Replies to post #22803 on SPDR S&P 500 (SPY)

[learningboutinv]

Gleno,

I don't get it... Why would the Feds cut the discount rate, money lent to the major bankers? Maybe I don't understand the entire process, but that really doesn't help the average people or poor folks on Alt-A/Subprime since it's not the federal funds rate that they are cutting.

It just gives the banks more liquidity because it allows them to borrow more money for less interest but I doubt the buck gets passed to the average person. May be I am wrong about the whole thing.

[*~1Best~*]

Hi GLENO, will see what happens.

Have a good day

~~~

Posted by: __1Best__
In reply to: None
Date:8/17/2007 6:34:02 AM
Post #of 2185

1997 & 1998

by Pabst

I remember quite a bit about both years. The picture to the left is me in the CBOT's then newly opened Dow pit on 10/27/97 . The photo appeared in Time magazine the week after the '97 crash. Greenspan was the cover and I'm on the index page, pictured between Slick Willie and Hunter S. Thompson. biggrin.gif

There was also an interview with a guy I'd never before heard of. Jim Kramer.

'97 was just a one day deal. A more volatile Feb. 27th. All off Asia. And Niederhoffer, lol. In fact another trader who'd been a subjet in the first Market Wizard's book sold into the subsequent rally, kept adding and lost millions.

'98 was more like today. The bad news about LTCM, Russia, Asia, Impeachment and Treasury spreads went on for months. It all ended with the biggest bang I'd ever seen. Around 2:30 on October 15 the Fed cut by 25bp. Dow futures rallied 500pts into the close. It wasn't until the trading days following 9/11 (almost 3 years) that the market saw those prices again!!!!