To all on Fed interest rates....
Apparantly, this has sparked some discussion on the board this weekend, so let me make a few comments.
First, this is a great forum. Let's not ruin it. We are here to DISCUSS things, not argue. At times, information comes up that may be wrong, and if so, let's all work together to find out the truth. Leave the name calling out...if you disagree, post why and let's talk about it.
Now, concerning the rate cuts. I think you will find your answer in the following graph which shows the period between 1929 and 1935, where the DOW was, when interest rate changes were made and what they were. You'll notice that at the top of the Market in mid 1929 the FED rate was at 6%. From that time until mid 1931, eight rate cuts were made in succession to bring the rate down to 1.5%. Notice this was NOT the bottom of the market. Two rate hikes were then made later that year and then 2 rate cuts after that before the bottom was finally in almost a YEAR after the first eight cuts and almost 3 YEARS after the first cut. The most important thing to remember is that the rate went from 6% down to 1.5% and the bottom was still not in.
geocities.com
Now, let's put this issue to rest and discuss ways to make a little money.
Velo |
