Has the Fed Made a Mistake?

Yes, I think they have blundered. .25 rate cut was ok, but this? Now you know the works - Dollar is down, Crude and Gold is up, stocks are up, Sub prime a skeleton in the cupboard, Fed discount window wide open ...Jim Cramer is dancing like a two year old ... Grrr...

Vote please!

ss

Bad, bad signal. More than confirms that US has started going into recession. Consumer spending is slowing down.

But we won't be affected. India's growth story is due to domestic consumption. Exports to US count for only 2% of our GDP.

dear

our export oriented business will get affected.... slowly...
especially IT Industry..... may see some kinda problem
in Job industry ..... freshers in trouble........

have a nice day
JB

fed has done the right thing...afterall theyve been tightening for the last 4 years.

The immediate effect of a decline in interest rate is to reduce the level of inflation in the economy, nominal money supply remaining constant. This reduction of both interest rate and inflation boosts investment demand and consumption demand, thus leading to a rise in general level of prices. The rise in prices should reduce the real money supply pushing back the interest rates up. Unless the central bank screws up intruding in this natural order of market behavior, there is nothing really to worry about. Looks to be a short term phenomenon.

Fed has done the right thing ...... the subprime problem is very big than the picture appear. Regading the dollor , if the fed cuts the intrest rate or not it does'nt matter doller is any how is affected by the asian growth. Regarding our market it is only a sentiment that will effect us . i think the fed has taken a right path and us economy now some what stopped from recession.

Thank you all who participated in the poll! Good to hear your views.

Regards all,

ss

FED does what is good for their economy they never ever care abt rest of economies or world

no fed has not done a mistake but they have given an orange colour warning signal to investors to remain cautious. fed keeps on increasing rate till it believes the bull market or in other words economical growth is on track, but as soon as the bull cycle reverses so does the bull market reverses.

Anyone thinking that india will continue with its bull run as US goes into recession is fooling himself, just like a pigeon closes its eyes when it sees a cat thinking that cat is now gone and he is safe.
Believe me if US economy slips into recession ,we wont be able to sustain for long

prabhjeetrana read the second line of my reply above! you'll understand!