Fed cuts rate by 3/4pt. 1/22

Originally posted by gottago

That sounds so reasonable and reassuring.

But the 20 Sept. Fed cut of a 1/2 pt. was characterized in the msm financial pages as 'desperate.'[/url]

3/4 pts. is what then?

Really desperate?

One event response is not really relative to the other....

back then, the 'desperate' tag
was a whole lot different than this 'almost-a-crisis' response !

thanks for the foot-in-the-door question,

Here is a very interesting 'opinion' on the fed move from Jim Cramer (Video).

Whether you like him, or hate him, isn't the point.

What's really fascinating is that he appears to be yet another voice in the MSM calling for an investigation into the Feds.

Futures looking bad again today.

money.cnn.com...

Main reasons being cited are the fact that companies are giving weak forecasts for the upcoming quarter.

reply to post by Karlhungis


Twas interesting Karl...Dow futures were only down 60-70 points bit over an hour ago, but the closer we get to open, the more it falls...150 down is looking like where its at, but if Europe can do something amazing in the next hr or so *crosses everything*

London, Frankfurt (especially) and Paris have sold off a bit over the last 30 mins or so...

Not quite sure what is happening here...Perhaps given Europe got away pretty much scot free yesterday, they took their money off the table early to mid session ?

I did say yesterday that Wednesday would be crucial for the Street, and I still think it will be...

Anything worse than -150 will indicate those holding the cards were not placated by the Fed cutting 75...

I hope it doesn't happen, I really hope Wall St finishes better than or close to par today, I truly do...

Markets world wide, at least short term depend on it...

Peace

reply to post by Rilence


Thanks for the response. The stock market really frustrates me.

Apple (APPL) posted record quarterly earnings late Tuesday but issued an outlook for revenue and earnings that both fell far short of forecasts,

They punish a company like apple for being honest and saying that the economy is down and that they will most likely sell fewer products. The market acts like they didn't expect this. These people get paid to follow this stuff and yet they are surprised when they find out that apple doesn't expect another record quarter?

They know full well that companies like apple are going to predict a downturn. Fewer people buy items like ipods and macbooks in a recession.

reply to post by Karlhungis


I know Karl, its beyond ridiculous in some cases, Apple is a great study...Much better than expected results, yet due the general market malaise, they get canned like the rest...

Apparently this is where the "smart" buyers with lots of cash step in and buy quality companies on the cheap, which most of us can't afford to do

At the moment, Europe has dropped sharply ahead of US open...London now down 3%, Frankfurt 3%, Paris 4%...Dow futures are now down 231 pts an hour before the bell...

Peace

reply to post by Rilence


The same thing happened with Intel. Record quarter, margins up 6% but stock gets destroued because they forecast a weak quarter. At the same time AMD posts another consecutive quarter with a multi hundred million dollar loss and their stock goes up..... blows my mind.

reply to post by Karlhungis


I know man, its crazy #e !!

Sorry...All you can do is laugh about it....Cos there isn't a lot average Joe can do about it without a reasonable education on the markets and a trading account...

The thing is, there are a lot of people like that here, in Australia I'm sure and moreso in the US who made the plunge even worse yesterday...

The thing is, if you have money set aside for retirement (401, Super in AU, etc)

Dont Panic !!! Unless you're retiring in < 5 yrs...If so, you may take somewhat of a hit, but lets face it, the market can rise a lot in 5 yrs

Anyone who has 401's or Super or whatever should sit pat right now...If you must, talk to an adviser...

But anyone in for the long term will likely not be adversely affected by what has happened this week...

Most of us are in for the long haul, a correction like this won't hurt most of us, unless it leads to something much larger...In that case, all society has to fear...

But there really aren't signs of that right now...

So...Those of us (me too) investing for retirement, chill out, have a BBQ and some ribs and beer on the weekend and let it sort itself out...

I do stress however, if you are worried, talk to an advisor...

Anyone else who trades, well....you know what to do

FYI Karl and everyone---37mins till US markets open---Dow futures -233, London -3.6%, Frankfurt -4.6%, Paris - 4.8%

Not sure what might happen here ??

Are there any US market guys who might be able to alert us of some positive info which might lift things ??

Peace

All this is going to do is soothe the investor class... in the long run it doesn't address the real problems facing the economy.