Fed cuts interest rates by 75 basis points

Source: MarketWatch




Read more: http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B7C98B5FC%2DE264%2D4F75%2D8C42%2D0256DEB52242%7D&siteid=mktw

---

Massive losses in the futures moving quickly back up. From -530 to -206 in a matter of minutes!

Will it help or will it cause more fear?

It's ALL OVER!

Someone on CNBC said they should have let the selloff happen and then come in later today w/the rate cut and then test the lows. But, the futures shirking off the rate cut like this does not bode well.

I think these two items cancel each other out. I also happen to think the Fed is contributing to the sense of panic right now by making such a dramatic, unprecedented move. I know they want to get out ahead of the markets and reassure everyone that they are paying attention, but they've lost so much credibility over the past few years. All we need now is for Bush to get in front of the cameras and tell us how great everything is, then we'll see a real correction.

Should be interesting.

and that's supposed to calm the markets?

IF anyone really wanted to stop the slide into the Greater Depression, they would slap a massive, confiscatory tax on the top 5 % of the nation. That would stop panic dead.

and when the fed panics --- everyone panics...

just wait for the "must be worse than we thought if the feds dropped the rate by so much, and in between meetings too..."

It seems like if the federal funds rate is reduced, then short term interest rates should follow suit; making money cheaper, and sparking investment. BUT, what about the money that the federal government needs to borrow, and is currently borrowing largely from overseas? If those interest rates also fall, doesn't that discourage overseas investors?

investment in India, China, Mexico....everywhere but where it's needed, here at home.

And don't worry about the government needing money from investments. They'll just print more of it. Voila, problem solved! :eyes:

This economy is knee deep in shit and sinking fast. And the best Bush can do is tell everyone to "go shopping". :banghead:

And the Eurporean markets are still falling back.

Should be an interesting day in the states....

no matter what the Fed has done.

the exchanges are going up and down, and then only down. we're losing ground by the minute, within an hour of the Fed announcement. It's downhill from here (for today) and the Dow still has to open...

this could backfire on them.

Now they can have their Short Covering rally, and put the lambs back to bed, and everyone can feel so good about the Markets latest miracle turnaround. (If of course, this plays out like the script has done in the past)

Then, at the SOTU, Bush can tell everyone how robust the economy is and how we weathered the storm.

The PPT and Helo Ben saved us again.

For another month, year, two years, four years.

This charade will keep on playing out over and over again.

And it will stave off the inevitable.

Until it doesn't.

Let them cut it to zero again, and let's see if we can blow a few more bubbles.

We now return you to Mystery Economic Science Theater, already in progress.

Free Market. What a laugh.

they've gone to that well far too many times. They aren't fooling anyone anymore. The avalanche of horrendous earnings reports lately can't be hidden by another smoke and mirror interest cut. This shit is getting REAL and people are just waking up to that fact. The "Bush economic miracle" has finally come home to roost.

I wonder how this will affect Bush's "legacy". That's all he seems concerned about lately. He was hoping this collapse would hold off until he was out of office, but you can't hold back an avalanche of shit forever. The smoke and mirrors aren't working anymore.

I watched the action today, and although they did manage to bandaid things for a smaller loss, and not a crash, this didn't end well at all.

Then Apple warns after the bell, and ALSO we have these three stories that caught my eye today:

Bank of America, Wachovia Profits Plunge

Bank of America and Wachovia Profits Plunge, With Both Banks Citing the Lending Crisis

http://biz.yahoo.com/ap/080122/earns_banks.html (Bet that Countrywide Deal is going to work out smashingly for them)

Ambac Posts $3.26 Billion Quarterly Loss

Ambac Reports 4th-Quarter Loss of $3.26 Billion As Credit Markets Suffer

http://biz.yahoo.com/ap/080122/earns_ambac.html

DuPont 4Q Profit Drops 37 Percent

DuPont 4Q Profit Falls, As Year-Ago Results Had 1-Time Boost

http://biz.yahoo.com/ap/080122/earns_dupont.html

And this is just the tip of the Iceberg.

The rot is finally coming home to roost, and the Powers That be may not be able to manipulate and Paper Over everything this time.

This whole economy has been a Grand Illusion for many years now, built on bubbles, bread and circuses, and fake wars.

And now the rest of us get to pay for it.

I just hope we all have enough money left for matches to light the torches, and for pitchforks from the hardware store.

Assuming of course, the hardware stores survive as well.

This is a clear indication that they are freaking out over Bush's failed Presidency and its consequences.

I mean, if the banks go, so goes the paycheck.

It is a panic move. Capitalism is in its greatest crisis since the Great Depression.

Much worse.

Oh, we'll just reduce the rate of inflation by adjusting the measures.

A "supersize" meal at a fast food place has the same number of calories as an entire basket of fresh fruits, vegetables, nuts, and whole grains. Healthcare has always been a luxury, and people living in poverty have never had secure shelter. Decreasing world oil production will only encourage alternative energy development, while climate change opens up many opportunities for innovative products, services, and property development.

No problem. The economy is strong.

The chimp wants some kind of positive legacy.....rightttttt!

The party's over folks, I think the Fed finally smells the fear. :evilgrin: :party: