Tonight will be the last post until next weekend. It is vacation time! Try not to be too upset.
FED Meeting - Groundwork Laid for a Quarter Point
I saw on TV and in many articles all the talk of the FED coming to an end of their slash and burn rate cut rampage. Not only that, but many are even seriously convinced that the rate cuts did nothing to help the housing market! Well, welcome to clear thinking boys!
The FED will have their announcement on the 30th. 25bps, 50bps are the only two contenders here with no cut a remote possibility. How the markets react will be key to figuring how long the current rally will last. My guess is 25bps, with the rate then at 2% and a big market rally on the whole "the FED would only stop cutting if things were great!" idea. Poor kids.
Rebate Checks in the Mail
The whopping $600-$1200 rebate checks will begin arriving this week. Free money! Oh wait, the government is giving me money, which comes from......my own taxes? Not really free is it? Whatever.
Anyway, this is supposed to kick start spending. Like most things from this administration, just spending money and acting like everything is great will not work. I cannot understand why the government just did not give the entire stimulus plan money directly to the companies in the DOW and S&P and sidestep the whole consumer angle. Like most things, they always do it the hard way!
Have a good week.