http://thecuriousinvestor.com/2007/08/31/auguste-27-august-31-2007-week-in-review/ Learn to invest in the stock market. Wed, 19 Nov 2008 04:04:58 +0000 http://wordpress.org/?v=2.5 http://thecuriousinvestor.com/2007/08/31/auguste-27-august-31-2007-week-in-review/#comment-5447 Dan Hung Sun, 02 Sep 2007 16:20:22 +0000 http://thecuriousinvestor.com/2007/08/31/auguste-27-august-31-2007-week-in-review/#comment-5447 I think Bernanke was pretty clear in not promising a rate cut though I am not entirely sure that that is detrimental to the overall health of the market. Before the last Fed meeting a lot of people were also clamoring that the market had "priced in" a rate cut and when there was no rate cut but a mere statement that showed some capitulation, the market ended up rallying as opposed to selling off. Overall, a rate cut isn't designed to stop the bleeding. Should homeowners and mortgage lenders need a bail out, this should come from the government on the fiscal policy side. A rate cut will take time to trickle through the system and changes the dynamic of the overall economy which can lead to undesired consequences outside of simply helping out those in financial distress over bad loans. I think Bernanke was pretty clear in not promising a rate cut though I am not entirely sure that that is detrimental to the overall health of the market. Before the last Fed meeting a lot of people were also clamoring that the market had “priced in” a rate cut and when there was no rate cut but a mere statement that showed some capitulation, the market ended up rallying as opposed to selling off. Overall, a rate cut isn’t designed to stop the bleeding. Should homeowners and mortgage lenders need a bail out, this should come from the government on the fiscal policy side. A rate cut will take time to trickle through the system and changes the dynamic of the overall economy which can lead to undesired consequences outside of simply helping out those in financial distress over bad loans.

]]> http://thecuriousinvestor.com/2007/08/31/auguste-27-august-31-2007-week-in-review/#comment-5441 Spyros Sun, 02 Sep 2007 11:21:28 +0000 http://thecuriousinvestor.com/2007/08/31/auguste-27-august-31-2007-week-in-review/#comment-5441 quiet a memorable week indeed. i am not sure whether bernanke has promised a rate cut rather than just a sympathy to investors. in any case, if fed rates remain stable there would a lot of trouble again as market has more than priced in a 25 bps cut (most of the financial houses are mentioning a greater cut 50-75bps) quiet a memorable week indeed. i am not sure whether bernanke has promised a rate cut rather than just a sympathy to investors. in any case, if fed rates remain stable there would a lot of trouble again as market has more than priced in a 25 bps cut (most of the financial houses are mentioning a greater cut 50-75bps)

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