Global Rate Cut 50 Basis Point Cut

Snooks · 10-08-2008, 11:07 AM

Coordinated Global Rate Cut!

Snooks · 10-08-2008, 11:19 AM

http://www.cnbc.com/id/27079630

Steve_A · 10-08-2008, 11:28 AM

Hi Snooks,

Rate cuts are not always seen as a good thing. As the governments are 'lending' themselves money, of course they will reduce the national interest rate to reduce the repayments back to themselves. On the other hand, they will also reduce the amount they receive from oter countries to which they have lent money.

I think they cut interest rates, hoping that this universal 'bailout' will be a short term thing, so that when the time comes for them to pay themselves back it won't hit the % of their GDP figures too much. Then they will hike up the interest rates to squeeze more out of foreign debt.

If the global economic crisis sustains a lengthy period, the countries will lose out on receiving payments of their foreign debt, which could ruin the chance of them to invest in things like infra-structure and the like.

Best regards,

Steve

Quote:

Originally Posted by Snooks

Coordinated Global Rate Cut!

Snooks · 10-08-2008, 11:41 AM

Hi Steve

I agree about rate cuts not always being a good thing.
This rate cut is completely unprecedented, and historical, in that there has never been a global coordination to cut rates simultaneously. I believe it really shows the nature of how serious this crisis is.

On a further note, it really confirms the Half Past Human "Release Language" story.

"CDS's & The Showdown at the Linguistic Corral

For more than a year, the linguistics work of www.halfpasthuman.com has been pointing with a high degree of specificity to October 7, 2008 at 07:10 UTC as a 'moment' on the timeline when the whole world will stop its 'tension building language around present events and will shift into what we call 'release language'. To explain a bit further, the events we have seen recently have been predominately the kind that cause us to suck in breath, and hold it, very much like I'm watching the U.S. futures markets which show the SPOO's down about 3% while things in the UK are right on the verge of collapse. If the language is right, 'you ain't seen nothing yet' and the balance of this week should be the mother of all economic events that will be referred to in future textbooks as the (whatever-they-call-it) of 2008."

Thank you for your insight Steve.
Best Regards!

10-08-2008, 11:07 AM	#1
Snooks Avalon Senior Member Join Date: Oct 2008 Location: Jacksonville, FL. Posts: 12	Global Rate Cut 50 Basis Point Cut Coordinated Global Rate Cut!

10-08-2008, 11:19 AM	#2
Snooks Avalon Senior Member Join Date: Oct 2008 Location: Jacksonville, FL. Posts: 12	Re: Global Rate Cut 50 Basis Point Cut http://www.cnbc.com/id/27079630

10-08-2008, 11:41 AM	#4
Snooks Avalon Senior Member Join Date: Oct 2008 Location: Jacksonville, FL. Posts: 12	Re: Global Rate Cut 50 Basis Point Cut Hi Steve I agree about rate cuts not always being a good thing. This rate cut is completely unprecedented, and historical, in that there has never been a global coordination to cut rates simultaneously. I believe it really shows the nature of how serious this crisis is. On a further note, it really confirms the Half Past Human "Release Language" story. "CDS's & The Showdown at the Linguistic Corral For more than a year, the linguistics work of www.halfpasthuman.com has been pointing with a high degree of specificity to October 7, 2008 at 07:10 UTC as a 'moment' on the timeline when the whole world will stop its 'tension building language around present events and will shift into what we call 'release language'. To explain a bit further, the events we have seen recently have been predominately the kind that cause us to suck in breath, and hold it, very much like I'm watching the U.S. futures markets which show the SPOO's down about 3% while things in the UK are right on the verge of collapse. If the language is right, 'you ain't seen nothing yet' and the balance of this week should be the mother of all economic events that will be referred to in future textbooks as the (whatever-they-call-it) of 2008." Thank you for your insight Steve. Best Regards!