Fed cuts interest rates to 3.5%

[Perp]

Ya, now is the time to buy. That's how the rich do it. :thumbsup:

[thcbongman]

Ya, now is the time to buy. That's how the rich do it. :thumbsup:

You could find some deals out there. Personally I'm waiting for it to bottom out. There is no doubt in mind that we are approaching a recession.

All I smell is desperation from the feds cutting rates. Before the meeting convenes...... .75 cut. There is something seriously wrong with the market. Things are only going to get worse. I couldn't call a depression yet. We need Bush out of office first and see whos elected. That decision will determine everything.

[binger]

Agreed - our chances greatly increase once Bush is out of office. It seems he's good at running companies/countries into the ground. I think his plan is poorly directed, too late, and won't do much before the election. But - it sure looks like he's trying, doesn't it? He's the donator.

I agree that there will be some deals out there in the market. Apple just released their second record breaking quarter for profits. They made $1.58 billion .... in profits! :thumbsup:

A few months ago, analysts were calling for $225/share. It's still worth that, it's just going to take the rest of the year to get there. IMHO

I believe Rachel Maddow may have hit the target, earlier tonight on Countdown with Keith Olberman, by pointing to infrastructure investments. Funding infrastructure projects can ripple a lot more through the economy than a few hundred dollars in a tax 'refund'.

Know of any bridges or levees that could use some work?

[snowblind]

the problem with the market is the amount of debt countries, namely the us are in.

so they hike up interest rates and people stop spending, so the economy starts to fail as people can't afford to buy the things that the economy relies on.

the answer would be to stop spending peoples taxs that you dont have

[dragonrider]

The first quarter of this century isn't over yet, bub...We could see something worse than the depression...this country is in a downward spiral and it makes me so sad to look and see this go to shit over the past few years..

Well, you're absolutely correct that our economy could go to complete shit and we end up seeing worse than the depression. Throw in an environmental crisis or a REAL war, and we could be reduced to actual starvation. All I'm saying is I don't think abolishing the Fed and going to a gold standard is the way to go. I think the Fed is a good tool for managing the economy, and for the most part it does a good job. And I was serious about gold --- it's not a good basis for a national currency, but if you really think the economy is headed for serious instability, gold is a great investment for inidvidual investors. Stash away a few Krugerands, Eagles and Maple Leafs, plus a lot of dried beans and shtogun shells.

[angry nomad]

double post. oops.

[angry nomad]

One reason you need a Federal Reserve bank is in order to respond to financial crises and shifting financial markets, like it is doing right now.

The Federal Reserve does not "print money." It does control the money supply, thereby acting as a sort of "throttle" on the economy and a control on inflation. Some kinds of inflation can be partly controlled by the Fed through the use of interest rates to either speed up or slow down the economy. And the Fed does a VERY GOOD job of controling that kind of inflation --- there has not been excessive inflation for more than 30 years. The other kind of inflation comes from an actual real cost of goods that is not controlled by the pace of the economy. Oil is one example, and the cost of oil spreads through the economy, affecting the price of everything else. The Fed cannot do very much about that kind of inflation. But it can respond to other kinds of economic affects resulting from that kind of inflaltion, like recession.

My feeling is that the Fed is very important and mostly does a pretty good job. I've not been able to understand the Ron Paul supporters' hatred of the Fed, and I do not think a gold standard would work. We were on the gold standard during the Great Depression, the worst economic disaster of the last 100 years or more, and the gold standard did not help then.

If you personally want your savings to be backed by gold, you should buy gold.

(emphasis added)

The Federal Reserve Act was enacted December 23, 1913 before The Great Depression.

"Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are hereby authorized."

FRB: Federal Reserve Act: Section 16

Looks like the Fed issues money to me.

[angry nomad]

Ya, now is the time to buy. That's how the rich do it. :thumbsup:

blech. must you use that kid's face for an avatar? nothing against you, but damn, that kid is annoying.

[dragonrider]

The Federal Reserve Act was enacted December 23, 1913 before The Great Depression.

Yes, the Federal Reserve was established in 1913, and there were other national banks before it, but notes were backed by gold until 1933 and backed by silver until 1963.

[Zcomp]

Thomas Jefferson opposed the first bank. Followed by andrew jackson's distruction of the national bank.
Banks will be the death of us.
Lets hope that another pres commits to something similar.