Fed just cut discount rate .25% Gold 1020 Silver $21

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I wonder if the Feds cut the discount rate duo to the collapse of Baer Sterns. JP Morgan is buying them out at 2 bucks a share.

Lou

 

I'm sure that is the reason. I wonder if they will cut the rate more when they meet on Tuesday.

 

I think that is exactly the reason.

However, I believe the policy is wrong. Just to save a couple of bank.

Dollar falling: Euro is now $1.59
Gold $1020
Silver $21

I would like the dollar to stop falling (and the stock market).

 

Anyone thinking about ordering from the mint might want to take a hard look at it tonight. Of course if the mint does not want to honor your order, it seems they do not have to. May order something just for the heck of it. lol

 

This was the discount rate that the Fed lowered from 3.5% to 3.25%, the rate that the Fed charges banks. Unfortunately, they will probably lower the Fed Funds rate on Tuesday (I WISH THEY WOULDN'T) also. The government is heating up inflation even more, and the price for precious metals, all commodities, food, energy, etc. will just continue to rise. When will our government just stay out, and let the markets correct themselves?

 

Bear Sterns is the 5th largest investment bank in the US. If it fails it can have global implications that would affect the dollar further.

Lou

 

Amen, brother. Last chance to order the Madison Spouse Proof coins, among others, before the mint pulls them off either for good or to re-price them.

 

Yes my bad, read it too quickly. How much do people think they will lower it? .75%? 1% with the bad news?

 

My guess

.75% or 1.00%

 

Bear Sterns failed.

The Fed was given these two choices.

1) bankrupt - sold in pieces to highest bidder. Fed did not allow this to happen
2) Sold and merged into JP Morgan Investment Bank (Happened at $2 a share, BSC was over $50 on Monday)

Either way Bears Stern will not exist on Monday. Earning announcement on Monday has been cancelled.

 

Basically, the Fed just bought Bear Sterns and gave it to JP Morgan. The Fed "has agreed to fund up to $30 billion of Bear Stearns' less liquid assets".

 

This administrations' policies has ruined our economy to the point that some countries want to ONLY trade in EUROS, not dollars. Some businesses in the eastern part of this country are asking for EUROs not dollars. If the world economy turns to EUROs then the US dollar will worth the same as the paper money from a third world country.

Is it time to convert our private assets into gold silver or EUROs?

 

Gold is now over $1030
Silver $21.18

 

Where did you get this information? JP Morgan Chase bought Bear Stearns via a stock swap - 0.05473 shares of JP Morgan Chase stock for each share of Bear Stearns (or 18.2715 shares of Bear Stearns Chase for one share of JP Morgan). With JP Morgan Chase last trading at $36.54 that makes the sale price for Bear Stearns $2.00 per share. If JP Morgan Chase's stock price falls the stockholders will get even less.

The big losers may be Bear Stearns employees who own 1/3 of the company's outstanding shares.

 

Did you read the rest of my post?

That funding is worth a lot more than JP Morgan is paying for Bear Stearns.

 

Gold under $1000 now. Silver and platinum down too. But for how long?

 

Dolley Madison Spouse Gold Proof coins no longer available from the mint.

 

I am just wondering why every time gold and silver tick up some one is quick to point it out but no one is talking about silver at 19.81 or gold at 994 right now. Maybe it is a good time to buy or the run is over and we have peaked. I'm really just think out loud though. Any other opinions?

 

Gold will not fall to $500 an ounce today. It will probably head up, as the Fed does not care about the dollar or inflation.