Fed cuts funds rate 75 basis points

[1982vett]

The Federal Reserve cut federal funds rate 75 basis points today to 2.25%. So all of you that have CD's maturing anytime soon are going to be disapointed when the bank offers you 2% or less to use your money. Yesterday 180 day T-bills auctiond at 1.31% and 90 day bills went for 1.1%, 2-year notes were 2%. With inflation running around 3.2% no one needs to be in the cattle business to be able to lose money. All you have to do is bank it.



Any ideas where you might invest to earn a better return.

 

[Jim62]

Mutual funds are always good. At least some times. I was in when 9-11 happened. Lost about 60% overnight. Can't afford that now.

I see no choice other than CDs. :cry2:

 

[Caustic Burno]

Feds are going the wrong way need to slow down this credit society. They shouldn't have used taxpayer dollars to bail out Bear and Sterns for making bad loans.

DODIX has been a steady performer over the years

 

[auctionboy]

From what I hear and read this will make the dollar worth even less and the correct thing would be to take our bruises and stop feading the storm and making a far larger problem in the future.

 

[Crowderfarms]

From what I hear and read this will make the dollar worth even less and the correct thing would be to take our bruises and stop feading the storm and making a far larger problem in the future.

This has got to be about the only sensible comment i ever read from you. Atta boy!

 

[auctionboy]

From what I hear and read this will make the dollar worth even less and the correct thing would be to take our bruises and stop feading the storm and making a far larger problem in the future.

This has got to be about the only sensible comment i ever read from you. Atta boy!

Don't get to excited I said these are things I read and heard and not my original thoughts. I think the top problem is a spoiled society living over there means that needs a government that will tell them NO and thinks are going to be bad. This bandaid they are stairing at needs to get ripped of quick, or the problem is compounding and we need to take the pain before things are going to get better.

 

[hillrancher]

Don't get to excited I said these are things I read and heard and not my original thoughts. I think the top problem is a spoiled society living over there means that needs a government that will tell them NO and thinks are going to be bad. This bandaid they are stairing at needs to get ripped of quick, or the problem is compounding and we need to take the pain before things are going to get better.king of all that is auctionsauctionboy
Rancher


Auctionboy I will agree with you on all. This the thoughts of most self employed and working.

 

[Wewild]

Feds are going the wrong way need to slow down this credit society. They shouldn't have used taxpayer dollars to bail out Bear and Sterns for making bad loans.

Good post.

Irresponsible loans that where given and taken have created a mess that may make the savings and loan disaster look like a mere wet spot in a swamp. $30 billion and counting.

 

[auctionboy]

Feds are going the wrong way need to slow down this credit society. They shouldn't have used taxpayer dollars to bail out Bear and Sterns for making bad loans.

Good post.

Irresponsible loans that where given and taken have created a mess that may make the savings and loan disaster look like a mere wet spot in a swamp. $30 billion and counting.

Where is Jimmy Stewart when you need him?

 

[larryshoat]

Feds are going the wrong way need to slow down this credit society. They shouldn't have used taxpayer dollars to bail out Bear and Sterns for making bad loans.

Good post.

Irresponsible loans that where given and taken have created a mess that may make the savings and loan disaster look like a mere wet spot in a swamp. $30 billion and counting.

All so very true, but it's too late to close the barn door now that the cows are out .The scary part is all that money these clowns lost belonged to somebody .We all would probably be unpleasantly surprised to find out some of that money belonged to us . As somebody pointed out earlier with inflation at least double if not triple what you can get for money in the bank, guess who will bail this mess out ? The fed lowers
rates ,the bank adds most of that to their spreads .In my mind there is no question about how the banks plan on getting healed up . The only question will they be able to legally steal enough of the depositors money to get the job done . For us we have only two choices, take back an inflated dollar or get no dollar back at all .I think Bernancke's hands are tied, he either lowers interest rates and pumps money into the system or faces meltdown .

Larry

 

[auctionboy]

The meltdown will happen but lowering the rate will only delay the meltdown but not for long and make it much worse. It is like getting in trouble with your parents and lying about it, the beating is delayed a short time, but it will be much worse.

 

[larryshoat]

The meltdown will happen but lowering the rate will only delay the meltdown but not for long and make it much worse. It is like getting in trouble with your parents and lying about it, the beating is delayed a short time, but it will be much worse.

When you hear about those banks losing billions of dollars it seems abstract . In the case of a mletdown if you have $10,000 in the bank and only get back $2500 it will not be as hard to understand .

Larry

 

[auctionboy]

The meltdown will happen but lowering the rate will only delay the meltdown but not for long and make it much worse. It is like getting in trouble with your parents and lying about it, the beating is delayed a short time, but it will be much worse.

When you hear about those banks losing billions of dollars it seems abstract . In the case of a mletdown if you have $10,000 in the bank and only get back $2500 it will not be as hard to understand .

Larry

Abstract? This is a real problem and I am saying it should be dealt with in a real way, not by covering our eyes and hope it gets better. People will loose money, your example may happen, I understand perfectly. I may be cold about the whole situation, but down the road that $2500 may become $0. I understand the situation very well, I think this country neads an axe man.

 

[larryshoat]

The meltdown will happen but lowering the rate will only delay the meltdown but not for long and make it much worse. It is like getting in trouble with your parents and lying about it, the beating is delayed a short time, but it will be much worse.

When you hear about those banks losing billions of dollars it seems abstract . In the case of a mletdown if you have $10,000 in the bank and only get back $2500 it will not be as hard to understand .

Larry

Abstract? This is a real problem and I am saying it should be dealt with in a real way, not by covering our eyes and hope it gets better. People will loose money, your example may happen, I understand perfectly. I may be cold about the whole situation, but down the road that $2500 may become $0. I understand the situation very well, I think this country neads an axe man.

Your preaching to the choir here auctionboy . I think what the fed is trying to avoid is the kind of panic that gripped the country in 1929 . I don't think we are that far from that .Anyway I'm tired of thinking about it for today . Have a good one .

Larry

 

[Ryder]

The meltdown will happen but lowering the rate will only delay the meltdown but not for long and make it much worse. It is like getting in trouble with your parents and lying about it, the beating is delayed a short time, but it will be much worse.

When you hear about those banks losing billions of dollars it seems abstract . In the case of a mletdown if you have $10,000 in the bank and only get back $2500 it will not be as hard to understand .

Larry

Abstract? This is a real problem and I am saying it should be dealt with in a real way, not by covering our eyes and hope it gets better. People will loose money, your example may happen, I understand perfectly. I may be cold about the whole situation, but down the road that $2500 may become $0. I understand the situation very well, I think this country neads an axe man.

In my humble opinion, it is too late to deal with it in a real way.

That should have been done years ago. But it wasn't.

 

[Ryder]

The Federal Reserve cut federal funds rate 75 basis points today to 2.25%. So all of you that have CD's maturing anytime soon are going to be disapointed when the bank offers you 2% or less to use your money. Yesterday 180 day T-bills auctiond at 1.31% and 90 day bills went for 1.1%, 2-year notes were 2%. With inflation running around 3.2% no one needs to be in the cattle business to be able to lose money. All you have to do is bank it.



Any ideas where you might invest to earn a better return.

Commodities, gold, silver, oil are the hot markets now. They are pretty much due for a correction, but then take off again.

 

[Caustic Burno]

If this does colapse which I believe it will just how far no one knows. The scary part is if this goes like 1929 then 70% of the country was on the farm, today they are in the city. Thats a lot of people we have raised in a chicken coup, they have no idea how to raise and prepare food.
Stock up on ammunition.

 

[Crowderfarms]

My Pa on my mom's side died way before I was bornt but they lived outside Atlanta, and he told Mom about fellers jumping out of office windows downtown, during the depression. i just wonder if Politicians and of the like will do that someday, or was that back when there were honest men that would not steal their way back into riches?

 

[backhoeboogie]

Stock up on ammunition.

:lol:


People now days also don't deal with currency much. It is all direct deposit, direct payment, and debit card. Almost like playing monopoly with play money. They need to stop and think about where it is going.

 

[Crowderfarms]

BHB, We have a major malfunction with "Common Sense" There just aint a lot of it available anymore when you hear the stories of how people exist robbing Peter to pay Paul with credit cards, and using equity in their homes as a bank.