Quote from day7793:
Why are you such a pessimist? Recession is not coming and the fear of recession itself is the seed that won't bring the market down.
One rate cut due any day in January and the shorts will be blown to peices.
You really have no clue bud. The game is OVER!!!
The question is not if the us is going into a recession. The us is already in a recession. It is going to get so much worse. The markets will get a bounce here and there but at anytime the DOW can go into a freefall.
So whats the question??? The real question is do we go into a depression??? Does it actually get worse then 1929???
The fed has one weapon that could be effective here in my opinion. What they really should be doing is not lowering rates at all!!! They should actually be raising them to fight inflation. However at this critical time they could not do that either without installing panic. The best thing they could do is just leave rates where they are. Yes the Dow would shed 500-1000 more points very quickly.
The point being the only way to save the us is to have a good cleansing. They need to install pain now to keep things from going into a major depression.
I highly highly doubt that will happen. Instead Bush and Bernake and friends will try to put more bandaids on things trying to keep the markets up while Bush is in power. That is the worst thing they can do, but they will try like usual I think.
Your comment about them lowering rates and crushing the shorts????
Bernake was chirping about lowering rates a few days ago. Immediately the market spiked up. Just a short while later the markets started to sell off. Basically the markets shoved it up Bernakes cornhole.
Rate cuts are useless now.
If they really care about Americans, then keep rates the same and start to slowly raise rates once the panic stops.
It wont happen. Only two words describes everything.
GAME OVER