GOIH Capital Markets: FOMC October Meeting

The FOMC meets again on Oct. 31, 2007 to assess the markets and determine if another rate cut is needed by the economy. If the Fed does cut rates as the market is pricing in with a 72% chance of a rate cut, then the dollar is going to fall further and oil and gold will rise further. With all of the favored financial sector firm reporting misses this week, i.e., BAC, C, JPM, MER, the same as in August when the credit crunch hit home, the Fed might move before the FOMC meeting as it did last time with a cut in the discount rate.

Something big is going to happen in the remainder of 2007. A major financial crisis is in the brewing and no one seems to know how to fix the mess.