chart, profile) down 1.2% to 4,688.01 and the German DAX 30 index (DX:1876534: news, chart, profile) down 2.3% to 6,640.69.

"I think that there's an element of thinking that, if the Fed is so worried that it is cutting rates, then that is feeding into fears that the U.S. economy is in really bad shape," said Page, speaking about the European share market move.
European markets were slammed on Monday amid growing fears that the U.S. economy is headed for a sharp downturn.

[Junkdrawer]

15. Expect the dollar to fall... n/t

[gratuitous]

16. You're familiar with the phrase, "I got nothin'"

Well, this is all they have left. The middle class has been pummeled for decades under the gentle ministrations of the supply side scam. Consumers don't have money to spend, wages have lagged badly even though productivity has gone up, up, up, and so the giant engine of the economy, consumer purchasing power, is pretty much off-line anymore. Our nation's economic policies have concentrated on the upward distribution of wealth to the detriment of practically everything else.

And this is the time when all those credit card statements come in the mail.

[FormerDittoHead]

17. I recall interest rates were very low during the GREAT DEPRESSION...

Maybe increasing the supply doesn't really do that much when there's NO DEMAND...

[NewJeffCT]

20. It's a short-term move only

In the long-term, the last several rate cuts are going to kill us in regards to inflation because the dollar will be so weak.

But, Bush is leaving that problem for the next president - sort of like Nixon handing stagflation to Ford & Carter.

[newportdadde]

18. It shows total panic by the fed. If all else fails just use the 1 bill as toilet paper.