Predict the Fed (rate announcement on 01/30/08 at 11:15 a.m. Pacific)

[swag]

I say they'll cut another 50 and the bias statement will echo their surprise 75 bps cut statement from last week.

[jlake]

1. I agree with your prediction.

[Fresh_Start]

2. read a column that argued they need to cut the rate to 1 3/4

to attempt to stabilize mortgage problem
I suspicious that a rate cut isn't sufficient to address mortgage/real estate problem

I can see they are addressing the liquidity issue
but don't see that an interest rate cut solves the underlying credit problems

do you see the rate cuts as a solution?

[swag]

6. No, I don't see rate cuts as a solution.

An awful lot of shitty debt is going to have to be declared, written down, and flushed out of the system before anybody is going to lend to anybody else with any level of trust.

Big trubba.

[Fresh_Start]

8. my feelings also

and the cost to carry will destroy financial profits for some time into the future
as well as depressing real estate prices for several years

[bbinacan]

3. Agreed on 50 bps. n/t

[TheUniverse]

4. By the end of the year, the rate will be negative 15%,

[Yavin4]

9. By The End Of The Year, They Will Be Throwing $20s At You

While you walk down the street.

[Nimrod2005]

5. 25 BP

[roamer65]

7. 50.

The markets have figured in 50, so they'll cut by that amount.

[swag]

10. .

[ozone_man]

11. I'll go with 50.

The downside is that they'll have one less bullet left. Only two more points left to cut (from 3% to 1%) and then probably a market free fall.

[taught_me_patience]

12. 50bps

Bernanke is OWNED by wall street.

[Selatius]

13. I think 25 base points, but they probably could aim for a 50 point cut. I would say...

though, that if the Fed really wanted to look after the whole economy, then they should stop cutting rates and probably contemplate higher interest rates to discourage more reckless lending and to help reverse the decline of the US Dollar. A more conservative approach would simply be to freeze interest rates where they are and wait it out.

[Javaman]

14. when bendover benenke does this, just think how far that "rebate" will go

come may or june or whenever the hell we are supposed to get it.

At this rate, 600 bucks should cover a weeks worth of groceries.

looks like this admin* really enjoys sprinting toward oblivion.

invest your "rebate" in Euros.

[swag]

15. Gitcher last licks in.