http://moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/ Global Investment News Fri, 19 Mar 2010 14:34:57 -0500 http://wordpress.org/?v=2.9.1 hourly 1 http://moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/comment-page-1/#comment-8496 Banks Create Fund to Help to Fight Woeful Credit Market Wed, 09 Dec 2009 05:32:01 +0000 http://www.moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/#comment-8496 [...] Had the U.S. commercial paper market remained open, liquid and efficient, all would have been well. The SIVs would profit from the difference between the yields on the mortgages and the cost of the commercial paper (if the mortgages were at a fixed rate, while the commercial paper cost went up and down with short term rates, an interest rate swap employed as a ‘hedge’ would solve the problem). But the growing global subprime scandal then generated a crisis of confidence in the worldwide commercial paper market, forcing central banks worldwide to intervene. They injected capital into the marketplace, and U.S. Federal Reserve policymakers on Sept. 18 finally slashed short-term interest rates by a bigger-than-expected half a percentage point. [...] [...] Had the U.S. commercial paper market remained open, liquid and efficient, all would have been well. The SIVs would profit from the difference between the yields on the mortgages and the cost of the commercial paper (if the mortgages were at a fixed rate, while the commercial paper cost went up and down with short term rates, an interest rate swap employed as a ‘hedge’ would solve the problem). But the growing global subprime scandal then generated a crisis of confidence in the worldwide commercial paper market, forcing central banks worldwide to intervene. They injected capital into the marketplace, and U.S. Federal Reserve policymakers on Sept. 18 finally slashed short-term interest rates by a bigger-than-expected half a percentage point. [...]

]]> http://moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/comment-page-1/#comment-132 Federal Reserve, Bank of China Cut Interest Rates as Financial Crisis Deepens Wed, 01 Apr 2009 14:23:18 +0000 http://www.moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/#comment-132 [...] is the ninth time that the central bank has lowered rates since September 2007. The Fed has also loaned hundreds of billions of dollars to banks through a new lending program [...] [...] is the ninth time that the central bank has lowered rates since September 2007. The Fed has also loaned hundreds of billions of dollars to banks through a new lending program [...]

]]> http://moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/comment-page-1/#comment-131 Former IMF Economist Predicts "Whopper" U.S. Bank Failure, Says Global Financial Crisis Set to Get Much Worse Thu, 26 Mar 2009 19:22:41 +0000 http://www.moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/#comment-131 [...] and led U.S. Federal Reserve policymakers to slash the benchmark Federal Funds rate from 5.25% last September all the way down to 2% earlier this [...] [...] and led U.S. Federal Reserve policymakers to slash the benchmark Federal Funds rate from 5.25% last September all the way down to 2% earlier this [...]

]]> http://moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/comment-page-1/#comment-130 Third Quarter GDP Suggests U.S. Has Entered Into Recession Fri, 31 Oct 2008 12:42:27 +0000 http://www.moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/#comment-130 [...] The U.S. Federal Reserve cut its benchmark Federal Funds rate to 1% Wednesday, hoping the move would further unfreeze lending and also lessen the financial fallout wrought by the credit crisis. It marked the ninth time the central bank has lowered rates since September 2007. [...] [...] The U.S. Federal Reserve cut its benchmark Federal Funds rate to 1% Wednesday, hoping the move would further unfreeze lending and also lessen the financial fallout wrought by the credit crisis. It marked the ninth time the central bank has lowered rates since September 2007. [...]

]]> http://moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/comment-page-1/#comment-129 Fed Policymakers Forced to Balance Weak Growth and High Inflation at Tomorrow's FOMC Meeting Mon, 15 Sep 2008 00:41:56 +0000 http://www.moneymorning.com/2007/09/19/%e2%80%98super-sized%e2%80%99-rate-cut-spurs-super-steep-rally-dow-soars-nearly-336-points/#comment-129 [...] cut in four years, and prompted the biggest single-day stock-market rally in five and a half years. Investors responded to the “super-sized” rate cut by sending the Dow Jones Industrial Average up nearly 336 [...] [...] cut in four years, and prompted the biggest single-day stock-market rally in five and a half years. Investors responded to the “super-sized” rate cut by sending the Dow Jones Industrial Average up nearly 336 [...]

]]>