what should the Fed do today?

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In a few hours the Fed will announce what they will do with current interest rates. My preference would be (1) to do nothing, (2) choice would be to drop 50 basis points and lastly (3) to drop 25 basis points

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take out a hit on Brittney....

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Expose ,Educate ,Enthuse
Bernanke can either be a statesman---and tell the country the truth about our dysfunctional financial system which is breaking down from years of corruption, deregulation and manipulation---
or he can take the cowards-route and "buy some time" by flooding the system with liquidity, stimulating more destructive consumerism, and condemning the nation to an avoidable cycle of double-digit inflation.
http://www.informationclearinghouse.info/article18410.htm

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Well the show is over and the drop is 50 basis points, the Dow immediately rose to over 200 on the day. I guess inflation concerns no longer exist.

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Cowardly way of controlling the economic collapse.
A wayto buy some times to breath
than spending time to cure the disease.
Goodluck

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Drop half a point!

I'm happy - I am relocating next year and will need all the help I can to help sell my house and the lowering of interest rates will also help in securing a new mortgage at lower rate too.

Of course this is purely selfish.

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Linkat wrote:

Drop half a point!

I'm happy - I am relocating next year and will need all the help I can to help sell my house and the lowering of interest rates will also help in securing a new mortgage at lower rate too.

Of course this is purely selfish.

Yup. I hate to break it to you as well - it won't really help the housing market a bit.

You'll probably get the new mortgage at a lower rate, but I doubt that there have been tons of people out there waiting on the rates to drop to buy a house; it's not a good time to buy, period... the market still has a long, long way down to go.

Cycloptichorn

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Mortgage rates are pegged to the 10 year note not the Fed Funds rate, although there could be some correlation.

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Cycloptichorn wrote:

Linkat wrote:
Drop half a point!

I'm happy - I am relocating next year and will need all the help I can to help sell my house and the lowering of interest rates will also help in securing a new mortgage at lower rate too.

Of course this is purely selfish.

Yup. I hate to break it to you as well - it won't really help the housing market a bit.

You'll probably get the new mortgage at a lower rate, but I doubt that there have been tons of people out there waiting on the rates to drop to buy a house; it's not a good time to buy, period... the market still has a long, long way down to go.

Cycloptichorn

I won't sell until next year - but on the positive side it will help me to purchase.

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So Bernanke is an expert on the Great Depression. The beginning of the depression started with something much like our current credit crunch although there were many other things going on there as well. Bernanke's expert opinion (stated in a book he wrote that pretty much changed the way economists look at the depression) was that the government could have staved off the depression by injecting money into the system in a timely way. He is living his beliefs and trying not to repeat history.

Good reads on Bernanke
NPR Article and text of Bernanke Speech
Story on rate cut

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Roxxxanne wrote:

Mortgage rates are pegged to the 10 year note not the Fed Funds rate, although there could be some correlation.

You are correct - there is usually a correlation - Bank of America has cut its prime rate once the Fed rate was announced which in turn will be a benchmark for mortgage rates and other products.

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what should the Fed do today?

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