U.S. Fed Reserve cuts interest rate, Dow down forced by political & economic climate

Key interest rates cut cuts key interest rate by three-quarters of a percent

http://news.yahoo.com/s/ap/20080122/ap_on_bi_ge/fed_interest_rates

The biggest one-day move by the central bank in recent memory.

Rout in Asia too

Tokyo falls 6%, Hong Kong 9% as rout continues
Asian markets subjected to intense sell-off; trading briefly halted in Mumbai
http://www.marketwatch.com/news/sto...x?guid={0F859F2C-F4CB-4F1C-8D57-DBF98E8F5AF5}


And now in New York

Wall Street Opens With Steep Decline in Dow Jones Industrial Average

U.S. markets fall heavily on Wall Street opening bell: Dow Jones down more than 400 points; Nasdaq down 5 percent.

Comments :-

 

Bush speaks today and only god knows whats next. I don't think it can get any worse, the Fed just gave what they have. And again as always "THEY KNOW NOTHING" : http://forums.digitalpoint.com/showthread.php?t=648257

 

They cut them too early I think.

 

This was the largest cut in or around 20 years, it's a dollar late and a dollar short.

 

This cut is huge, it shows the fed is deserate. As a former daytrader this is gonna make things crazy for a few weeks. They are trying to mask the recession as much as they can, but they cant hold it off forever.

 

Alltogether now people. Can we say GOLD OR SILVER BACKING?
This is why i say they will eventually say Ron paul is right. It will be less painful economically if we all come to that conclusion sooner rather than later.

 

My gold stocks are still getting killed
Even if gold goes up $20
It sucks

 

Why buy gold stocks? Just buy the gold.

 

You would have to have some serious cash to earn anything from gold if you bought that itself. Im not into just earning a little by buying that.

But anyways seems like the fed will cut next week to.

 

I am shocked, but it looks like the feds are now taking their cue from the media.

The media has a goal for this election year and now the feds seem to being playing a huge part of fulfilling that goal.

3/4 % come on! That will cause panic not help. They need to hold still.

Question for those who know the in's and out's of the sub-prime mortgages. Since these mortgages are adjustable, doesn't this mean that those mortgages are also seeing a declining (or stablizing) for the loan holder?

 

Why are people saying on TV that its not NEAR the bottom WTF?
Meaning we will see worse days OMG
There WRONG

 

It takes a while for the rate cuts to take affect at that level.

 

What makes you think they are wrong? I believe it will go lower, could be a good bit.

 

I don't think the Fed cares because this is an election year.

Inflation was 13.5% in 1981 and was successfully lowered to 3.2% by 1983. Paul Volcker raised the Fed rate to 20.00% to defeat inflation.

 

Yeah, I don't think rates will be going back up until 2009.

 

Actually they may know something, Look at the bond market, if bond investors (pretty smart people) where worried about inflation yields but over the last month yields have fallen indicating inflation may not be as big of a concern as the slowing economy is. Hence lower yields on Treasury bonds.

 

Outside food and energy price aren't really going up.

 

No the adjustable mortgage rates are set off the Libor. Not Federal Funds or Treasury bond rates.