Financial Markets

[Mountain Girl]

[QUOTE=ddg1263;147626] If the fed just drops the interest rates to soon, they will not have the dry powder to fight off the slow down when it happens for real.

I just heard on the news that the fed is going to lower the interest rate at it's next meeting, if not before. Why do you think this will create another problem?

[ddg1263]

They have just said they THINK they may lower the rates. I heard the same story. If they lower interest rates the value of our dollar will be devalued. Foreign investment which holds so much of our debt will stop buying our treasuries. Now if you want to see a real credit crunch, having them not buying our treasuries would be it. As it is stated now, only the sub prime lenders are in trouble. Those are the mortgages that got their customers approved by the skin of their teeth. They probably are bad, but it isn’t the end of the world. Now housing has been a big economic boom for our country, and having it slow down will hurt. But it isn’t a melt down. I would just put my cash in healthcare and forget this ride in the markets. I am sure the hedge funds guys on Wall Street are making billions on the volatility.

[Mountain Girl]

[QUOTE=ddg1263;147653] If they lower interest rates the value of our dollar will be devalued. Foreign investment which holds so much of our debt will stop buying our treasuries. Now if you want to see a real credit crunch, having them not buying our treasuries would be it.

Oh, so when the interest rates are cut, treasury rates are lowered, which means fewer investors?

[ddg1263]

It is more like this. If the USA lowers its interest rate and say China and Japan keep their interest rate the same then investors look at their markets as a more attractive place to put money. They earn more over there. The currency markets are basically a supply and demand market. So as people stop buying the Dollar to buy say Japans Yen, then the price of the Dollar will go down. And in turn the price of the bonds will fall and interest rates will rise if no investors are out there to buy our T-bill. It is kind a confusing. Remember as interest rates INCREASE the price of the bond DECREASES. Now if the fed can gain support for a global interest rate drop, ( try and get say Germany and Japan to drop their rates too) it will add stability to allow us to lower our rates safely.

[robinhoooood]

So where do you put it, your money that is? Stocks are crashing, bye-bye money. Take it out of stocks put it in the bank or under a mattress, Doller becomes De-valued, bye bye money, seems like a no win situation...

Everyone says the market will rebound, like it always does, but for the One-world-goverment to happen, our economy has to collapse, so what if it doesn't rebound this time and it continues to sink, where do you put your money so you can survive before the rapture occurs?

Pre-Rapture Financial Planning :thumb
i thinks it's a new career waiting to explode

The market is going to be very up and down until the Fed cuts the rate, after that look for the markets to rebound... even still I would only have my money in energy and gold right now.

[4JesusLove]

If there is a collapse and I mean real collapse the best investment would be in LEAD! ;)

[jereome]

If there is a collapse and I mean real collapse the best investment would be in LEAD! ;)

Actually the best investment would be food, because you cant eat gold, silver, medicine or lead for that matter.

Also the government has a track record of stealing precious metals during an economic collapse, but food is something you cant outlaw like precious metals.

[jereome]

Revelation 6:
5 And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand.
6 And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.

The black horseman is the sign for a global economic collapse.

As we can hear his hoofbeats now, perhaps our time here is shorter than anyone would believe.

[Bernardd]

So where do you put it, your money that is? Stocks are crashing, bye-bye money.

The DOW was at record levels about 3 weeks ago. Since then, it has plummeted a wopping .5%. You call this crashing?

By the way, you do realize that there are stocks that are soaring. WOuldn't it be wise to invest in one of them?

[GodwithUS]

I don't worry about the DOW since I don't have anything in the stock market. But I do worry about the value of the dollar. The dollar is not king anymore, and foreign governments who buy into the Treasury are taking notice.

Their is a fundamental problem with our currency, the only value it has is the faith we put into it. When the powers that be divorced our currency from gold and silver, the dollar died. It is no longer redeemable.

What good is earning interest on your money when your money has no real true value to it. In hard times you can hold all the dollars in the world, but Gold has a value that can be understood.