Fed Cuts Rate 4.75, UK banks down sharply and Lehman profits down as well

[lance]

Fed cuts interest rate to 4.75%
The Federal Reserve decides to cut US interest rates by 0.5%, more than had been expected.

Banking shares fall across Europe
Euro coins
Banks in the eurozone get access to cash from the ECB
Banking shares have been falling across Europe as savers continue to withdraw money from the troubled British bank Northern Rock.

The firm's boss told the Independent newspaper that three unnamed Spanish banks had sought help from the European Central Bank (ECB).

Although the ECB denied any Spanish banks had used emergency financing facilities, their shares were hit.

French and Italian banks were also hit on fears of financial woes spreading.

Banks in the eurozone are entitled to use the ECB's routine liquidity facilities, but the ECB stresses that using that does not suggest they are in difficulties.

No other bank matched the falls in Northern Rock shares, which plunged 35% by the end of trading in London.


Profit falls at Lehman Brothers
Lehman Brothers headquarters in New York
Lehman's results were better than expected
The US investment bank Lehman Brothers has reported a small fall in three-month profits, but the figures were still better than expected.

Net income between June and August fell 3% to $887m (£445m).

ME...While it went widely unreported three British banks had runs on them yesterday.

How will this all effect the war and us ?

http://news.bbc.co.uk/2/hi/business/7000802.stm

[Crow]

Fed cuts interest rate to 4.75%
The Federal Reserve decides to cut US interest rates by 0.5%, more than had been expected.

Banking shares fall across Europe
Euro coins
Banks in the eurozone get access to cash from the ECB
Banking shares have been falling across Europe as savers continue to withdraw money from the troubled British bank Northern Rock.

The firm's boss told the Independent newspaper that three unnamed Spanish banks had sought help from the European Central Bank (ECB).

Although the ECB denied any Spanish banks had used emergency financing facilities, their shares were hit.

French and Italian banks were also hit on fears of financial woes spreading.

Banks in the eurozone are entitled to use the ECB's routine liquidity facilities, but the ECB stresses that using that does not suggest they are in difficulties.

No other bank matched the falls in Northern Rock shares, which plunged 35% by the end of trading in London.


Profit falls at Lehman Brothers
Lehman Brothers headquarters in New York
Lehman's results were better than expected
The US investment bank Lehman Brothers has reported a small fall in three-month profits, but the figures were still better than expected.

Net income between June and August fell 3% to $887m (£445m).

ME...While it went widely unreported three British banks had runs on them yesterday.

How will this all effect the war and us ?

http://news.bbc.co.uk/2/hi/business/7000802.stm

I'm glad I have my money in Iraqi banks where its safe!:bear:

[DinarInMikeswrld1]

Fed cuts interest rate to 4.75%
The Federal Reserve decides to cut US interest rates by 0.5%, more than had been expected.

Banking shares fall across Europe
Euro coins
Banks in the eurozone get access to cash from the ECB
Banking shares have been falling across Europe as savers continue to withdraw money from the troubled British bank Northern Rock.

The firm's boss told the Independent newspaper that three unnamed Spanish banks had sought help from the European Central Bank (ECB).

Although the ECB denied any Spanish banks had used emergency financing facilities, their shares were hit.

French and Italian banks were also hit on fears of financial woes spreading.

Banks in the eurozone are entitled to use the ECB's routine liquidity facilities, but the ECB stresses that using that does not suggest they are in difficulties.

No other bank matched the falls in Northern Rock shares, which plunged 35% by the end of trading in London.


Profit falls at Lehman Brothers
Lehman Brothers headquarters in New York
Lehman's results were better than expected
The US investment bank Lehman Brothers has reported a small fall in three-month profits, but the figures were still better than expected.

Net income between June and August fell 3% to $887m (£445m).

ME...While it went widely unreported three British banks had runs on them yesterday.

How will this all effect the war and us ?

http://news.bbc.co.uk/2/hi/business/7000802.stm
The US market as a whole was up big time on this rate cut. Up over 300.....I think I heard it was the largest single day gain in 4 years. On a day like this I'm glad I have a little invested in the US markets.
Outside of the markets, I do not think we'll see much of an effect on the war or our little Iraqi investment.

[buck74]

Good one. :D



I'm glad I have my money in Iraqi banks where its safe!:bear:

[yunowu]

The rate cut will help the housing sector !! But the inflation will go thru the roof !! :( :( :(

[lance]

I'm glad I have my money in Iraqi banks where its safe!:bear:

It is sad that might be true, MOMMA is shopping for a new pad as we speak. Do we know when the FED meets next? Another lop perhaps. Will the rate cut be enough to calm investors nerves. The rest of the world is doing back flips.

[Crow]

Good one. :D

I tell you, I'm ready to lose my my mind, we need something to happen, anything, my God!

[DinarInMikeswrld1]

It is sad that might be true, MOMMA is shopping for a new pad as we speak. Do we know when the FED meets next? Another lop perhaps. Will the rate cut be enough to calm investors nerves. The rest of the world is doing back flips.

Apparently the cut was enough to calm investors in the stock market, but
Jim Cramer from mad money said two more rate cuts coming.
I heard the financial CEO from countrywide financial saying that there needs to be another .5 cut to help housing.
Also heard today that the housing market is expected to continue drop by huge amounts in the next year or so.
Might be worth holding off on a new pad for just a little while.

[Crow]

The truth is I will have made more money in Iraq then the U.S, well I know that because I lost money in the U.S!:puke:

[Crow]

The truth is I will have made more money in Iraq then the U.S, well I know that because I lost money in the U.S!:puke:

Construction and realestate true, but old blue chip stock postions did save me! Don't ever blow off the oldtimers, they know, thanks Uncle John!:happy64:

[lance]

Apparently the cut was enough to calm investors in the stock market, but
Jim Cramer from mad money said two more rate cuts coming.
I heard the financial CEO from countrywide financial saying that there needs to be another .5 cut to help housing.
Also heard today that the housing market is expected to continue drop by huge amounts in the next year or so.
Might be worth holding off on a new pad for just a little while.

Almost sounds like you are suggesting an ARM? We have been looking for awhile now, stole our current house at an auction and now it is fixed up and almost ready to market. Or rent.

[DinarInMikeswrld1]

Almost sounds like you are suggesting an ARM? We have been looking for awhile now, stole our current house at an auction and now it is fixed up and almost ready to market. Or rent.
Well, you probably know that the mortgage companies have taken a huge hit in the last couple of months.
Many home owners defaulting because of large payments becoming due because of the creative financing that was going on.
Mortgage financing options might be a bit limited in the near future.
But its the price of homes that they are expecting to get slammed during the next year.
There are worries that many more home owners are going to lose all their equity and end up defaulting on loans, meanwhile the price of homes
is expected to continue to drop.
Its starting to be a good time to be a buyer, but it seems that it will get better still if you can wait a while.

[lance]

Northern Rock woes reminder of bank runs threat
Tue Sep 18, 2007 12:56pm EDT

Market News
Oil climbs near record over $82
Gold hits 16-month high after Fed, approaches $730
Dollar slides to 15-year low after hefty Fed cut

By Andrew Hurst and Boris Groendahl

ZURICH/VIENNA (Reuters) - Banks have always lent out more than their clients have on deposit but just once in a while savers lose trust and demand all their money back, exposing one of the optical illusions at the heart of finance.

The run on British mortgage lender Northern Rock (NRK.L: Quote, Profile, Research), although exceptionally rare in Europe, is a stark reminder that practically no bank has enough cash to pay back its depositors if they all turn up at the same time.

An unequivocal commitment from authorities to guarantee everybody's savings appears to be the only way to stop a run in its tracks and save a bank from going under, say analysts.

Just such a promise from the British government on Monday may finally have turned the tide in favor of lender Northern Rock after a full-scale run started on Friday.
http://www.reuters.com/article/reutersEdge/idUSL186787120070918

[lance]

Wednesday 19th September, 2007

Foreclosures soar in U.S mortgage belt
Big News Network.com Tuesday 18th September, 2007

Home foreclosures in the United States have surged 36 percent in August from the prior month and more than doubled from a year ago.

RealtyTrac says default notices, auction sale notices and bank repossessions have jumped the highest in a single month since it began issuing its monthly report in January 2005.

The states of Nevada, California and Florida are the worst affected.

Banks repossessed 42,789 homes in August, compared with 26,842 in July.
http://www.bignewsnetwork.com/index.php

[REITman]

I'm glad I have my money in Iraqi banks where its safe!:bear:


:rofl: That was good!

[thegujju]

Northern Rock (the British bank in question deserve everything they get).

This is further further proof, as if it were needed, that the pseudo-science of the 'markets' is actually based on nothing more tangible than human emotion.

The source of the whole problem was that some people thought they could make money if debts were referred to and traded as if they were assets, instead of of what they really are - calculated liabilities. Then, one day, reality took hold, and the illusion popped. Sadly, many people will suffer because they were taken in by the 'experts'