Turmoil in financial markets, FED cuts 3/4 in emergency move

Onkel Neal · 01-22-08, 12:48 PM

Well, things on the economic front are getting interesting. US is slipping into recession, and world markets react with large losses. Today the Fed cut federal fund rates by 3/4 a percent and may follow with another cut at the next meeting. We're going down and we're taking you with us!

The media certainly loves to employ colorful terms to describe this mess; panic, free fall, bloodbath, fear...

http://online.wsj.com/article/SB120100837976106391.html?mod=special_coverage

http://www.cnn.com/video/#/video/business/2008/01/22/market.meltdown.roundtable.cnn

http://www.foxbusiness.com/markets/article/fed-slices-rate-075-possible-sign-panic_445564_2.html

http://www.cnn.com/2008/BUSINESS/01/22/markets.plunge.asia/index.html

sonar732 · 01-22-08, 12:55 PM

With having a family of 5, I'm looking forward to seeing what the president and congress come up with regarding their economic stimulus plan.

SHOW ME THE MONEY!!

XabbaRus · 01-22-08, 12:57 PM

Well from everything I have been reading this shouldn't be happening. The US govt knows the situation, Bush signed of on a package of measures the other day which should do some good, but it seems the investment market has assumed it won't happen which it has, ignored it and sold off.

So I say buy some stocks sit tight and things will be better in a couple of months.

JSLTIGER · 01-22-08, 12:59 PM

I liked the CNN graphic this morning that read "Market Meltdown." Puh-leaze... it's pretty minor right now, especially if you want to compare it to the likes of the Great Depression.

AVGWarhawk · 01-22-08, 01:13 PM

This was a long time coming. No matter, Bush will give out $700.00 checks to everyone and all will be well

.

SUBMAN1 · 01-22-08, 01:18 PM

Hmm. Might be a good time to buy some preperty to those who might be interested. Cheap rates! You might make a boatload if you hang on to it for a few years at little expense to yourself!

-S

STEED · 01-22-08, 01:38 PM

According to our great leader

Gordon Brown we are in the green and looking good to ward of any recession.

So people of Great Britain stand by for a cut in the interest rates and spend your money like crazy, just like you did under Tony Blair.

BTW if you go in the red make sure it's over £75,000 and your debt will be a write off.

GlobalExplorer · 01-22-08, 01:56 PM

Worldwide growth rates of 2-10% every year .. this cannot go on forever. If judas brought his 30 silver coins to the bank and received 5% interest rate, after 2000 years he would own 7,17 e+43 or
7173306613840656827838347127298700000000000 coins. I think this way mathematics can invalidate the concept of constant growth (that the current system is based upon). It could mean that a big crash is necessary from time to time, maybe roughly every 100 years.

I don't think this is the big crash, but there are signs that it might come in the next decades.

SUBMAN1 · 01-22-08, 02:51 PM

Quote:

Originally Posted by GlobalExplorer

Worldwide growth rates of 2-10% every year .. this cannot go on forever. If judas brought his 30 silver coins to the bank and received 5% interest rate, after 2000 years he would own 7,17 e+43 or
7173306613840656827838347127298700000000000 coins. I think this way mathematics can invalidate the concept of constant growth (that the current system is based upon).

I don't agree. You forgot to factor in inflation, which would rise at a faster rate considering everyone invested like that. Problem is, only a few invest like that, so inflation need not rise to accomidate. This invalidates your mathmatics.

-S

August · 01-22-08, 02:54 PM

So you're saying that 30 pieces of silver just doesn't buy what it used to? :p

SUBMAN1 · 01-22-08, 02:58 PM

Quote:

Originally Posted by August

So you're saying that 30 pieces of silver just doesn't buy what it used to? :p

Yeah - back in the day, you could get a house for that.

-S

GlobalExplorer · 01-22-08, 03:07 PM

Quote:

Originally Posted by SUBMAN1

Quote:

Originally Posted by August

So you're saying that 30 pieces of silver just doesn't buy what it used to? :p

Yeah - back in the day, you could get a house for that.

-S

Inflation or no inflation, do you know of a house that costs 7173306613840656827838347127298700000000000 silver coins?

SUBMAN1 · 01-22-08, 03:34 PM

Quote:

Originally Posted by GlobalExplorer

Quote:

Originally Posted by SUBMAN1

Quote:

Originally Posted by August

So you're saying that 30 pieces of silver just doesn't buy what it used to? :p

Yeah - back in the day, you could get a house for that.

-S

Inflation or no inflation, do you know of a house that costs 7173306613840656827838347127298700000000000 silver coins?

The value of a silver coin from back then is much different than now, as well as economic markets since that type of interest doesn't work. Metal prices will be where your 30 silver pieces hit a brick wall. This is of course going to hold a different value based on a collector of the period of course.

Anyway, lets analyze a single dollar if it existed in that period. This is a more accurate assesment of where you would be since it is a current currency. If you were to take a single dollar from that period, and compare it to now, your mathmatics would work out to it being worth about the same at around 5% interest. It actually would be worth a bit more, but basically, its value falls off the scope of my calculator. I will find a bigger calculator since its value is near non existant anymore. To be continued.....

Need to find something that will take 2 to the power of 100 to be able to calculate this.

-S

mookiemookie · 01-22-08, 04:20 PM

Dow fell 128 today. Not a "meltdown". The best advice I ever got from a money manager I used to work for was that the financial media is trying to sell headlines as much as anyone else, and if it bleeds, it leads. It's never as bad as they say it is and it's never as good as they make it out to be.

I'm not sure what the Fed is thinking on this one. It's certainly going to put their backs against the wall on Tuesday. Some of our traders are hearing rumblings of another 25 bp cut tomorrow and then another on Tuesday. It'll certainly be interesting to watch.

Financial armageddon? No, don't be silly. Recession and panic? Most likely. But remember, the sun will come up tomorrow, kids.

GlobalExplorer · 01-22-08, 04:29 PM

Quote:

Originally Posted by SUBMAN1

Quote:

Originally Posted by GlobalExplorer

Quote:

Originally Posted by SUBMAN1

Quote:

Originally Posted by August

So you're saying that 30 pieces of silver just doesn't buy what it used to? :p

Yeah - back in the day, you could get a house for that.

-S

Inflation or no inflation, do you know of a house that costs 7173306613840656827838347127298700000000000 silver coins?

The value of a silver coin from back then is much different than now, as well as economic markets since that type of interest doesn't work. Metal prices will be where your 30 silver pieces hit a brick wall. This is of course going to hold a different value based on a collector of the period of course.

Anyway, lets analyze a single dollar if it existed in that period. This is a more accurate assesment of where you would be since it is a current currency. If you were to take a single dollar from that period, and compare it to now, your mathmatics would work out to it being worth about the same at around 5% interest. It actually would be worth a bit more, but basically, its value falls off the scope of my calculator. I will find a bigger calculator since its value is near non existant anymore. To be continued.....

Need to find something that will take 2 to the power of 100 to be able to calculate this.

-S

Windows calc.exe can do these calculations if you switch to "Scientific".

For instance, to calculate the said interest rate of 5% for 2000 years you only take 1.05 to the power of 2000 and multiply with the amount you had at the start. If you want to calculate backwards you of course need a logarithm, something I don't want to rack my head with at this hour

Anyway, you correctly point out that my calculation is theoretic and naive, but it still cannot be passed over, because even if the result is wrong with a magnitude of 100 it is still astronomic figure.

01-22-08, 12:48 PM	#1
Onkel Neal Born to Run Silent Join Date: Jan 1997 Location: Cougar Trap, Texas Posts: 21,385 Downloads: 541 Uploads: 224	Turmoil in financial markets, FED cuts 3/4 in emergency move Well, things on the economic front are getting interesting. US is slipping into recession, and world markets react with large losses. Today the Fed cut federal fund rates by 3/4 a percent and may follow with another cut at the next meeting. We're going down and we're taking you with us! The media certainly loves to employ colorful terms to describe this mess; panic, free fall, bloodbath, fear... http://online.wsj.com/article/SB120100837976106391.html?mod=special_coverage http://www.cnn.com/video/#/video/business/2008/01/22/market.meltdown.roundtable.cnn http://www.foxbusiness.com/markets/article/fed-slices-rate-075-possible-sign-panic_445564_2.html http://www.cnn.com/2008/BUSINESS/01/22/markets.plunge.asia/index.html

01-22-08, 12:57 PM	#3
XabbaRus Navy Seal Join Date: Sep 2001 Posts: 5,330 Downloads: 5 Uploads: 0	Well from everything I have been reading this shouldn't be happening. The US govt knows the situation, Bush signed of on a package of measures the other day which should do some good, but it seems the investment market has assumed it won't happen which it has, ignored it and sold off. So I say buy some stocks sit tight and things will be better in a couple of months. __________________

01-22-08, 12:59 PM	#4
JSLTIGER The Old Man Join Date: Jan 2004 Location: Parkland, FL, USA Posts: 1,437 Downloads: 5 Uploads: 0	I liked the CNN graphic this morning that read "Market Meltdown." Puh-leaze... it's pretty minor right now, especially if you want to compare it to the likes of the Great Depression. __________________ Thor: Intel Core i7 4770K\|ASUS Z87Pro\|32GB DDR3 RAM\|11GB EVGA GeForce RTX 2080Ti Black\|256GB Crucial M4 SSD+2TB WD HDD\|4X LG BD-RE\|32" Acer Predator Z321QU 165Hz G-Sync (2540x1440)\|Logitech Z-323 2.1 Sound\|Win 10 Pro Explorer (MSI GL63 8RE-629 Laptop): Intel Core i7 8750H\|16GB DDR4 RAM\|6GB GeForce GTX 1060\|128GB SSD+1TB HDD\|15.6" Widescreen (1920x1080)\|Logitech R-20 2.1 Sound\|Win 10 Home

01-22-08, 01:13 PM	#5
AVGWarhawk Lucky Jack Join Date: Jun 2005 Location: In a 1954 Buick. Posts: 28,275 Downloads: 90 Uploads: 0	This was a long time coming. No matter, Bush will give out $700.00 checks to everyone and all will be well. __________________ “You're painfully alive in a drugged and dying culture.” ― Richard Yates, Revolutionary Road

01-22-08, 01:18 PM	#6
SUBMAN1 Rear Admiral Join Date: Apr 2005 Posts: 11,866 Downloads: 0 Uploads: 0	Hmm. Might be a good time to buy some preperty to those who might be interested. Cheap rates! You might make a boatload if you hang on to it for a few years at little expense to yourself! -S __________________

01-22-08, 12:55 PM	#2
sonar732 The Old Man Join Date: Jul 2003 Location: Central MO Posts: 1,562 Downloads: 6 Uploads: 0	With having a family of 5, I'm looking forward to seeing what the president and congress come up with regarding their economic stimulus plan. SHOW ME THE MONEY!!

01-22-08, 01:38 PM	#7
STEED Lucky Jack Join Date: Jan 2006 Location: Down Town UK Posts: 27,695 Downloads: 89 Uploads: 48	According to our great leader Gordon Brown we are in the green and looking good to ward of any recession. So people of Great Britain stand by for a cut in the interest rates and spend your money like crazy, just like you did under Tony Blair. BTW if you go in the red make sure it's over £75,000 and your debt will be a write off. __________________ Dr Who rest in peace 1963-2017. To borrow Davros saying...I NAME YOU CHIBNALL THE DESTROYER OF DR WHO YOU KILLED IT!

01-22-08, 01:56 PM	#8
GlobalExplorer Admiral Join Date: May 2005 Location: Berlin Posts: 2,015 Downloads: 165 Uploads: 0	Worldwide growth rates of 2-10% every year .. this cannot go on forever. If judas brought his 30 silver coins to the bank and received 5% interest rate, after 2000 years he would own 7,17 e+43 or 7173306613840656827838347127298700000000000 coins. I think this way mathematics can invalidate the concept of constant growth (that the current system is based upon). It could mean that a big crash is necessary from time to time, maybe roughly every 100 years. I don't think this is the big crash, but there are signs that it might come in the next decades. __________________

01-22-08, 02:54 PM	#10
August Wayfaring Stranger Join Date: Apr 2005 Location: Massachusetts Posts: 23,213 Downloads: 0 Uploads: 0	So you're saying that 30 pieces of silver just doesn't buy what it used to? :p __________________ Flanked by life and the funeral pyre. Putting on a show for you to see.

01-22-08, 04:20 PM	#14
mookiemookie Navy Seal Join Date: Nov 2005 Location: Houston, TX Posts: 9,404 Downloads: 105 Uploads: 1	Dow fell 128 today. Not a "meltdown". The best advice I ever got from a money manager I used to work for was that the financial media is trying to sell headlines as much as anyone else, and if it bleeds, it leads. It's never as bad as they say it is and it's never as good as they make it out to be. I'm not sure what the Fed is thinking on this one. It's certainly going to put their backs against the wall on Tuesday. Some of our traders are hearing rumblings of another 25 bp cut tomorrow and then another on Tuesday. It'll certainly be interesting to watch. Financial armageddon? No, don't be silly. Recession and panic? Most likely. But remember, the sun will come up tomorrow, kids. __________________ They don’t think it be like it is, but it do. Want more U-boat Kaleun portraits for your SH3 Commander Profiles? Download the SH3 Commander Portrait Pack here.