Rate cuts!!!!

qdognjOctober 8, 2008

A coordinated rate cut from FED,ECB and others!!! 1/2%...In reality it doesn't do much to free up the credit crisis,but the "perception" is the important thing here..it should calm the nerves of investors,at least for a short while...

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patser

IMO, Short while are the operative words!!

    Bookmark   October 8, 2008 at 8:02AM
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galore2112

And the Nikkei plunges 9.4% on Wednesday. I'm wondering when we'll see news about investors and leverage planners jumping out of windows.

    Bookmark   October 8, 2008 at 8:51AM
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qdognj

The Nikkei dropped prior to the cuts,although considering the futures have reacted poorly here in the US,the Nikkei would have likley dropped,but perhaps not by that %

    Bookmark   October 8, 2008 at 9:04AM
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deniseandspike

What effect does this have on mortgage rates? I'm still locked in at 5.875%.

    Bookmark   October 8, 2008 at 9:18AM
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patser

It should have no effect on mortgage rates. 30 yr US Treasury bond yields are about the same today as they were on 1/1/08.

    Bookmark   October 8, 2008 at 10:36AM
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patser

Rates aren't just the same in the long end of the yield curve, but I don't think rates will change because of the tightness in the credit markets.

    Bookmark   October 8, 2008 at 10:41AM
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jane__ny

My variable rate loan just went down to 4.29%. I was paying 7.25 on a fixed.

    Bookmark   October 8, 2008 at 9:50PM
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logic

Rate cuts didn't work...Wall St. was moaning that the ban on short selling was an issue..ban lifted last night..market down over 600 today...which is '98 levels when things were in far, far better shape (clearly more is not ALWAYS better) ...and more realistic..as the 14K plus was inflated fakery..largely based upon fruit from the poisonous tree.

They won't play nice until the 700 bil gets handed out...with no restrictions or strings attached.

    Bookmark   October 9, 2008 at 7:40PM
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galore2112

"The Nikkei dropped prior to the cuts,although considering the futures have reacted poorly here in the US,the Nikkei would have likley dropped,but perhaps not by that %"

Fast forward a day and the DOW is down another 7% today and the Nikkei down 10% Friday.

    Bookmark   October 9, 2008 at 11:19PM
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bushleague

What happened to the 'curbs' that used to be in place when the Street tanked heavily?

    Bookmark   October 10, 2008 at 4:32AM
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qdognj

Market looks like it's headed for another decline at the open..That said, those who invest at todays levels will be very happy 2+ years from now...I think(or hope) there will be significant support around 7000-7500 level, which could be approached today,lol...

    Bookmark   October 10, 2008 at 6:22AM
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galore2112

NEVER (!!!!!!) catch a falling knife!

    Bookmark   October 10, 2008 at 8:29AM
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qdognj

If you believe the market is going to be higher 1-2 years from now, you MUST be investing at these levels..Of course, make certain you have cash available in case of unforseen emergencies...The hysteria surrounding the market is terrifying,BUT the world is not ending...Just as when EVERYONE was singing the praise of their homes value, how you couldn't lose $$$,this is just the opposite ,though much more magnified..

Anyone who is 10+ years from retirement should continue to invest...

    Bookmark   October 10, 2008 at 8:38AM
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triciae

qdog,

I don't see this as your average Bear. This isn't about the equity markets. It's all about the credit markets. We don't have much history to base decisions on after the government nationalizes our financial system. :(

I'm reminded of that statement on the bottom of the prospectus..."Past performance is no quarantee of future performance."

If we don't stabilize the credit markets SOON this is no longer even a banking story...next week, we'll be talking about large, household-name US corporations going under. How, praytell, qdog....do you make a decision right now on where to place your bet? I used the word "bet" on purpose because that's what it feels like, IMO.

The G8 meeting this weekend is another wrinkle to decipher before I'm willing to start pouring money into US equities. I'm getting very tired of these Sunday night surprises!

We've stabilized our entire portfolio except the 401(k) where we have little room to maneuver due to the plan's limitations. Thankfully, most of our portfolio is in IRAs & other investments. That job change of DHs that allowed us to roll our old 401(k) into IRAs is proving to be very valuable. We much prefer being in control of our own destiny.

Good luck to you if you should decide to jump in today. I'm waiting a bit longer. Also, we're going to be 'Bushwacked' at 10:20 a.m. & that's never good! :o)

S&P futures are now -41.70. The open looks ugly. GE has just announced their Board has voted to stabilize the dividend thru '09. That's good news since these dividends have proven so unstable.

/tricia

    Bookmark   October 10, 2008 at 9:05AM
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qdognj

t, i have been 40% in cash for quite awhile, and have been scaling in at "the close" each day for the past 10 days...Yes, it hurts, but one needs to "cost average" to have any hope of recovering some of the recent losses..I may have been early by 10-15%, but the upside risk outweighs the downside risk significantly,imho...

that said, as you point out,the credit markets DO need to loosen up to have any hope of market stabilization...

    Bookmark   October 10, 2008 at 9:22AM
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mfbenson

The credit market problems are a symptom, but such a severe symptom that it causes its own host of problems. It still all boils down to housing. Once prices bottom out, or better yet start climbing, all will be well. Until then, only those with enterprise and capital (usually, its just one or the other) will profit.

The national average price of a house is still up 90% in the last 10 years. Normal growth would be more like 30%.

I am still buying stock with every 10% drop the markets make, because I like to manage my cost basis down and my holdings are meant to be cashed out a long time from now, but also because the markets could just as easily return to irrational exuberance.

Still, its a good thing I shouldn't need that money soon - it could well take "a long time" to get to where prices (of houses, and consequently the credit markets and the stock market) are supported by fundamentals again.

    Bookmark   October 12, 2008 at 11:12PM
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