Hallelujah: Coordinated Global Rate Cut?

Posted at Commercial Mortgage Hotline by Michael Haltman Oct. 8, 2008 

Hallelujah: Coordinated Global Rate Cut?
 
Coordinated Rate Cut Move By The Central Bankers

As I said as my closing line to my blog yesterday, if only we could get the EU to cooperate with the global financial crisis that we are going through. This morning as I write this (7:00 AM EST), the U.S., Canada, Britain and the EU cut rates 50 bp in a coordinated move to loosen the flow of credit around the world.

This came on the heels of close to double digit drops in the stock markets in Asia (10%+ in some and close to 20% in some of the Russian stocks), and close to double digit drops in the European markets. The announcement sparked an immediate rally in Europe with those markets moving into positive territory, and in US stock market futures that had been down large and are now up large.

The TED Spread is currently at 3.75% which is still not a very good number, and the VIX which closed at 53.68 should drop a decent amount, at least at the open.

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