Fed Cuts Discount Rate, Markets Rejoice
Everyone knew the Fed was considering cutting rates, but its half-point shave of the discount rate before markets opened this morning surprised investors, who responded by driving up the Dow 300 points. According to The Times, the move increases the possiblity that the Fed Funds rate could be cut before the next scheduled meeting on…
Everyone knew the Fed was considering cutting rates, but its half-point shave of the discount rate before markets opened this morning surprised investors, who responded by driving up the Dow 300 points. According to The Times, the move increases the possiblity that the Fed Funds rate could be cut before the next scheduled meeting on September 18, something that could have big implications for the housing market. For now, though, the question is what, if any, psychological impact this cut will have on the real estate market, here and around the country.
In Surprise Move, Fed Cuts Key Rate [NY TImes]
But 3:28, if Mr. B were to list all those articles, it would be equivalent to saying something like, “Brooklyn real estate is a bad investment right now because, honestly, the market doesn’t look like it’s got anywhere good to go from here, and actually, all the rest of you who bought in the last 5 years just bought into the housing bubble hype, I hope you don’t get screwed”. He’d write himself out of a job, wouldn’t he? Plus, that would probably involve admitting to himself that he probably paid too much for his house too.
And if he said “Brooklyn real estate is still a steal, you all better jump in now while mortgages are still available, it’s the only thing to do”, he’d be misleading people.
I think he’s doing an ok job of not editorializing or giving actual financial advice. It does seem like he leans towards the everything’s-hunky-dorey-nothing-to-see-here-move-along stance, but that’s mainly because with no editorializing, the content of this blog ends up just being a list of places currently for sale. And the subprime mess hasn’t really caught up with the Brooklyn market yet, so things are still selling for inflated, bubble-time prices.
Eh, we’ll see what happens. I’m betting it’s going to be awful, but I don’t think it’ll be awful starting tomorrow. I think stock crashes and hedge fund implosions take a while to trickle down to your average Joe Canarsie. Give it a little while, let a few million Americans lose their homes (flippers first, of course), retirement funds and any other investment they have, then watch them try to deal with inflated food prices (thank you ethanol), inflated gas prices (thank you peak oil), and inflated everything else prices (thank you rumoured future Fed rate cut). Everyone will be a leftist all of a sudden. It’ll happen on its own.
why not also discuss these articles?
“Subprime lender NovaStar cuts 500 jobs”
“Pink slips hit Wall St.; Bear Stearns pares 240”
“Countrywide forced to turn to banks for help”
“The escape of the enablers”
“Mortgage rates rise for first time in four weeks”
“Jobless claims rise unexpectedly”
My point is, if you’re going to “report” news, then report it all. Otherwise, just to bricks and kitchens and wallpaper and…
Offer a balance.
get your face out of the New York Times, and into the real world, please.
we all are, 2:09.
i have no idea how 1:58 managed to find his/her way to brooklyn.
screw being high. anyone who thinks that bush’s tax cuts have done ANYTHING just smoked crack, snorted coke, injected heroin and woke up in a pool, of what i hope, was their own vomit.
laughing now
We should keep this forum on point, but let me at least say that if you think the Bush Administration’s tax cuts haven’t done wonders for the economy, you are high. As for your Leftist-colored glasses that create holograms of civil rights violation, Christiandom, etc., keep imagining that; and hopefully you will continue to lose elections…
anyone who thinks a continuation of current republican tactics in government is going to help the economy is beyond high.
12:52 The clinton years had budget surplusses compared to the present administration. And if Clinton were president we wouldn’t be in Iraq and its billions upon billions dollars of costs. Bush’s war is akin to Roosevelt saying during ww2, “forget about Hitler let’s make sure we stop this Franco fella in spain, he’s our real nemesis”.
Ah yes, the 2008 election question:
Socialist dystopia or Christian-o-fascist police state.