Fed to cut interest rates AGAIN
NOTE: This article has been redacted in the interests of ISRAELI U.S. national security.
In a desperate bid to prop up the dollar and the U.S. financial markets, the Fed is expected to lower the federal funds rate this coming Tuesday. This will be the third time since the credit markets froze up over the summer of 2007.
The federal funds rate is the Fed's key rate. It's how the Fed injects liquid (THAT IS, ANOTHER HEROIN LIKE DEBT FIX) into the system. IT'S WHAT THE FED CHARGES US FOR USING MONEY, SINCE THE FED OWNS OUR MONEY.
In September, the Fed dropped the federal funds rate for the first time in four years. That was a half-point drop. On Oct. 31 the Fed lowered it again by another quarter-point. The current rate is 4.5 percent. The expected cut on Tuesday will be another quarter to a half percent. This is designed to get money THAT IS, MASSIVE DEBT into the financial markets.
(In August the Fed also lowered its lending rate to banks.)
Commercial banks will respond by lowering their prime lending rate (now at 7.5 percent) by a corresponding amount. The prime rate is what big banks charge smaller banks for loans. IN THE SPIRALING MALESTROM OF DEBT
A cut in any interest rates will probably not reduce interest rates on revolving debt, such as credit cards.
The Dow Jones industrial average has risen more than 640 points over the last two weeks, as always happens with news of a rate cut, since it means the Fed will inject more DISASTROUS DEBT liquid into the financial markets. “The market is expecting the worst, so when it doesn’t get the worst, it rallies,” said Brandon Thomas, chief investment officer for Envestnet Asset management. And with two weeks left until Christmas to shop, Wall Street wants to see consumers eager to spend. THAT IS, GO EVEN FURTHER INTO DEBT
For the rest of us, more DEBT liquid means more inflation, which will FURTHER ERODE have implications for our standard of living.
A cut in interest rates will have little or no direct effect on the sub-prime meltdown, since investors refuse to go near any securities linked to sub-prime mortgages. However, the cut will allow banks to survive a bit longer.
Whether OUR RULERS the Fed lowers rates again in 2008 will depend on how bad the meltdown is, and how clever the BASTARDS Fed can be in HIDING INFLATION balancing the economy.
Lehman Brothers Holdings Inc.’s report — the first fourth-quarter LIES report from the investment banking industry — will offer further SPIN insight into how CATASTROPHIC influential the meltdown will become.
Analysts are expecting Lehman to post a profit decline and Costco to report a profit rise.
On Monday, Wall Street will monitor DECEITFULLY SPUN data on pending home sales.
On Wednesday, Wall Street will also monitor a SUGAR-COATED BULLSHIT report on the October trade deficit, which will FURTHER DESTROY have implications for the tumbling dollar.
