I am convinced it will not. In fact with the bail...

2007-10-02T16:31:00.000-04:00

I am convinced it will not. In fact with the bailouts going on behind the scenes I am thinking 50 basis points next meeting too. Bill Miller says 3.75% within 6-12 months. 6 months is only 3-4 meetings away. Thats still a full 1% point down.

It looks like to me, 1 year of ultra low rates, sub 4% and then the Fed will have to reverse itself for this massive inflation bubble they inflated to bail out the rich. Its not helping people in housing - 30 year fixed rates have gone UP since they cut. It will allow people to get into 2 year ARMs if he cuts to 4% or below. Wait... didn't we just go through that? ;)

84% chance now per futures of Fed cut in October. Boo. Don't use logic. Look at whats going on behind the equity markets - bailouts. Canada central bank just did $1 billion overnight - the entire western world has this stuff going on. Amazing.

Interesting article on CNNMoney about whether the ...

2007-10-02T15:07:00.000-04:00

Interesting article on CNNMoney about whether the market rallying the way it has after the rate cuts (in expectation of more rate cuts) might actually negate the possibility for another rate cut.

"By moving so quickly to soothe the worries of investors, the Fed may also have raised the expectation that it will keep cutting rates. And it may be this expectation of further rate cuts, and not the actual rate cuts themselves, that are fueling the market's recent rally."

""Investors have built in expectations for another rate cut in October and future moves beyond that. But that's totally inconsistent with the substantial improvements in the market. Much of the basis for the Fed's move was to restore some of the order within the markets"" - Keith Hembre, chief economist with First American Funds

"With the market firming up, I can see the Fed backing way from a rate cut. With Citigroup and UBS taking big write-offs, everyone is giddy, thinking that the worst is over." - Ted Parrish, co-manager of the Henssler Equity fund

"To cut rates again, Parrish said, the Fed will probably need to see another disappointing jobs report."

""On a global basis, the pressure is for higher interest rates. The more the dollar continues to decline, the higher inflation you have. By lowering interest rates, the Fed has actually created an inflation problem for themselves and will eventually have to raise rates again."" - SMH Capital's Cummer

Comments on Fund My Mutual Fund: Pending Home Sales Hit New Lows

I am convinced it will not. In fact with the bail...

Interesting article on CNNMoney about whether the ...