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Discussion Starter #1
Has anyone heard from thier sale person or anyone else regarding the 10/25 Port Elises? This is as much info as I have on my Elise:

9/21 - Left Hethel;
10/25 - Arrived at Port;
11/5 - Still in processing.

I've been able to secure a loan via my credit union for 4.7%. It's good for thirty days. However, I'm just concerned because I've heard the Feds are planing on increasing the prime rate tomorrow.

Scottsdale Lotus and I are pretty confident it will be here before then, but I hear Murry's law is a universal truth. Has anyone else heard of the status with cars at port or in processing?

Fed raises rates another quarter-point
Policy-makers hike benchmark for 4th time in 5 months

By Martin Wolk
Chief economics correspondent
MSNBC
Updated: 3:30 p.m. ET Nov. 10, 2004


The Federal Reserve raised short-term interest rates a quarter-point for the fourth time in five months Wednesday, extending its campaign to keep inflation in check after a report showing impressive job growth over the past three months.

The decision by Fed Chairman Alan Greenspan and other central bank policy-makers, which was widely expected, brings the overnight federal funds rate to 2 percent, up from 1 percent in June when the Fed began boosting the benchmark from its lowest level in 46 years.

"Output appears to be growing at a moderate pace despite the rise in energy prices, and labor market conditions have improved," the Fed said in a statement explaining the decision. "Inflation and longer-term inflation expectations remain well contained."

The central bank is slowly but steadily raising borrowing costs for consumers and businesses after a period of unusually low rates. The latest move brings the federal funds rate above the core rate of inflation for the first time since the terrorist attacks of Sept. 11, 2001, said Michael Wallace, global market strategist for Action Economics. The 9/11 attacks triggered a series of emergency rate cuts from a Fed already in the midst of an aggressive effort to boost the flagging economy.

In June of this year, the Fed began removing the accommodation at what it described at a measured pace, even though job growth was far below what was typical for an economy that was well into the recovery phase. A surge in oil prices contributed to what Greenspan called a "soft patch" in the economy, but Fed policy-makers continued raising rates at every scheduled meeting.

On Friday, the Labor Department reported that U.S. employers added 337,000 jobs in October, the best performance in seven months. Including an upward revision to previous figures, the report indicated the economy has added an average of 225,000 jobs a month over the past three months, substantially more than needed to absorb the number of new workers entering the labor force.


The report made this week's rate hike a certainty in the minds of financial market participants. Most analysts expect to raise the benchmark rate by another quarter-point Dec. 14, when Fed policy-makers hold their final scheduled meeting of the year.

But analysts and economists are far from agreement on when the Fed is likely to step to the sidelines or at least pause in its rate-hike campaign.

Some speculate that Greenspan would like to finish hiking rates soon to set the Fed on a steady path ahead of his scheduled retirement in early 2006.

Full text of Fed statement
The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 2 percent.

The Committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity. Output appears to be growing at a moderate pace despite the rise in energy prices, and labor market conditions have improved. Inflation and longer-term inflation expectations remain well contained.

The Committee perceives the upside and downside risks to the attainment of both sustainable growth and price stability for the next few quarters to be roughly equal. With underlying inflation expected to be relatively low, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured. Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Ben S. Bernanke; Susan S. Bies; Roger W. Ferguson, Jr.; Edward M. Gramlich; Thomas M. Hoenig; Donald L. Kohn; Cathy E. Minehan; Mark W. Olson; Sandra Pianalto; and William Poole.

In a related action, the Board of Governors unanimously approved a 25 basis point increase in the discount rate to 3 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, and Kansas City.

http://www.msnbc.msn.com/id/6452837/
 

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Quarter point increase isn't going to affect your overall pricing much, not worth losing sleep over. 10 year treasuries which your loan is likely benchmarked to had already priced in the increase a month ago.
 

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the fed funds rate and the prime rate are totally different animals. The Fed has no direct control over the Prime Rate. If your quote is good for 30 days it is good for 30 days. Don't worry. Even after that 30 days you will most likely be able to find the exact same quote, if not slightly different for better or worse.

EDIT: The differences between various rates and their effects on one another are somewhat complicated but if you're interested i'll post a bit more when i get some time. Also it's Murphy's law, not Murry.

-Steve
 

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As you probably know, ships arriving at the Port of Long Beach are experiencing delays in unloading due to a shortage of longshoremen. Ships were waiting 2 or 2 1/2 weeks after "arrival" to get to a berth and unload; today that wait is down to about a week. Then you have to factor in the time for transport to the distribution center and then to the dealer.

So, if your ship arrived at the Port on 10/25, it may not have been unloaded for a couple more weeks.
 

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Discussion Starter #5
offroadr35 said:
the fed funds rate and the prime rate are totally different animals. The Fed has no direct control over the Prime Rate. If your quote is good for 30 days it is good for 30 days. Don't worry. Even after that 30 days you will most likely be able to find the exact same quote, if not slightly different for better or worse.

EDIT: The differences between various rates and their effects on one another are somewhat complicated but if you're interested i'll post a bit more when i get some time. Also it's Murphy's law, not Murry.

-Steve
Thanks for the clarification on prime v. funds rate. Also, Murry is the less extreme sibling of Murphy. ;)
 
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