Comments on: Better be a one full percentage cut http://www.1stMillionAt33.com/2008/03/better-be-a-one-full-percentage-cut/ A site to share my tips, tools, and humble thoughts on the journey to wealth Sun, 02 Oct 2011 19:26:45 +0000 hourly 1 http://wordpress.org/?v=abc By: Doug http://www.1stMillionAt33.com/2008/03/better-be-a-one-full-percentage-cut/comment-page-1/#comment-4018 Doug Wed, 19 Mar 2008 09:05:11 +0000 http://www.1stMillionAt33.com/2008/03/better-be-a-one-full-percentage-cut/#comment-4018 Well, it was only 75 basis points, but the stock market responded. Not sure if I would put any "stock" in that, though. The huge rally from last week was wiped out by Monday. Same could happen here. If we are headed toward the hyperinflation you project, P/Es will have to fall mightily, even as earnings, in nominal terms, accelerate. I think this is possible. I don't think we're half way through the bear, though. Credit issues are only beginning to seep through to the real economy - that is when we will see the big drop in earnings and the big layoffs starting. I suppose the dollar will continue to slide. Any chance the the ECB or BoJ or BoE will will start reducing rates and defending the dollar in a coordinated way? Well, it was only 75 basis points, but the stock market responded. Not sure if I would put any “stock” in that, though. The huge rally from last week was wiped out by Monday. Same could happen here.

If we are headed toward the hyperinflation you project, P/Es will have to fall mightily, even as earnings, in nominal terms, accelerate. I think this is possible.

I don’t think we’re half way through the bear, though. Credit issues are only beginning to seep through to the real economy – that is when we will see the big drop in earnings and the big layoffs starting.

I suppose the dollar will continue to slide. Any chance the the ECB or BoJ or BoE will will start reducing rates and defending the dollar in a coordinated way?

]]> By: Llama Money http://www.1stMillionAt33.com/2008/03/better-be-a-one-full-percentage-cut/comment-page-1/#comment-4012 Llama Money Tue, 18 Mar 2008 15:41:52 +0000 http://www.1stMillionAt33.com/2008/03/better-be-a-one-full-percentage-cut/#comment-4012 The Fed "should" make a zero point cut. Inflation is out of control and worsening... lowering rates might maybe help things short term while making the big picture worse long term. Short-term thinking is not the way out of this mess.... taking our blows right now, today, and learning from our mistakes is. The Fed “should” make a zero point cut. Inflation is out of control and worsening… lowering rates might maybe help things short term while making the big picture worse long term. Short-term thinking is not the way out of this mess…. taking our blows right now, today, and learning from our mistakes is.

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