Comments on: Another Federal Reserve Rate Cut Decision http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html Freshly squeezed market commentary & analysis Tue, 07 Oct 2008 10:28:15 +0000 http://wordpress.org/?v=2.0.2 by: Babak http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28589 Thu, 31 Jan 2008 18:52:59 +0000 http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28589 Grant, there are many financial "products" and each has its own "price". Overnight lending between banks is different than a 90 T-Bill for obvious reasons. The FOMC's rate influences overnight lending rates and filters through the financial system. Grant, there are many financial “products” and each has its own “price”. Overnight lending between banks is different than a 90 T-Bill for obvious reasons. The FOMC’s rate influences overnight lending rates and filters through the financial system.

]]> by: Grant http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28541 Thu, 31 Jan 2008 14:56:19 +0000 http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28541 Okay, regarding matching supply and demand: I guess I'm trying to understand what the overnight lending rate between banks has to do with the rate for t-bills exactly? To an uneducated eye like mine, they seem unrelated. Okay, regarding matching supply and demand: I guess I’m trying to understand what the overnight lending rate between banks has to do with the rate for t-bills exactly? To an uneducated eye like mine, they seem unrelated.

]]> by: Babak http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28481 Thu, 31 Jan 2008 04:44:32 +0000 http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28481 Grant, everything has a price. The interest rate is the "price" of money itself. No matter how well informed a committee may be, they can never rival the price discovery mechanism of a free and open market. This is why the bond market is the best place for the discovery of the true price of money - or the interest rate. The Fed does its best to mimic the freely set rate in order to match supply and demand. Grant, everything has a price. The interest rate is the “price” of money itself. No matter how well informed a committee may be, they can never rival the price discovery mechanism of a free and open market. This is why the bond market is the best place for the discovery of the true price of money - or the interest rate. The Fed does its best to mimic the freely set rate in order to match supply and demand.

]]> by: Is A Recession Inevitable? http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28452 Thu, 31 Jan 2008 00:24:24 +0000 http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28452 [...] Contact « Another Federal Reserve Rate Cut Decision [...] […] Contact « Another Federal Reserve Rate Cut Decision […]

]]> by: Grant http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28437 Wed, 30 Jan 2008 20:09:21 +0000 http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28437 Why exactly does the Fed need to keep the Fed target rate in line with treasury rates, Babak? Why exactly does the Fed need to keep the Fed target rate in line with treasury rates, Babak?

]]> by: Johan http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28424 Wed, 30 Jan 2008 18:23:58 +0000 http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28424 If the problem only was to lower the interest rate a lot to make the market go up... what a wonderful world it would have been. I don't agree that a, let's say, 100 point cut would mean a bullish market. Not in the short nor long-run. If the problem only was to lower the interest rate a lot to make the market go up… what a wonderful world it would have been. I don’t agree that a, let’s say, 100 point cut would mean a bullish market. Not in the short nor long-run.

]]> by: Ben Bittrolff http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28374 Wed, 30 Jan 2008 13:50:14 +0000 http://www.tradersnarrative.com/another-federal-reserve-rate-cut-decision-785.html#comment-28374 Make sure you're sitting down before you fire up these charts. <a HREF="http://benbittrolff.blogspot.com/2008/01/really-scary-fed-charts-why-bernanke.html" rel="nofollow">Really Scary Fed Charts, Why Bernanke Will Cut Furiously</A> TheFinancialNinja Make sure you’re sitting down before you fire up these charts.
Really Scary Fed Charts, Why Bernanke Will Cut Furiously

TheFinancialNinja

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