Online Stock Trading | FOMC cuts discount rate

7 Responses to “FOMC cuts discount rate”

1. DeMerchant on August 17th, 2007 9:01 am

   I don’t know why the banks and goverment feel they need to interfere with the MARKET so much… it’s called the market for a reason… let market forces dictate where it goes… all interferance does is make situations worse

2. Author_Ego on August 17th, 2007 9:10 am

   So I can now expect the government to lend me a helping hand should my account ever get into trouble, right?

3. Market Speculator on August 17th, 2007 9:34 am

   WRONG!

4. beanie11111 on August 18th, 2007 4:28 am

   Times like these need interference or the permashorts will wreck havoc to the stock market as well as the economy. It’s always the shorts scaring everyone with bs lies/rumors to try to break the market, just so they can make some serious bucks. It’s the only they they ever really make real money.

   The LTCM debacle of the early 1990’s were just one fund, yet it almost brought down the entire system because the bears went all out crazy.

   In Jesse Livermore’s time, there was a debacle at the time and he took advantage of it by shorting the hell out of the market so mercilessly to the point of causing potentially a major collapse of the economy that the government had to actually step in and ask Livermore to please stop shorting, to which he obliged and started unwinding his shorts.

   There are certain times the fed really needs to step in, and friday morning was the perfect moment for that.

   A few hedgefunds, a few mortgage companies, and a few banks going out of business will not impact the economy that much. Hey, the subprime borrowers lose their homes but they still can spend because they still have jobs. The unemployement rate is low. But the fear mongering from the bear-minded can wreck havoc to the markets and potentially the economy. Benanke did the right thing by slapping the bears a big one yesterday. The banks stopped lending because they were fearful not because they didn’t have the money.

5. Market Speculator on August 19th, 2007 9:19 pm

   beanie my friend,

   When JP Morgan came to Jesse Livermore along with other prominent men they asked him to unwind his positions to create demand in the stocks he was short. At the time, NO ONE was buying causing prices to gap down severely. When Livermore unwound his shorts he created demand for these stocks. Thus, signalling to others that it was ok to get back into the market. Livermore was paid handsomely when he covered, as he had made a market call like none other during that time.

   But, for now, Bernanke has rewarded bad behavior by banks. Banks were allowed to lend folks that had no business in getting loans. Now, Big Ben says its ok, you made a mistake here is some money. Not only that, they have extended the repo period from 7 days to 30 days. UNREAL.

   If they are going to give out easy money, the Feds will have to regulate lending practices. Its that simple, they will need to regulate banks on how they structure loan products to their retail customers. Great, more regulation!

   Appreciate you stopping by beanie!

6. DeMerchant on August 20th, 2007 3:47 pm

   **Clap Clap Clap**

   - Here here MS

7. Market Speculator on August 20th, 2007 9:52 pm

   Thank you DeMerchant

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