Bets on Fed interest rate action next Tuesday

[swag]

They'll hold rates steady and maintain a neutral bias, that's my bet, "plunge protection team" theorists notwithstanding.

[On the Road]

1. I Just Don't Think Bernanke Will Raise Rates

with the real estate industry teetering on the edge of chaos. He's on record as being more concerned with deflation than inflation.

[truebrit71]

2. If the Fed raise rates the Dow will drop 1000+ points...

...hell, it might do that anyway, but that would be a heck of a trigger..

[ThomWV]

3. Maybe not next week, but the time is comming.

[swag]

4. Wow, stunning. People think the next move is up?

I sure don't think so.

[Blackhatjack]

5. This was the bear trap that Greenspan avoided by retiring...

Increasing edginess by foreign investors with the dollar tanking they are looking for a rate increase or they are going to pull out of US currency positions.

Catastrophic conditions abound as home foreclosures are rocking the economy, and destroying all the businesses that depend on housing. Any increase in rates will push even more people over the edge.

So the likely bet is that rates will remain the same, affecting both groups but not as much as if there is a rate rise or cut.

The next quarter activity, not the next quarter reports, will tell the story as to how bad things are likely to get before they take an upturn.

[Yavin4]

7. We Have Tons of Inflation In this Economy

Our dollar is worthless abroad, and foreign investors are getting antsy about holding our debt. On the other hand, another rate hike would kill the U.S. economy because housing would take an even worse beating.

The right thing to do is raise rates and wring out the excesses in the housing market. We have a major glut of over-priced homes.

[CountAllVotes]

14. if Bernanke does that

the market will tank. The ARMs coming due might be looking at rates of 9-10%.

This could get very ugly.

If you don't have any debt and have savings, then a rate hike would help the investor that is not invested in the stock market.

When there is debt, there is inflation.

Bernanke knows this.

He's holding down the fort until *Co is out of office IMO.

:dem: :kick:

[tammywammy]

6. I'm leaning toward hold steady

but there's still a bit of me that thinks they may lower them. Definitely not raise rates. The Fed's slow to do anything, so while I think they should lower rates, they probably won't do anything.

[Yavin4]

8. Why Do You Think That They Should Lower Rates?

Have you seen our dollar? Have you seen housing prices? We have rampant inflation in this country. A home in Compton, CA is selling for $500k!!! Compton!! Unless you're a Crip or a Blood, you have no business being there at all.

[terryg11]

9. agreed.

wouldn't want to discourage investment at this time, will be the reasoniing

[Buttercup McToots]

10. I think

:thumbsdown:

[CountAllVotes]

11. Bernake has already said he'll hold the rates until next year

I do not believe he will do anything - just issue more "inflation *warnings*".

Bernake is in a real pickle as we see. If he makes a move in either direction, the results will be devastating at this point I believe.

However, what do I know? Probably not any more than anyone else around, stock analcyst or not. :evilgrin:

:dem:

[Yavin4]

12. This Is What You Get When You Lower Rates To Prop Up Bush

Our major institutions, the Supreme Court, our mainstream media, the Fed, etc. ALL of them lied repeatedly to the American people and did everything they could to prop up the Bush regime. They ALL cheated for Bush, and now their credibility is ruined.

[Snarkoleptic]

13. Exactly! And now their only hope is black-box voting.

Plus they've looted the treasury and printed money by the truckload to finance *'s adventures abroad.
Meanwhile, we're working harder for less pay while infrastructure and education crumble around us.

[CountAllVotes]

15. yep, all credibility has been forever lost

Those that cling on and hope for a recovery will be the ultimate victims at the end IMO.