Either a BLACK TUESDAY, or Emergency Cut

<i>"Seems to me, if Gentle Ben is going to cut before the Jan meeting, he will do so tomorrow am before the 9:30 open."</i>

If they cut unannounced, it will be deep in the trough. I would imagine there are scenarios in place right now for such action. If the markets manage to bounce on their own (which is possible) then Fed will sit idle and wipe the cold sweat from their collective brow.

If instead the markets auger straight into the ground, they will step in at some predetermined point. Prez Bush attended the latest PPT meeting for the first time in admitted history? Does that tell us something about Fed fixation on stock markets?

No one should expect any rate cuts to right the market. Rate cuts are impotent now. But everyone should beware of the Fed ready to act at some point in the very near future, futile effort or otherwise.
 
Why is everyone freaking out about the dow futures being down 500 pts? The shorts are all gloating.... If I were the shorts, I wouldn't be so excited... I have been waiting for a big down day like this for a while, i'm hoping we see 1000 pts down on tuesday... bigger the better.. it will be the shorts shooting there load. To actually have a bottom put in this market we need this kind of huge unrelenting "crash".... I'm actually excited this sort of move may be the signal of a bottom on the horizon... The more panic and fear the better.. so everyone SELL tuesday ;)

PS... I am NOT calling a bottom. I'm simply stating that for any meaningful bottom to be put in,we MUST have a huge panic driven down day... this looks like it will be one of those types of days which MAY end up signaling a bottom, not that it necessarily WILL
 
Quote from atticus:

Cut is a bandaid for a bullet wound. It's not public, but ATT will be cutting head count by 10%. (sic) earnings are strong but built on mud. Why is it every egghead's assumption that growth tracks inversely-proportional to rates?

Throwing money at the problem with do nothing.
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The Bush plan from last week and the reaction proved this. The basis of our consumer economy is so unsound, a rate cut might save the decline for a week.
 
Quote from Arnie:

Seems to me, if Gentle Ben is going to cut before the Jan meeting, he will do so tomorrow am before the 9:30 open.

Personally, I think the guy is a clueless academician. He's the Fed's version of Jimmy Carter
:D
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He's an expert on the Great Depression.

Maybe he wants to study one up close and get rich writing books about it.
 
99atlantic asked:
What's the Fed going to do when it's DOW 10k and rates are 1% .... offer negative interest rates, lol!
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That two does not happen at the same time. People will lend US dollars at 1% interest rate and buy equities and physical assets. It's virtually free money when you are paying only 1% interest rate and watch the value of US dollar plummet.

Remember Helicopter Ben still have a lot of FRNs to drop from his helicopters. Better do it above my big backyard :-)
 
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