I am wierd. And that's exactly what the market is, a credit junkie. Going through withdrawls is oddly similar to the fluctuations as of late. But just like a substance addict, the market needs to hit rock bottom in order to recover it's health. The question we're all trying to debate (over and over and over and...) is whether that bottom has been reached.
i think it's just had it's first cringe of DTs the question is whether it goes off on another bender (rally) or starts drying out
If you study the psychology of the addict, you'll see that unless they hit rock bottom (alcohol, crack, whatever) they never recover and just perpetuate the problem. So essentially the market needs to be half-naked, lying in an alley in a puddle of it's own vomit, with rats nibbling at it's testicles - before it realizes it cannot go any lower. Are we there? Tune in tomorrow!
well, i think the fed's as much a pusher as a healer, and only promotes 'healing' when they're out of junk their actions from 1999-current are nothing short of despicable
Bah, baloney...yesterday was short covering... People taking some profits.. Let the news get out of the way, and then buy/sell/jerkoff...whatever..
I agree, why they just won't let the free market weed things out is just plain manipulation. Why can't we just have a good cleansing, let the looser loose.
"Rate" cut? "Rate" increase? "Rate" unchanged? Rates are STILL at a generational low. Banks don't borrow Fed Funds. Either from correpsondents or repo's. Latter, priced at what the market bears. Federal Reserve only influences the short end of the yield curve. Nuthin' but moral suasion. Might be good for a head fake.
http://uk.youtube.com/watch?v=I1eSlYtXiro&mode=related&search On a more serious note here's the picture on implied probabilities http://clevelandfed.org/research/policy/fedfunds/index.cfm