Simultaneously to JPM deal, Fed drops lending rate a quarter-point

[deminks]

http://www.msnbc.msn.com/id/23664039/

WASHINGTON - The Federal Reserve announced a series of new steps Sunday to help provide relief to a spreading credit crisis that threatens to plunge the economy into recession.

The central bank approved a cut to its lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately, and created another lending facility for big investment banks to secure short-term loans.

The steps are “designed to bolster market liquidity and promote orderly market functioning,” the Fed said in a statement. “Liquid well-functioning markets are essential for the promotion of economic growth.”

The new lending facility will be available to financial institutions on Monday.

It will be in place for at least six months and “may be extended as conditions warrant,” the Fed said. The interest rate will be 3.25 percent and a range of collateral will be accepted to back the loans.

[CountAllVotes]

1. expected to cut rates by as much as 2% I read

over on yahoo finance.


>>> At almost the same time as the deal for control of Bear Stearns was announced, the Federal Reserve said it approved a cut in its lending rate to banks to 3.25 percent from 3.50 percent and created another lending facility for big investment banks. The central bank's official meeting is on Tuesday. Before the emergency move to lower the discount rate, which is the rate at which banks lend each other money, the Fed was widely expected to again cut its headline rate by as much as a full point to 2 percent.
This is not good, not good at all.

and on a Sunday at that. :scared:


:kick:

[deminks]

2. Spot Gold up to $1010/ounce

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=7a45c226-7374-4e7e-8571-9b4d4ebf866b

Spot Gold At New Record High; Weak USD, Financial Market Concerns

SYDNEY -(Dow Jones)- Spot gold prices broke above $1,010 a troy ounce Monday, setting a new record in a market driven by fear over further bad news from the financial sector after JPMorgan announced it would buy stricken U.S. investment bank Bear Stearns for $2 a share.

Shares in Bear Stearns closed at $30 Friday, having fallen 47% that day.

"If an old institution is sold for $2, there's a feeling there's more bad news to come," said Jonathan Barratt, managing director at Commodity Broking Services.

(end snip)

I get the feeling that there are a lot of shorts in a wad this Sunday evening/Monday morning.

[old guy]

3. It is a game now to delay the collapse until after the election.

[asjr]

4. I'm really worried about a Depression. It is

just a matter of time until the entire shoe factory falls.

[spanone]

5. how many tricks do they have up their sleeves....they're buying time till january 09

they they can walk away from it

[edhopper]

6. The rate at which

JP Morgan will now borrow at to buy Bear Stearns. coincidence?

[DemocratInSoCal]

8. You Are A Frickin' Genius!

You're Absfuckinglutely RIGHT!

You have NO FUTURE working in the media, because I'm sure they're too Stupid to pick up on a "coincidence" like that.

JPM gets to use that rate somehow.

[CountAllVotes]

9. now I know why

I was called by JP Morgan about a week ago and was invited to a "Women and Investing Seminar". I have never done any business with them or any other investment company. :wtf: ????????? :mad:

:kick:

[deminks]

7. Nikkei (Japan) down roughly 3% at this time.

http://www.bloomberg.com/apps/quote?ticker=NKY%3AIND