#Fed cuts interest rates as panic destroys markets; Japan postpones elections in wake of Nikkei meltdown
4787 Dead
Central Banks Coordinate Cut in Rates
By KEITH BRADSHER, DAVID JOLLY and EDMUND L. ANDREWS
Published: October 8, 2008
Central banks around the world cut short-term interest rates by up to
half a percent on Wednesday after investors across Asia and Europe
unleashed waves of sell orders onto already depressed stock exchanges.
Emmanuel Dunand/Agence France-Presse — Getty Images
A ticker outside the NBC studios in New York emphasized the falling
financial markets.
The Federal Reserve, the European Central Bank and other central banks
from Britain and Switzerland to Canada and China announced rate
reductions within seconds of each other. The British government
separately announced a plan to pump billions of pounds into the
country’s leading banks as part of a plan that would result in
considerably greater government influence over the financial sector
there.
The Fed said in a statement that, because of weakening economic
activity, it had cut the Federal funds target rate by half a
percentage point, to 1.5 percent. It also cut its discount rate by the
same amount. The vote was unanimous.
The European Central Bank cuts its benchmark rate to 3.75 percent from
4.25 percent.
The moves had some initial effect on stock markets. European markets
pared their heavy losses after the announcement, only to fall again.
And index futures rose sharply, then also fell, indicating a lower
opening.
Federal Reserve officials said this was the first time ever that the
Fed coordinated a reduction in interest rates with other central
banks, though the United States has periodically joined with other
countries to intervene in currency markets to stabilize foreign
exchange rates.
The closest thing to a precedent for Wednesday’s action came in
November 2001, when the Fed and the European Central Bank announced a
rate reduction on the same day. But those actions were nominally
independent, and they did not involve any additional foreign central
banks.
The cut came despite what had been a divergence of views between the
United States and Europe ever since the financial crisis erupted in
August 2007. The European Central Bank had been much more reluctant to
lower interest rates, because policy makers there tended to see the
mortgage meltdown primarily as an American problem with secondary
ripple effects in Europe.
But any lingering comfort outside the United States evaporated in the
last week, as money markets froze up around the world and major
corporations and banks across Europe began suffocating from their
ability to do even routine financial transactions.
Making matters worse, none of the epic emergency measures taken in the
United States — the passage of a $700 billion bailout plan to buy up
distressed securities; a doubling and re-doubling of emergency loan
facilities at the Fed to $900 billion on Monday; and the Fed’s
unprecedented decision on Tuesday to start buying up short-term
commercial debt for businesses of all types — had prevented the stock
markets from plunging at vertigo-inducing amounts day after day.
“At last, a coordinated show of force,” Ian Shepherdson, chief United
States economist at High Frequency Economics, wrote in a note. “The
move is to be applauded but there is more to come. The playbook to
avoid depressions says rates need to be as close to zero as possible.”
Other economists were cautious about whether the various measures
would be successful, after previous plans like America’s economic
bailout have not halted steep declines in share prices.
“There’s no silver bullet for these problems,” said Derek Halpenny, a
currency strategist at Bank of Tokyo-Mitsubishi UFJ in London. “But
the actions by the Fed on Tuesday, the U.K. government’s bailout plan
today and the bit-by-bit approach European governments are taking show
the authorities are getting more proactive.”
Tumult in financial markets is starting to spill into Asian political
systems. Japan’s prime minister, Taro Aso, promised a committee of
parliament on Wednesday that he would postpone national elections,
which had been expected early next month, in order to focus on the
unfolding financial crisis.
“Honestly, this for us is beyond our imagination,” Mr. Aso told the
budget committee. “We have huge fears going ahead.”
Most Asian markets closed before the central banks acted, and share
prices across the region suffered a drubbing.
In Tokyo, the Nikkei 225 Index plunged 9.4 percent, shedding nearly a
tenth of its value in its worst single-day loss in two decades. In
Hong Kong, gloomy investors gathered at day trading offices and
morosely checked their portfolios again and again as the Hang Seng
Index tumbled 8.2 percent. In Indonesia, the authorities simply shut
down the stock exchange by late morning after it had tumbled 10.4
percent.
--
"Now, by the way, any time you hear the United States government
talking
about wiretap, it requires -- a wiretap requires a court order.
Nothing has
changed, by the way. When we're talking about chasing down terrorists,
we're
talking about getting a court order before we do so"
-George W. Bush, April 20, 2004
Not dead, in jail, or a slave? Thank a liberal!
Pay your taxes so the rich don't have to.
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--
Opening up the health insurance market to more vigorous nationwide competition,
as we have done over the last decade in banking, would provide more choices of
innovative products less burdened by the worst excesses of state-based regulation.
-- John McCain, in the Sept/Oct 2008 issue of Contingencies, the magazine of the
American Academy of Actuaries.
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a.a. #2211 -- Bryan Zepp Jamieson
nobody
<zepp22...@finestplanet.com> wrote:
>http://www.nytimes.com/2008/10/09/business/09fed.html?_r=1&hp&oref=slogin
>
>Central Banks Coordinate Cut in Rates
>
>By KEITH BRADSHER, DAVID JOLLY and EDMUND L. ANDREWS
>Published: October 8, 2008
Hide Zippy, the sky is falling...
BillaryCl...@gmail.com
nice bottom in the housing market. Prices are so low that the buyers
are back. Every business cycle has a boom and a bust. This business
cycle is no different.
America will pull through this just as it has countless other times.
For what it's worth, we'll also carry the EuroPEON socialist countries
on our backs until this business cycle reverses. I can hear the
Chinese cheering. As they should, we owe them money and we buy their
goods.
It's not all doom & gloom Zippy. It's just business. Look at it this
way. Everything will turn around just in time for President Osama
Hussien Obama to claim credit for it all.
4787 Dead
wrote:
>Yet pending home sales are up 7.4%. Looks like we're making a very
>nice bottom in the housing market. Prices are so low that the buyers
>are back. Every business cycle has a boom and a bust. This business
>cycle is no different.
Do you know why they are "pending", cupcakes?
It's because the banks aren't making any fucking LOANS!
That's what a CREDIT FREEZE is, you moron!
>
>America will pull through this just as it has countless other times.
>For what it's worth, we'll also carry the EuroPEON socialist countries
>on our backs until this business cycle reverses. I can hear the
>Chinese cheering. As they should, we owe them money and we buy their
>goods.
>
>It's not all doom & gloom Zippy. It's just business. Look at it this
>way. Everything will turn around just in time for President Osama
>Hussien Obama to claim credit for it all.
BillaryCl...@gmail.com
> On Wed, 8 Oct 2008 07:10:29 -0700 (PDT), BillaryClinton2...@gmail.com
> wrote:
>
> >Yet pending home sales are up 7.4%. Looks like we're making a very
> >nice bottom in the housing market. Prices are so low that the buyers
> >are back. Every business cycle has a boom and a bust. This business
> >cycle is no different.
>
> Do you know why they are "pending", cupcakes?
>
> It's because the banks aren't making any fucking LOANS!
>
> That's what a CREDIT FREEZE is, you moron!
>
> >America will pull through this just as it has countless other times.
> >For what it's worth, we'll also carry the EuroPEON socialist countries
> >on our backs until this business cycle reverses. I can hear the
> >Chinese cheering. As they should, we owe them money and we buy their
> >goods.
>
> >It's not all doom & gloom Zippy. It's just business. Look at it this
> >way. Everything will turn around just in time for President Osama
> >Hussien Obama to claim credit for it all.
>
> --
>
> Opening up the health insurance market to more vigorous nationwide competition,
> as we have done over the last decade in banking, would provide more choices of
> innovative products less burdened by the worst excesses of state-based regulation.
> -- John McCain, in the Sept/Oct 2008 issue of Contingencies, the magazine of the
> American Academy of Actuaries.
> Not dead, in jail, or a slave? Thank a liberal!
> Pay your taxes so the rich don't have to.
> For news feed (free, 10-20 articles a day)
> For essays (donations accepted, 2 articles/week)
> a.a. #2211 -- Bryan Zepp Jamieson
Don't be such a dumbass Zippy. Lenders ARE indeed making home
mortgage loans. That's not what the "credit freeze" is all about.
The credit freeze is more about interbank loans, bank-to-business
loans and commercial paper. But if you have a good FICA score and a
steady job, you can still buy a car, a house or get a 2nd mortagage.
But guess what. Deadbeats with poor credit are locked out of the
market. That's the way it should be Zippy! If it had been that way
all these years then we wouldn't be in this mess.
I guess the education system in Canukistan is comparable to the
healthcare system isn't it? Because you sure are stupid.
Kurt Lochner
>Don't be such a dumbass
--You first..
BillaryCl...@gmail.com
wrote:
> "shallow, cretin" <shallow_cre...@tampfl.fios.verizon.net> sniveled:
>
> >Don't be such a dumbass
>
> --You first..
Kurtie baby soiled his pants had nothing intelligent to say. But he
said it anyway.
Gandalf Grey
<RightWing...@gmail.com> wrote in message
news:6ccd3529-ce72-4d2b...@17g2000hsk.googlegroups.com...
On Oct 8, 12:22 pm, Kurt Lochner <kurt_loch...@NOSPAMhotmail.com>
wrote:
> "shallow, cretin" <shallow_cre...@tampfl.fios.verizon.net> sniveled:
>
> >Don't be such a dumbass
>
> --You first..
% Kurtie baby
Looks like Shill woke up all crabby after Manchurian McSame lost the second
debate and torpedoed any chance he had left of turning the election around.
Poor Shill. His party is toast, his candidate is doomed and Shill is still
going to have to seek seasonal field work for the next decade while trying
to hold down his janitorial job. If you had just finished High School,
Shill.
4787 Dead
>On Wed, 8 Oct 2008, 4787 Dead wrote:
>
>> On Wed, 8 Oct 2008 07:10:29 -0700 (PDT), BillaryCl...@gmail.com
>> wrote:
>>
>>> Yet pending home sales are up 7.4%. Looks like we're making a very
>>> nice bottom in the housing market. Prices are so low that the buyers
>>> are back. Every business cycle has a boom and a bust. This business
>>> cycle is no different.
>>
>> Do you know why they are "pending", cupcakes?
>>
>> It's because the banks aren't making any fucking LOANS!
>
>Odd. Real estate is still moving here in Austin. In fact some good
>friends of ours just sold their home. I doubt people are running around
>with $170,000 in cash buying houses so someone must be loaning them money.
>
>John
they don't know how lucky they are.
4787 Dead
wrote:
Actually, that's vanishing rapidly right now. Don't you even watch
News for Boobs on Faux? If banks aren't loaning to one another, and
their margins are getting eaten by bad debts, how are they going to
loan to you?
Steve
<zepp22...@finestplanet.com> wrote:
>On Wed, 8 Oct 2008 07:10:29 -0700 (PDT), BillaryCl...@gmail.com
>wrote:
>
>>Yet pending home sales are up 7.4%. Looks like we're making a very
>>nice bottom in the housing market. Prices are so low that the buyers
>>are back. Every business cycle has a boom and a bust. This business
>>cycle is no different.
>
>Do you know why they are "pending", cupcakes?
>
>It's because the banks aren't making any fucking LOANS!
<ROTFLMAO> Bullshit! They're just not making loans to losers like
Zepp....
Canyon note: Zepp doesn't even understand the financial terms, let alone
how a mortgage works or how the economy works
"So how come we just had an economic meltdown caused by idiots
trying to pretend mortgage notes were assets?"
--David (Zepp) Jamieson Sep 23, 2008
http://groups.google.com/group/talk.politics.misc/msg/095dc573344e163f?hl=en
"And why are dividends on 401Ks considered capital gains? (They are,
when it comes time to cash the 401K in, but Steve wouldn't know that)."
David (Zepp) Jamieson Tue, 29 Jul 2008
http://groups.google.com/group/alt.society.liberalism/msg/25d56714cbea3db9?hl=en
If Nevermore tries paying cap gains with a 1040, he'll
be in jail soon enough.
--Zepp Jamieson, Dec 3, 2005
http://groups.google.com/group/alt.atheism/msg/30fdaff423e2029b?hl=en&
More stupid claims by Jamieson
"I just found out that Condoleezza Rice, [...], the National Security
advisor, spend last evening attending a Broadway play."
--Zepp Jamieson Sep 1, 2005
http://groups.google.com/group/alt.fan.rush-limbaugh/msg/30ffcc5ea636...
"Electricity in California was a publically-held utility (i.e.,
government-run) from 1895 until 1998. It took privatization
of the generation plants to fuck everything up
beyond belief."
David (Zepp) Jamieson
http://groups.google.com/group/alt.politics.republicans/msg/3ad9a56512ac8e2e?hl=en
"The first amendment means that you are protected by law from haters."
--David (Zepp) Jamieson
"http://groups.google.com/groups?oi=djq&selm=an_541474719
"Well, that's the funny thing about terrorists. If they get what they
want, they stop being terrorists."
--Zepp Jamieson
http://www.google.com/groups?selm=q5sc50lf1id03ms1i9truk78v2dk6052f5%404ax.com
"The South couldn't taken any more of the Missouri Compromise,
sensing (correctly) that it would kill slavery in the end,
and Lincoln planned to uphold it."
--Zepp Jamieson
http://www.google.com/groups?selm=9j2n5vsqfga7l2fsrt0polt2eg6lqs71hv%404ax.com
"No plane hit the Pentagon."
-- Zepp Jamieson
http://groups.google.com/group/alt.society.liberalism/msg/39d98c910d32047b?hl=en&
"Incidently, the fact that the Constitution specifies that people have
a right to vote in a presidential election pretty much takes the
choice of having [a presidential election] out of the hands of the states."
Zepp Jamieson Sun, Sep 3 2006
http://groups.google.com/group/alt.society.liberalism/msg/efb4fcac7b1561cb?hl=en&
In fact, I question the milk price, since farm supports put a "floor"
on what retailers can charge.
-- Zepp Jamieson
http://groups.google.com/group/alt.society.liberalism/msg/f7f4b713c4651011?&hl=en
"Promote the general welfare" chuckles. That means the government is
there to prevent churches, aristocracy, or corporations fron enslaving
the American people.
-- Zepp Jamieson
http://groups.google.com/group/alt.society.liberalism/msg/f5ef73efac8311bb?hl=en&
"Actually, any beach front has public access, and all state owned
(whether federal or state) must grant equal access to all. That is
the law."
David (Zepp) Jamieson more ignorance of the law
http://groups.google.com/group/alt.society.liberalism/msg/6956aa0300e311c9
Steve
wrote:
>On Wed, 8 Oct 2008 10:50:46 -0500, John Mayson <jo...@mayson.us> wrote:
>
>>On Wed, 8 Oct 2008, 4787 Dead wrote:
>>
>>> On Wed, 8 Oct 2008 07:10:29 -0700 (PDT), BillaryCl...@gmail.com
>>> wrote:
>>>
>>>> Yet pending home sales are up 7.4%. Looks like we're making a very
>>>> nice bottom in the housing market. Prices are so low that the buyers
>>>> are back. Every business cycle has a boom and a bust. This business
>>>> cycle is no different.
>>>
>>> Do you know why they are "pending", cupcakes?
>>>
>>> It's because the banks aren't making any fucking LOANS!
>>
>>Odd. Real estate is still moving here in Austin. In fact some good
>>friends of ours just sold their home. I doubt people are running around
>>with $170,000 in cash buying houses so someone must be loaning them money.
>>
>>John
>
>they don't know how lucky they are.
Actually, loans to qualifies people are going right through.. takes
a little longer... they have to be checked out... loans to losers
have dried up..
Pride is the recognition of the fact that you are your own
highest value and, like all of man’s values, it has to be
earned.
_Ayn Rand "ATLAS SHRUGGED"
nys999
news:jfepe4pfoh3uj3vi0...@4ax.com:
> http://www.nytimes.com/2008/10/09/business/09fed.html?_r=1
&hp&oref=slogin
>
> Central Banks Coordinate Cut in Rates
>
> By KEITH BRADSHER, DAVID JOLLY and EDMUND L. ANDREWS
> Published: October 8, 2008
>
> Central banks around the world cut short-term interest rates by up to
> half a percent on Wednesday after investors across Asia and Europe
> unleashed waves of sell orders onto already depressed stock exchanges.
Isn't going to accomplish a thing. Remember Japan 10-15 years ago, cutting
their interest rate to almost zero? Didn't do a thing.
The US needs pump-priming essential infrastructure construction to
kickstart demand.
Kurt Lochner
>
> 4787 Dead pointed out the flawed pseudo-reasoning posted by:
>
> >ShallowerC...@gmail.com whined impotently:
- - -
> > >Yet pending home sales are up 7.4%. Looks like we're making a very
> > >nice bottom in the housing market. Prices are so low that the buyers
> > >are back. Every business cycle has a boom and a bust. This business
> > >cycle is no different.
> >
> > Do you know why they are "pending", cupcakes?
> >
> > It's because the banks aren't making any fucking LOANS!
>
><ROTFLMAO> Bullshit! They're just not making loans to losers
Why do I get the impression that you'd know that 'first-hand'?
--And why does your 'girlfriend's' underwear cost so much?