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EUR/USD = 1.5132

Bernanke signals further rate cut to boost US economy
Xinhua, China - 2 hours ago

2/27 (Xinhua) -- Federal Reserve Chairman Ben Bernanke told Congress on Wednesday the central bank will again lower interest rates to boost US economy.



try and stop me!

"Our economy is strong"

I'll believe it when I see it.

Something tell's me that Bernanke is getting geared up for his Ibiza Trip.

quote:

Originally posted by D:Jay Something tell's me that Bernanke is getting geared up for his Ibiza Trip.

that would be counterintuitive seeing how the dollar is getting weaker by the day that's actually why i made this thread... the direction things are going, ibiza '08 is gonna hurt even more than last year when it hit record lows of 1.3. $1000 usd buys me 100 fewer euros now

My European friends are loving vacationing out here...

The dollar may be in a world of pain, but investing wisely in the right global sectors easily makes up for that. Wherever one area is sluggish, a different area is booming. Just have to balance your portfolio right.

Easier said than done, of course. YMMV.

quote:

Originally posted by skizzell The dollar may be in a world of pain, but investing wisely in the right global sectors easily makes up for that. Wherever one area is sluggish, a different area is booming. Just have to balance your portfolio right. Easier said than done, of course. YMMV.

on the investment end yes, but you are still getting paid in and spending in dollars. there's no way around being a loser when the dollar inflates like this... well, unless you're in the tourism industry

quote:

Originally posted by R!CH that would be counterintuitive seeing how the dollar is getting weaker by the day that's actually why i made this thread... the direction things are going, ibiza '08 is gonna hurt even more than last year when it hit record lows of 1.3. $1000 usd buys me 100 fewer euros now

better exchange your cash now then, before it gets worse!

quote:

Originally posted by R!CH on the investment end yes, but you are still getting paid in and spending in dollars. there's no way around being a loser when the dollar inflates like this... well, unless you're in the tourism industry

I suppose I am speaking from a longer term investment standpoint. Because, yeah, you're getting paid in dollars -- and when this works itself out within a couple years or so, your portfolio won't know the difference.

As far as liquid money, well, I would hope that Americans prepare for hardships and short-comings, but of course that's wishful thinking. I really can't have sympathy toward people who don't plan for obvious future situations. We may be the powerhouse of the world, but that doesn't mean we aren't prone to economic correction. Now give us our government handout.

I am glad, however, that Bernanke and others seem to be on board in regard to reforming (babying consumers) our credit companies in order to prevent people from being so retarded. Too little, too late though?

quote:

Originally posted by skizzell The dollar may be in a world of pain, but investing wisely in the right global sectors easily makes up for that. Wherever one area is sluggish, a different area is booming. Just have to balance your portfolio right. Easier said than done, of course. YMMV.

Amen

this month is said to be the lowest ever for the housing market. USA, especially the west coast is having the largest number of repossessed houses ever.

If they do not lower the prime we as a nation are going to go into recession, which as history dictates will A) start a war, and B) piss me off

I need this damb prime to start dropping so I can sell my house, and move. If it doesn't I will be taking a huge hit. ... DAMMIT!

quote:

Originally posted by BLOWZO this month is said to be the lowest ever for the housing market. USA, especially the west coast is having the largest number of repossessed houses ever. If they do not lower the prime we as a nation are going to go into recession, which as history dictates will A) start a war, and B) piss me off I need this damb prime to start dropping so I can sell my house, and move. If it doesn't I will be taking a huge hit. ... DAMMIT!

We are already in a 'war'.

Had we not spent hundreds of billions of dollars in this 'war', we might be in just a little better shape.

But then the terrorists would win.

Re: EUR/USD = 1.5132

quote:

Originally posted by R!CH Bernanke signals further rate cut to boost US economy Xinhua, China - 2 hours ago 2/27 (Xinhua) -- Federal Reserve Chairman Ben Bernanke told Congress on Wednesday the central bank will again lower interest rates to boost US economy. try and stop me!

keep going down baby!!!!!
(need to re-fi soon)

Re: Re: EUR/USD = 1.5132

quote:

Originally posted by MR STROKE keep going down baby!!!!! (need to re-fi soon)

Fed cuts don't always affect mortgage rates in the right way. In fact, rates have climbed half a percentage point over the last few weeks it seems.

I'm in the same boat though. I'm looking to get a good re-fi myself, when the time is right. Not in any kind of rush though.

quote:

Originally posted by BLOWZO this month is said to be the lowest ever for the housing market. USA, especially the west coast is having the largest number of repossessed houses ever. If they do not lower the prime we as a nation are going to go into recession, which as history dictates will A) start a war, and B) piss me off I need this damb prime to start dropping so I can sell my house, and move. If it doesn't I will be taking a huge hit. ... DAMMIT!

recessions are a natural part of the economic cycle. playing with monetary policy to affect the current economic conditions is futile and myopic thinking. we claim to be a free-market economy, yet we're terrified of letting the economy adjust itself freely. seems these days we are more a hypocritical society than anything else...

quote:

Originally posted by R!CH recessions are a natural part of the economic cycle. playing with monetary policy to affect the current economic conditions is futile and myopic thinking. we claim to be a free-market economy, yet we're terrified of letting the economy adjust itself freely. seems these days we are more a hypocritical society than anything else...

quote for truth. The thing is the more you clamp down on an economy and try to control it the worse the adjustment is when it comes.

i agree with your stements R!ch, I'm just sayin... when it comes down to it.. I WANT MY HOUSE TO GO UP!!!!!

however we get there....lol

From CNNMoney.com


Ben Bernanke didn't tell Congress this week exactly what the Federal Reserve would do next, but the central bank chief certainly left Wall Street with the impression that a half-point cut is a sure thing.

Federal Reserve policymakers are scheduled to meet again on March 18. Right now futures listed on the Chicago Board of Trade indicate that investors are pricing in a 100% chance of a half-point cut and a 32% chance that the Fed will slash interest rates by three-quarters of a percentage point.

"A 50-point cut seems to be a reasonable compromise," said Stuart Hoffman, chief economist at PNC Financial Services. "Any more than that and he will catch some inflation flack."

Bernanke, as part of his semi-annual hearing on the Fed's monetary policy, spent two days testifying in the House and Senate and outlined the trio of challenges facing the Fed: an economy at risk of falling into a recession, topsy-turvy financial markets and the rising risk of inflation.

But it was the health of the U.S. economy that remained his biggest concern. The Fed chief focused on the variety of "downside risks" to the economy, including continued deterioration in the already troubled housing sector as well as the health of the consumer.

His comments, along with more troubling economic numbers issued on Wednesday and Thursday, only firmed up expectations about the Fed's next move. Prior to his testimony, investors were betting that a half point cut was all but certain - futures markets on Monday suggested there was a 94% chance that the Fed would implement a half-point cut.

A half-point cut in March would bring the fed funds rate, which affects rates on a variety of consumer loans including credit cards and mortgages, to 2.5 percent.

Since September, the central bank has steadily lowered interest rates by 2.25 percentage points to help keep the economy from tipping into a recession. In January alone, the Fed instituted two cuts totaling 1.25 points.

April move tricky

The Fed's move at its two-day policy meeting in late April may prove a little more complicated as inflation fears have started to gain more attention lately.

Prices at both the consumer and wholesale level climbed more than expected during the month of January, even when accounting for volatile food and energy prices.

Even the Federal Reserve chief himself acknowledged the threat, warning lawmakers that efforts to stimulate the economy could become complicated if inflation failed to moderate.

That is proving tough however as a weakened dollar and the prices of key commodities, particularly crude oil, continues to hover near record highs.

"Based on [Bernanke's] testimony, I would say he will start to get a bit more cautious in his rate cuts after cutting again at the March 18 meeting," said David Jones, president of consulting firm DMJ Advisors who formerly served as a chief economist at a bond house on Wall Street.

In fact, experts like PNC's Hoffman argue that unless the economy is clearly in a recession by the Fed's April meeting, a rate cut in March might be the last for some time.

"I think there's a case to be made that the Fed may say, 'Let's take a breather right now and see what is happening,' " said Hoffman.


http://money.cnn.com/2008/02/28/new...sion=2008022817

CONCLUSION: knowing the dollar is at all time low, and skyrocketing energy prices (inflationary enough), the fed still cuts rates. people should learn that the fed shouldnt be there to help them all the time, and the only way to teach them is by not helping. since when did the fed become an insurance company?

quote:

Originally posted by BLOWZO If they do not lower the prime we as a nation are going to go into recession, which as history dictates will A) start a war, and B) piss me off

What war was the result of the early 80s recession (which is one of, if not the largest recession since the Great Depression)? And the recessions between now and then?

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