Fed Funds Rate Cut to Lowest Level Ever
The Federal Reserve has cut its target for a key interest rate to the lowest level on record and pledged to use “all available tools” to combat a severe financial crisis and prolonged recession. The central bank says it reduced the federal funds rate, the interest that banks charge each other, to a range of…
I predict that gold will retest 700 again soon. Keep your powder dry.
HOBOKENROCKS I would not blow my horn yet (or anyones else’s for that matter). A new administration will take office on Jan 20, 2009 and there is one person in Obama’s cabinet that going to take a AK 47 to the MAB. His name is Paul Volker.
Paul Volcker
http://en.wikipedia.org/wiki/Paul_Volcker
Paul Adolph Volcker (born September 5, 1927) is an American economist. He is best known as Chairman of the Federal Reserve under United States Presidents Jimmy Carter and Ronald Reagan (from August 1979 to August 1987). He is currently chairman-designate of the newly formed Economic Recovery Advisory Board under President-elect Barack Obama.[1]
First day in office he is going to Bitch-Slap Ben Bernanke in the face and tell him to get lost! Then he is going to take a missile to the rest of the Mutant Asset Bubble and RAISE THE FED LENDING RATE!!!!!! If you are long on metals, you are going to get hurt real bad! Take a look at the price of oil! 60% off the highs and what do you think is going to happen to the rest of the Asset classes. Wave Buh Bye…
The What
Someday this war is gonna end…
I bought us mint gold, i bought the etf gld and I am buying gold thru a friend who has family in india who deals in gold. I am now looking to start buying silver since it in my opinion is undervalued. Gold is getting hard to get so that means it should start really moving. I don’t know in how much time but we will get it. Hyperinflation takes time but like the 70’s it took 5-6 years after we got off the gold standard to truly start seeing huge price increases. I don’t know how long but it will come if we see prices stabalize and start moving up.
DIBS – ah, thanks. I see.
Well.. There are no more bullets is the gun and the Zombies are still coming. If you think this means lower borrowing costs, I have some bad news for you. The policy adapted by the FED today means the Federal Reserve System is the only entirety providing liquidity to the Banking System. Everyone else is buying US T-Bill as a form of safety.
Release Date: December 16, 2008
For immediate release
The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.
http://www.federalreserve.gov/newsevents/press/monetary/20081216b.htm
“Since the Committee’s last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further.”
Allow me to parse this statement: We are cooked…
“Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate further in coming quarters.”
Implosion of the Mutant Asset Bubble! The hot money has left the building and we must provide “price support” to the “Masses of Asses.
“The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time. ”
We are going full blast on the printing presses and we are going to ignore market conditions…
2009 is going to be real fun.. Eh..
The What
Someday this war is gonna end…
BROOKLYNHEIGHTSROCKS,
You predicted hyperinflation. How do you think that’ll factor in? How do you buy your gold? Straight up (bullion, coins, etc.), goldmoney or perth?
***Bid half off peak comps***
Cheeky
I hate to toot my own horn but I predicted this would happen months ago. I also wrote about the fed purchasing all type of assets especially the 10 yr. All this has come true and I feel this will help at one point. But I feel this all comes at a price. In the future when all countries come out of this the USA will lose its place at the top of the food chain. For now I look forward to a 4.5 30 yr fixed. To get that rate your going to have to have great credit though. Get ready to make alot of money….
2008 – 2018, America’s Lost Decade. Sianara!
***Bid half off peak comps***