Stocks surge on hopes for a rate cut

Source: Associated Press

NEW YORK - Wall Street rose sharply Tuesday as investors grew more confident that the Federal Reserve will lower interest rates next week, even after its chairman gave no clues about the central bank’s intentions. The Dow Jones industrials rose 180 points.

Traders had been hoping Fed Chairman Ben Bernanke would give some indication during a speech to Germany’s Bundesbank about the Fed’s next move. Wall Street is looking for a rate cut to help bolster the U.S. economy and ease problems caused by tightening credit availability.

Instead, Bernanke talked about the need for countries around the globe to cooperate toward economic stability. He said “global imbalances” occur when countries run up trade deficits or produce big trade surpluses.

“Bernanke didn’t really say anything about interest rates, but at this point the feeling on Wall Street is that it’s mandatory,” said Steven Goldman, chief market strategist, Weeden & Co., speaking about a rate cut. “At this point, the market is pricing in not just one rate cut, but a couple, and that’s helping to stabilize stocks.”

Read more: http://www.msnbc.msn.com/id/3683270/

The US stock markets will...:nuke:

It will be the "Great Stock Market Crash of 2007".

Bernanke is in a real catch-22. He has two months to decide which poison.

The dollar is already at a new low today. Will our creditors keep holding our debt or bail at some point? Either way, it seems like the economy will be going down soon. He may save the stock market from a crash, but it will be valued in worthless dollars.

Bernanke will cut rates, IMO. THey're going to sacrifice the dollar in order to try to keep the markets afloat. Seriously...buy all the gold you can afford. This is just like the WW1 rampant inflation. Banks during the latter days of WW1 even refused to pay out gold coin becuase the inflation was so bad.

Real inflation is way to high.

It was a looong dry spell for fixed/conservative incomes. Just now getting OK. I HATE that irresponsible lenders and foolish borrowers are generating this crisis and hoping for redress from the taxpayers.

I hold the craven lenders much more responsible --- Dumbya was crowing about the "ownership society", knowing all along it was a fool's paradise and hoodwinking hopeful new honeowners.

I have no sympathy for the flippers who got caught at all.

It said, "Ben's screwed"

Interpretation.
Mr. Bernanke is trapped. If he lowers the interest rate by 0.25, it will make the dollar worthless.

If he leaves the interest rate at the current 5.25%, the stock market will crash because of the subprime credit crunch.

It's a case of "Pick Your Poison". Which will it be?:smoke:

pack his bags and leave the country. lol