Wow! I really didn’t think they’d do it! Maybe we can avoid the carnage seen over the rest of the world!
Unfortunately the markets are not impressed. Futures have barely reacted as I am writing this. I think many know that a mere interest rate cut will not cure the severity of the structural problems behind all this.
There will also be forced selling (margin) of unprecedented magnitude this morning. My broker has just removed margin privileges from all accounts for today. Others will probably do the same.
Remember last time the Fed was easing? There was a fireworks of rising stocks immediately.
Let’s see how this pans out…
Wern
Amazing… they just don’t care. I wonder what this means, certainly it shows sentiment, “ignore all good news”…
Good job, Ben Bernanke! ! I believe it takes GUTS to make these relatively large emergency cuts, and especially takes GUTS to make these decisions outside boardrooms, outside the committee of directors. I believe this Fed chief is far more dynamic than his predecessor. I’m already beginning to like him. Some blame him for surrendering to “Wall Street’s demands, regardless of consequences”, but, as I see it, Ben Bernanke is just doing his job, and doing it well, doing what is best for us. He’s just serving investors, you and me.
It is interesting they cut by that much, just a week away from the official meeting.
It seems to imply more is to come within the next week…
He did say in his speech a few days ago “the fed is ready to take substantive action”
Market is rallying, I feel it is a bounce off highly oversold conditions…
I am not sure if Ben’s “flying helicopters” are an answer to the massive deficits and serious underlying problems in the economy.
Just watch the dollar.