Either a BLACK TUESDAY, or Emergency Cut

Hey Captain Obvious! Do you have access to YM futures? 11,586 last trade.

 

While the market is likely to open sharply lower. Many traders are going to be looking at the long side with the expectation that the fear is over-done.

 

You can't go debit in a cash-account. Too many public LTCMs [or ICBMs, take your pick].

 

Exactly. Everything suggested has been tried for naught-in Japan. They've been leading everyone lower for months with the lowest rates in world.

I don't think a lot guy's respect the numbers. The mortgage market is bigger than the Treasury market. Jeeeez throw in stocks, corporate/muni debt issuance, (broke local governments are next) consumer and commercial credit and you're looking at asset devaluation in the tens of trillions. Any measure that would actually cure this wound would be so Argentinian that Gold will trade $2000 an ounce.

 

So many threads proposing a rate cut.

So all the liquidity crises will disappear with 1% rate reduction?

Everyone who is being trapped on a long side over leveraged is pleading for a rate cut.

All it is going to do is make it worse. Every bull will try to get out on any bounce now. Is that good for the market?

 

Seems to me, if Gentle Ben is going to cut before the Jan meeting, he will do so tomorrow am before the 9:30 open.

Personally, I think the guy is a clueless academician. He's the Fed's version of Jimmy Carter

 

Structurally very similar, although worse in the USA. A nation of savers vs. a nation of consumers rolling over their car financing. Oh yeah, it looks peachy.

 

Fed meeting is just around the corner, why would the Fed do an emergency cut now?

 

Oh I agree...much worse. At least they have a balance of payments keeping them afloat. Hail Toyota.

 

<p>I think that statement sums up the present not the future. I do not think a rate cut will do much to affect the next leg down what ever distance that is. He has lost control and foreign markets have shown that. I understand that foreign markets are indicating something much worse than a 200 point down day, but markets are contrary things and do not often follow the expected. If they gap down on the open far enough, there is always the chance capitulation can be reached sometime in the morning and they can reverse off the lows in the afternoon. An emergency rate cut at this point will only allow smart money to sell off their positions into some strength instead of holding on until capitulation. The bottom is the bottom and the fed can only delay it a little.