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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (85255)	8/17/2007 10:11:52 AM
From: Paul Kern	Read Replies (2) \| Respond to of 110194

Cuts in the discount rae usually are followed soon by cuts in the funds rate. My crystal ball is still out for repair but I don't see how the fed can cut without trashing the dollar and and pushing inflation way up since so much of what we buy is from overseas. Think if it was two bucks a euro and less than 100 yen to the dollar. I wouldn't be surprised to see another cut at the discount window to keep the banking system functioning smoothly until these CDO's and MBSs can be valued.