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Hugin Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-16-08 03:12 PM
Response to Reply #77
83. Fed slashes key rate to near zero (CNN)
Edited on Tue Dec-16-08 03:16 PM by Prag
"Ben Bernanke & Co. cite weakness in economy and reduced inflation threat as justification for cutting rates to a record low range of 0% to 0.25%."

By Chris Isidore, senior writer
Last Updated: December 16, 2008: 3:39 PM ET

Housing market rocked again

NEW YORK ( -- In its latest effort to try and stimulate the U.S. economy, the Federal Reserve cut its key interest rate to a range of between zero percent and 0.25%, and said it expects to keep rates near that unprecedented low level for some time to come.

The central bank typically sets a specific target for its federal funds rate instead of a range. The rate had previously been at 1% and this marks the first time the Fed has cut rates below 1%. Most investors were expecting the Fed to cut rates to either 0.25% or 0.5%.

The federal funds rate is an overnight lending rate used as a benchmark to set rates for a variety of loans, including adjustable rate mortgages, credit cards, home equity lines of credit and business loans. This marks the tenth time it has cut rates in the last 15 months.

Several banks announced they were lowering their prime rate to 3.25% in light of the Fed's decision. Typically, the prime rate is 3 percentage points higher than the fed funds rate. It was 4% before Tuesday's rate cut.

More ons...


It's the rate cut boogie.

The LAST rate cut boogie... Ever.
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  -STOCK MARKET WATCH, Tuesday December 16 ozymandius  Dec-16-08 04:35 AM   #0 
  - Market WrapUp  ozymandius   Dec-16-08 04:39 AM   #1 
  - Today's Reports  ozymandius   Dec-16-08 04:41 AM   #2 
  - U.S. Nov. housing starts fall 18.9% to 625,000 annual rate - lowest on record  UpInArms   Dec-16-08 07:35 AM   #17 
  - U.S. Nov. housing starts plunge 18.9% to record low  UpInArms   Dec-16-08 07:58 AM   #22 
  - Here in Michigan banks are giving houses away when you open a new checking account.  tclambert   Dec-16-08 02:31 PM   #69 
     - I'll keep that in mind.  Dr.Phool   Dec-16-08 02:44 PM   #75 
  - U.S. consumer prices fall 1.7% vs. 1.4% drop expected (can anyone say "deflation"?)  UpInArms   Dec-16-08 07:59 AM   #23 
  - CPI slide steepest since '32  UpInArms   Dec-16-08 09:04 AM   #46 
  - Ufff. n/t  Ghost Dog   Dec-16-08 08:33 AM   #33 
  - RPT-TABLE-US chain store sales fell 1.4 pct last week  UpInArms   Dec-16-08 08:15 AM   #27 
  - U.S. Nov. trimmed CPI flat, up 2.7% in past year  UpInArms   Dec-16-08 10:40 AM   #53 
  - FOMC cuts fed funds rate to range of 0% to 0.25% (someone hold my hair, please?)  UpInArms   Dec-16-08 01:25 PM   #64 
  - Oil prices rise above $45 ahead of OPEC meeting  ozymandius   Dec-16-08 04:42 AM   #3 
  - Fed ready to slash rates amid deepening recession  ozymandius   Dec-16-08 04:45 AM   #4 
  - World markets climb before expected Fed rate cut  ozymandius   Dec-16-08 04:47 AM   #5 
  - Yes. Europe shares up after euro zone PMI, UK inflation  Ghost Dog   Dec-16-08 06:04 AM   #10 
     - Cadbury warns of slower growth as downturn bites  Ghost Dog   Dec-16-08 06:09 AM   #12 
        - "downturn bites?"  tclambert   Dec-16-08 02:36 PM   #71 
           - Heh. You've got a sense of (maybe a bit dry, twisted, on account of 'history')  Ghost Dog   Dec-16-08 03:04 PM   #81 
  - Shock waves spread from Madoff scandal  ozymandius   Dec-16-08 04:52 AM   #6 
  - Judge signs order to protect Madoff investors  ozymandius   Dec-16-08 04:53 AM   #7 
  - Should be an interesting test of the relatively young LLC moniker. We'll need to get the popcorn  54anickel   Dec-16-08 05:59 AM   #9 
  - They can claim up to $100,000 for their cash balances and up to $400,000 for any securities  Robbien   Dec-16-08 07:44 AM   #18 
  - The billionaire investors won't be happy with that.  tclambert   Dec-16-08 02:41 PM   #73 
  - Sweet  tama   Dec-16-08 08:33 AM   #34 
     - .  machI   Dec-17-08 05:28 AM   #106 
  - Hedge Fund Scam = tarbaby= the scam that keeps on taking n/t  kickysnana   Dec-16-08 07:49 AM   #20 
  - Ha! Firms are now rushing to let people know they were NOT invested in Madoff  Robbien   Dec-16-08 07:53 AM   #21 
  - Gee, I guess we need to check those companies next and find out why...  Prag   Dec-16-08 08:47 AM   #41 
  - Sometimes I think the whole stock market is a Ponzi scheme.  tclambert   Dec-16-08 02:47 PM   #76 
     - It certainly looks that way in the Markets current manifestation.  Prag   Dec-16-08 03:01 PM   #79 
     - Great minds think alike.  sarcasmo   Dec-16-08 04:11 PM   #100 
  - Good list, thanks for a start.  Ghost Dog   Dec-16-08 08:48 AM   #42 
  - Madoff case seen fueling attacks on the SEC (no regulation or investigation)  UpInArms   Dec-16-08 08:03 AM   #25 
  - Levitt Says S.E.C. Isnt to Blame for Madoff  Robbien   Dec-16-08 08:27 AM   #32 
  - "Levitt is now an adviser to Carlyle Group." It takes one to know one I guess.  Prag   Dec-16-08 08:44 AM   #39 
  - Did this man ever see any 'inconvenient' evidence anywhere?  Ghost Dog   Dec-16-08 09:03 AM   #45 
  - Madoff 'Tragedy' Said to Have Escaped Scrutiny by SEC  UpInArms   Dec-16-08 08:36 AM   #36 
  - Haha! Does the current SEC scrutinize anyone?  Prag   Dec-16-08 08:40 AM   #38 
  - The Madoff Saga: Perils of Fraudulent Conveyance  UpInArms   Dec-16-08 09:26 AM   #48 
  - So the theme of lax regulation, or sleepy regulators, leading to financial disaster continues.  tclambert   Dec-16-08 02:50 PM   #78 
  - Looks like they're going for the 'lone gunman' theory here.  Prag   Dec-16-08 08:38 AM   #37 
  - "I wouldn't touch that area with a ten-foot barge-pole"  Ghost Dog   Dec-16-08 10:55 AM   #54 
  - No, think man! There has got to be a way to blame the Democrats!  tclambert   Dec-16-08 03:16 PM   #85 
  - Heard on NPR  TalkingDog   Dec-16-08 02:03 PM   #67 
  - Stock futures mixed ahead of Goldman and Fed  ozymandius   Dec-16-08 04:58 AM   #8 
  - Debt: 12/12/2008 10,597,068,737,927.10 (DOWN 816,321,531.60) (.6 FICA, .2 public)  Festivito   Dec-16-08 06:08 AM   #11 
  - Debt: 12/15/2008 10,655,601,512,061.10 (UP 58,532,774,134.00) (Big again)  Festivito   Dec-16-08 02:40 PM   #72 
  - Worth re-quoting:  Ghost Dog   Dec-16-08 06:42 AM   #13 
  - "the future of our economy and national security is inextricably linked " with military spending  kenzee13   Dec-16-08 06:55 AM   #14 
  - Hybrids and electric cars take us a step closer, but  tclambert   Dec-16-08 07:26 AM   #15 
     - Thanks for the addition of some background.  Prag   Dec-16-08 08:55 AM   #44 
     - Yeah. Big question. Still very dangerous but we're putting a lot of international money  Ghost Dog   Dec-16-08 09:21 AM   #47 
        - Yeah, it ticks me off that the leading edge fusion research isn't in America.  tclambert   Dec-16-08 03:30 PM   #86 
           - We're all trying our best to work on it. Indeed.  Ghost Dog   Dec-16-08 03:56 PM   #94 
  - China and India: Suddenly vulnerable (last week's Economist Leader)  Ghost Dog   Dec-16-08 07:31 AM   #16 
  - Some of the comments there are...  Ghost Dog   Dec-16-08 08:36 AM   #35 
  - It's interesting that China is affected, too.  tclambert   Dec-16-08 03:35 PM   #87 
  - dollar watch  UpInArms   Dec-16-08 07:48 AM   #19 
  - Dollar falls ahead of Fed decision  UpInArms   Dec-16-08 09:42 AM   #50 
  - Goldman reports $3.6 Billion loss in trading and principal investments  UpInArms   Dec-16-08 08:01 AM   #24 
  - line item information:  UpInArms   Dec-16-08 08:25 AM   #30 
  - Goldman employee pay falls sharply in 2008  UpInArms   Dec-16-08 09:46 AM   #51 
  - TREASURIES - 30Y yield sets record low after record CPI drop - Look Out Below!  UpInArms   Dec-16-08 08:14 AM   #26 
  - 2.8 today  tama   Dec-16-08 03:36 PM   #88 
  - Best Buy posts lower net, looks to cut jobs  UpInArms   Dec-16-08 08:18 AM   #28 
  - Columbus, Oh - National Century Trial - Ex-client tells of his threat to tattle  DemReadingDU   Dec-16-08 08:23 AM   #29 
  - Thousands of layoffs by DHL, ABX Air hit Wilmington, Ohio  UpInArms   Dec-16-08 08:27 AM   #31 
  - 9:43 EST doing the rate cut boogey! it's all good!  UpInArms   Dec-16-08 08:44 AM   #40 
  - Oh, joy! Goldman's losing money! All is right with the world!  Prag   Dec-16-08 08:49 AM   #43 
  - Measliest raises in 32 years on tap: survey  UpInArms   Dec-16-08 09:30 AM   #49 
  - Old joke ....  AnneD   Dec-16-08 12:13 PM   #58 
  - Now, we get called 'workers';  Ghost Dog   Dec-16-08 12:17 PM   #59 
     - Aye, there's the rub.  tclambert   Dec-16-08 03:40 PM   #90 
  - A DUer recommended a must-read site for SMW denizens  Danascot   Dec-16-08 10:13 AM   #52 
  - is something to gnaw on...........  AnneD   Dec-16-08 10:58 AM   #55 
  - This helps also.  Dr.Phool   Dec-16-08 11:14 AM   #56 
  - That brings me to a question  burf   Dec-16-08 12:27 PM   #61 
  - Thanks. When I get my paying work done. . . . .  Tansy_Gold   Dec-16-08 01:54 PM   #66 
  - Cutting back on law & enforcement isn't usually the best way to reduce bad behavior.  snot   Dec-16-08 03:01 PM   #80 
  - The key to preventing the next Madoff scheme is deregulating the antiquated web of securities laws?  tclambert   Dec-16-08 03:54 PM   #93 
  - News you can really use........  AnneD   Dec-16-08 11:59 AM   #57 
  - Credit card crackdown coming soon  AnneD   Dec-16-08 12:18 PM   #60 
  - The Queen's Credit Crunch.......  AnneD   Dec-16-08 12:40 PM   #62 
  - everybody's got something to hide 'cept for me an my charred monkey meat  AnneD   Dec-16-08 12:52 PM   #63 
  - 2:25 EST Yippie Freakin' Skippie! Free Money!!!  UpInArms   Dec-16-08 01:26 PM   #65 
  - Last hour up, up we go with lower rates  CatholicEdHead   Dec-16-08 02:42 PM   #74 
  - Fed speaks, Fed pumps: corruption continues unabated  specimenfred1984   Dec-16-08 02:06 PM   #68 
  - My favorite dodge "I'm not even looking at my 401k"  specimenfred1984   Dec-16-08 02:31 PM   #70 
  - I've heard that five times already, among my limited set of acquaintances.  Prag   Dec-16-08 03:05 PM   #82 
  - Are they passing out psychelics on Wall Street today?  Dr.Phool   Dec-16-08 02:47 PM   #77 
  - Fed slashes key rate to near zero (CNN)  Prag   Dec-16-08 03:12 PM   #83 
     - Nowhere to go but negative % now?  CatholicEdHead   Dec-16-08 03:37 PM   #89 
     - Yeah, a friend of mine just called and told me.  Dr.Phool   Dec-16-08 03:47 PM   #92 
     - This just in: Fed sets interest rate to the Square root of negative one.  tclambert   Dec-16-08 04:01 PM   #95 
        - Damn! Where's my cipherin' machine?  Dr.Phool   Dec-16-08 04:02 PM   #96 
        - It's a math joke!  tclambert   Dec-16-08 04:05 PM   #97 
        - As in: imaginary money? n/t  tama   Dec-16-08 04:07 PM   #98 
  - Today's Beetle Bailey  antigop   Dec-16-08 03:12 PM   #84 
  - Huffpo: Will The Madoff Debacle Finally End The "Who Could Have Known?" Era?  specimenfred1984   Dec-16-08 03:46 PM   #91 
  - Hey, it's after 4! Where's my closing numbers?  tclambert   Dec-16-08 04:08 PM   #99 
  - A year ago Madoff gave a lecture on regs saying "It's virtually impossible to violate rules"  Robbien   Dec-16-08 04:14 PM   #101 
  - Madoff: " I'm very close with regulators, in fact, my niece married one".  Dr.Phool   Dec-16-08 05:28 PM   #102 
  - end of sucker-run-up day numbers  UpInArms   Dec-16-08 05:29 PM   #103 
     - Dow +359? Jeebus. Who honestly thinks this bubble is going to reinflate?  ozymandius   Dec-16-08 07:22 PM   #104 
        - Somebody still has a job?  Dr.Phool   Dec-16-08 08:22 PM   #105 

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