At this point, it looks more like the only hope the bears have left is that the market tanks 'cause the Fed don't cut. I believe there's a technical term for this: grasping at straws. This is not a bear market, and it certainly isn't THE bear market, which is coming in a few years. No need to hurry the Grim Reaper, he'll be by in his own due time. Meantime, buy the manic depressions, sell the exuberance. It might be too late for the former, but it's a bit too early for the latter, even in the short term.
LOL....you serious? this is all about the fed..liquidity injections,discount cut & anticipated fed funds cut.the fed is always there to bail out the greedy & financially undisciplined at tax payers expense.
baring an existential risk there will never be another bear marker...ever. There reason is because in the past decade the US and global economy & markets have become very finely tuned with a perfect balance of growth and inflation. In addition there are so many market players and hedging that to create a such a long standing market efficiency that constitutes a bear market would be impossible.
Which is why they raised by half a percent in May 2000, right? No Greenspan put that month, it seems. Why Volcker raised rates through the roof, regardless of the burgeoning unemployment rate? Why the 1931 Fed raised rates in the teeth of what was already a depression? Damn, do you guys even remember anything earlier than last week? Do any of you do any analysis at all as to why rates should be at a certain level? Really, y'all are getting seriously tiresome. Actually, no, I take that back. Gotta make my money off someone. Might as well be off a pack of boobs who seriously believe the Fed is a private corporation. If I didn't know better I'd think I wandered into Trailer Park Heaven, rather than Elite Trader. Maybe I have and don't know it.
Principal: Mr. Madison, what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul.
I have to agree with Spooz. The fed lowers the discount rate and lends the commercials more dough to go bail out the mortgage brokers and voila the hedgies that have had their butts handed to them over the past month are free and clear to lever up again. The culmination was the politicization of the matter yesterday with Dodd meeting Bernake. Aren't we supposed to be a capitalist society? And in that society where anyone has the ability to make large sums of money doesn't someone else have to take the other side other than just joe taxpayer? The thing that makes me sick is that I am still pretty young and at some point in my life the US economy is going to go down a major toilet given the amount of debt. We could take baby steps to minimize the impact for those of us that will be around to pay for it but unfortunately we don't - we just let it ride. Don't get me wrong - I was long Thursday and have no problem changing my mind depending on where the market is. But today and now the overnight futures from friday seem to suggest we are just back on track to trading as normal in early July. Seems like all the talking heads got the bailout they wanted - those of us that tried to stay objective and conservative just get screwed.
Anyone know how long they can pump money into this market to cover up all this bad news. I dont think this market is done finding a bottom yet, things this bad just dont disappear in a few weeks.
agree. With liquidity drying up the only thing they had left to do was to pump the markets with more money, without $200,000,000,000 worth of injects worldwide last week the markets would have been in complete turmoil. Seems no matter what there is always help when the markets create their own problems.
This is the problem with the mindset of the bears. This so called credit crunch isn't a big deal because there is no concrete evidence anything is wrong. Yea there are problems but they simply aren't that big. A black hole entering the solar system would be a big problem or say a nuclear war.