no need to worry. 45 minutes b4 the close the buyers will step in as they have always done on fed meetings and drive stocks much higher into the close.
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Dow to end the day (12/16) up several hundred
- Thread starter MrDODGE
- Start date
no need to worry. 45 minutes b4 the close the buyers will step in as they have always done on fed meetings and drive stocks much higher into the close.
Quote from papasucre:
Before you get too excited about the cut NOW is the time to put on the short. THERE ARE NO BULLETS LEFT!!!! They have funky measures left, but nodbody knows what the hell they are doing at the fed - the sell will come. They are throwing everything they can at the markets - fine. But this will scare the market not rally it. Get Shorty.
Agree, the bulls have been extremely happy with these rate cuts however after a year of cutting rates it has done nothing and will continue to do nothing, they can lower them to 0% and it will prove nothing but a waste of time. The credit bubble that popped was formed by historical low interest rates and by the looks of it we are creating yet the same scenerio yet again.
Quote from S2007S:
Agree, the bulls have been extremely happy with these rate cuts however after a year of cutting rates it has done nothing and will continue to do nothing, they can lower them to 0% and it will prove nothing but a waste of time. The credit bubble that popped was formed by historical low interest rates and by the looks of it we are creating yet the same scenerio yet again.
You're clueless. It takes up to 18 months for rate cuts to have an affect. There was also no credit bubble. There was a tiny real estate bubble and a subprime bubble but the vast majoirty of credit holders such as consumers with credit cards, small businsses, aren't defaulting. Houshold and consumer debt continues to rise, but it isn't a bubble as long as wages, personal income, and productivity continue to rise.
Quote from stock_trad3r:
You're clueless. It takes up to 18 months for rate cuts to have an affect. There was also no credit bubble. There was a tiny real estate bubble and a subprime bubble but the vast majoirty of credit holders such as consumers with credit cards, small businsses, aren't defaulting. Houshold and consumer debt continues to rise, but it isn't a bubble as long as wages, personal income, and productivity continue to rise.
Ever heard of the domino effect?
<img src=http://www.ajc.com/shared-blogs/ajc/luckovich/luckovich0812.jpg>
This market is unstoppable. Large cap tech and EWZ FXI leading the rally.
Quote from papasucre:
Before you get too excited about the cut NOW is the time to put on the short. THERE ARE NO BULLETS LEFT!!!! They have funky measures left, but nodbody knows what the hell they are doing at the fed - the sell will come. They are throwing everything they can at the markets - fine. But this will scare the market not rally it. Get Shorty.
A bullet only works once and has no more effect after it's fired. Interest rate cuts on the other hand *maintain* their effect for the entire time they are kept low. It is more like a machine gun with infinite ammunition, than a non-auto with 6 bullets.
Interest rates that are 0% now, and 0% in 6 months, are more stimulative than rates that are 1% now, and 0% in 6 months. "Running out of bullets" actually creates a more powerful stimulus than "saving" them.
In other words, the gun/ammo analogy is possibly the most misleading analogy in the history of finance. Any commentator or central banker who uses it is mistaken.