Comments on: The Strategy of Surprise: Will the Fed Cut the Rate Next Week? http://mindyourdecisions.com/blog/2007/12/04/game-theory-tuesdays-will-the-fed-cut-the-rate-next-week/ Articles on game theory and personal finance Tue, 07 Sep 2010 05:43:49 -0400 hourly 1 http://wordpress.org/?v=3.0.1 By: The game theory of music - Mind Your Decisions http://mindyourdecisions.com/blog/2007/12/04/game-theory-tuesdays-will-the-fed-cut-the-rate-next-week/comment-page-1/#comment-7174 The game theory of music - Mind Your Decisions Wed, 11 Aug 2010 09:15:26 +0000 http://mindyourdecisions.com/blog/2007/12/04/game-theory-tuesdays-will-the-fed-cut-the-rate-next-week/#comment-7174 [...] (It reminds me of the way the Federal Reserve manages interest rates. The Fed has to surprise investors and the market to be effective, but it cannot make too big a change at once or the market will overreact. A while back I highlighted the Fed playing this game of suspense.) [...] [...] (It reminds me of the way the Federal Reserve manages interest rates. The Fed has to surprise investors and the market to be effective, but it cannot make too big a change at once or the market will overreact. A while back I highlighted the Fed playing this game of suspense.) [...]

]]> By: Vijaya Prasad K.S http://mindyourdecisions.com/blog/2007/12/04/game-theory-tuesdays-will-the-fed-cut-the-rate-next-week/comment-page-1/#comment-554 Vijaya Prasad K.S Wed, 05 Dec 2007 06:45:11 +0000 http://mindyourdecisions.com/blog/2007/12/04/game-theory-tuesdays-will-the-fed-cut-the-rate-next-week/#comment-554 addicted to your Game theory on Tuesdays. nice post. addicted to your Game theory on Tuesdays.
nice post.

]]> By: RohoMech http://mindyourdecisions.com/blog/2007/12/04/game-theory-tuesdays-will-the-fed-cut-the-rate-next-week/comment-page-1/#comment-552 RohoMech Tue, 04 Dec 2007 19:44:58 +0000 http://mindyourdecisions.com/blog/2007/12/04/game-theory-tuesdays-will-the-fed-cut-the-rate-next-week/#comment-552 From your post it seems like the Fed could easily make it seem like they will cut rates, and let that become the common perception, but fail to do so as a surprise, thus rewarding the more bearish investors. Your post reminds me how little I knew about the lending market, especially how it recently crashed since people defaulted on their loans. It didn't seem like risky lending practices, I thought it had something to do with misleading borrowers about their rates (specifically that their below prime rates would change). From your post it seems like the Fed could easily make it seem like they will cut rates, and let that become the common perception, but fail to do so as a surprise, thus rewarding the more bearish investors.

Your post reminds me how little I knew about the lending market, especially how it recently crashed since people defaulted on their loans. It didn’t seem like risky lending practices, I thought it had something to do with misleading borrowers about their rates (specifically that their below prime rates would change).

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