Wow....The Fed just cut by .25 points....on a sunday evening!

[dvcgirl]

Think they're worried about a complete meltdown?

They also opened up the window to primary dealers immediately instead of waiting until March 27th...

Wow.

 

[tinaluis]

WOW!!!!!!!!! It's been a busy weekend for them, hasn't it?

 

[dvcgirl]

There has to be *big* doings going on for this to happen. They're afraid of a market crash tomorrow and are trying their best to avert it. JPMorgan also just acquired Bear Stearns....that news also broke.

Hang onto your hats, that's all that I can say at this point.....there's no telling how the markets will see this development. They'll either see it as a positive that the Fed is at least trying to contain this thing, or they'll view it as "things must be *really* bad" and sell like crazy.

Keep in mind that the Fed meets on Tuesday, and felt it necessary to do an emergency cut on a Sunday night...two days before the meeting. And also to open that window up to Primary Dealers two weeks ahead of schedule.

 

[punkin]

and Bear is being sold at $2 per share

this is horrible they are valuing Bear's book at almost nothing. This is so bad, I have no words.

 

[bdcp]

This was not a cut in the prime rate, which is what you usually hear about, but a cut in the rate for lending to financial institutions. This rate cut covers only short-term loans that financial institutions get directly from the Federal Reserve. This doesn't apply directly to the public. But, the Fed is meeting Tuesday and may cut the prime rate again. See this story: http://my.earthlink.net/article/top?guid=20080316/47dca950_3421_1334520080316-224959141

 

[bdcp]

Double post. Not sure how that happened.

 

[dvcgirl]

This was not a cut in the prime rate, which is what you usually hear about, but a cut in the rate for lending to financial institutions. This rate cut covers only short-term loans that financial institutions get directly from the Federal Reserve. This doesn't apply directly to the public. But, the Fed is meeting Tuesday and may cut the prime rate again. See this story: http://my.earthlink.net/article/top?guid=20080316/47dca950_3421_1334520080316-224959141

Yes, it's the discount window, but how often does the Fed cut on a Sunday night. They're trying to calm the markets after this Bear deal. The fact that Bear was sold for $2 a share says a whole heck of a lot. Their books must have been *awful*. And if their books are that bad, there are others. And a lot of nervous investors may be trying to pull their cash out.

The Nikkei just opened down 255, their futures were up 130 prior to the Fed and Bear deal announcements......so that's almost a 400 point swing.

Tomorrow could be one hell of a day in the markets. It's really tough to know what to expect, but the downside risk is immense right now.

 

[bdcp]

Yes, it's the discount window, but how often does the Fed cut on a Sunday night. They're trying to calm the markets after this Bear deal. The fact that Bear was sold for $2 a share says a whole heck of a lot. Their books must have been *awful*. And if their books are that bad, there are others. And a lot of nervous investors may be trying to pull their cash out.

The Nikkei just opened down 255, their futures were up 130 prior to the Fed and Bear deal announcements......so that's almost a 400 point swing.

Tomorrow could be one hell of a day in the markets. It's really tough to know what to expect, but the downside risk is immense right now.

We just have to ignore our 401K's for a while. The whole market is so skittish, yet if you look at most individual indicators, they aren't as bad as the market is acting.

 

[Cheshire Figment]

I am very happy that my 401(k) is 100% in Treasury Bonds.

 

[HaleyB]

I am speechless.
Skittish is not the word I would use at this point.

 

[mickey2000]

 

[SoonipiLady]

Yes, it's the discount window, but how often does the Fed cut on a Sunday night. They're trying to calm the markets after this Bear deal. The fact that Bear was sold for $2 a share says a whole heck of a lot. Their books must have been *awful*. And if their books are that bad, there are others. And a lot of nervous investors may be trying to pull their cash out.

The Nikkei just opened down 255, their futures were up 130 prior to the Fed and Bear deal announcements......so that's almost a 400 point swing.

Tomorrow could be one hell of a day in the markets. It's really tough to know what to expect, but the downside risk is immense right now.

and oil set another record in Asia overnight! $111.42/barrel

I'm guessing that this winter is going to seal the deal for us....This 200 year old house has got to go! Pretty or not, 6,000.00/year for heat is more than I can deal with!

That's two trips to WDW for us!!

 

[happygirl]

and Bear is being sold at $2 per share

this is horrible they are valuing Bear's book at almost nothing. This is so bad, I have no words.

OMG that is so scary It almost like they are expecting the market to crash