Archive for the ‘rate cut’ Category

Government initiative to slow down the housing meltdown will probably fail and make matters worse. I suspect the intent of plan by the US govt is to keep a bunch of homes from being placed on the market all at once and depressing prices.

As far as I am concerned, most borrowers should suffer the consequences of being foreclosed on. If they were too dumb to read the contract or understand it and were too cheap or lazy to hire a lawyer to interpret it for them and explain it to them, then they deserve to have their lives ruined (I know, I’m a cruel, heartless bastard). I mean, buying a home is *only* the biggest, most expensive purchase that most will ever make in their lifetime, and to claim that they signed hundreds of pages of legal documents without reading them or understanding simple terms like adjustable rates is ludicrous.

Today’s 25bp cut to the Fed Fund rate and Discount rate was clearly considered to be too little by the market. Boo hoo. Wall Street didn’t get what it wanted.


But don’t you worry, considering that Bernanke is a bitch to Wall Street, I suspect the Fed will reveal a ‘surprise’ 25bp cut to the discount rate before the next FOMC meeting.




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Another rate cut?


Why not? And why not throw in a free pair of steak knives so that the dickheads on Wall Street can stab themselves in the face.

Some market commentators are going on about a resilient US economy. If that’s the case, stop cutting rates. Rate cuts are for wimps.

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My suspicions are that this will be nothing more than a bounce.

Personally, I didn’t see the need for this 25bp rate cut.  I would have thought a wait and see approach might have been better.  But what do I know?  The Fed knows best right? Right???

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But seriously, today’s jobs data makes the Fed look like a fool for cutting rates so drastically. For now, Jim Rogers appears to be right about the rate move.

There’s little denying that the big surprise cut is nothing more than a Wall Street bailout.

There was a big up move on the 30-Year Treasury Yield Index. You’d think that the dollar would get a decent bid, but no – it rips then cracks to the downside.

NDX easily breached weekly R2 at 2136, and now sits at monthly R1 (around 2148). It also cracked my earlier noted ‘heavy resistance’. If this continues, we should accelerate to the upside towards 2204 and then possibly 2306 (of course, this assumes we accelerate upwards). I think we will tag 2306 by year end.  Dow is targeting 14260 first, then 14630. If we do correct here, downside for October is limited to 13630.

I’ll leave you with this clip. Sort of sums up how the idiotic beartards have fumbled the ball late August and gave bulls the upper hand.


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Beartards are smacked

Rate cut 50bps, beyond most people’s expectations. Ha!!!!!!!! Like I said, if you had faded my ‘expectations of a fall’ after the announcement, you would have made money.

Anyway, it was the bears that got a taste of whoop ass. New highs here we go?


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A can of whoop ass will be opened at 2:15pm in US trading.


Whether it is for the bulls or bears is yet to be determined. Lehman earnings will set the early tone.

Last but not least:


Where will the speculative fever flow next?

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I reckon Big Ben will set the markets on fire with a huge breakout.  All we need is a whisper of a rate cut and we’re good to go.  As such I’m looking forward to positioning myself on the long side with ESU7 or a carry trade prior to the speech.  I’ll need to look at where to put the stops on these trades as I’m sure as heck that there’ll be violent moves that shake a lot of people out of good positions.

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