I was expect it to down 400 today. The Fed is stupid. Just let the market absorb the losses. Big frigging deal if the market is down. So what if the Dow didn't make new high in the past 2 weeks and now down a few hundred points from all the time. All these actions tell the big boys to take take more risks because Fed will bail them.
Thats the thing, everything is all fine when the market is going straight up, but a little dip of 10% and they all got to bitch about why this and why that. I could see if the dow was off 30-40% from its highs, but a small little 6% drop and everyone is worried. Look at cnbc and there stupid news alerts on why the market is down, F$%^ing PATHETIC.
I know I'll get flamed for this because so many people here just plain want the market to go down that they won't see that what was done was done to curb total disaster. The briefing.com report, in my humble opinion, is spot on. Odd that they say the ECB has injected 200 billion when the first 90 or so of it was only overnight. The rest is for the weekend only, just like the Fed. It was done to prevent an outright collapse of the system - similar to a run on banks, if you will. Consider a bank - just a regular small town joe schmo bank - that has poor accounting practices and, as a result, denies withdrawls for it's customers. What happens? Word soon gets out that the bank stopped giving money because of problems. Now everyone rushes to the bank, but no one gets any money. But what also happens? Everyone else rushes to all other banks as well, worried that they, too, won't get their money back. This causes other banks - perfectly healthy ones - to begin to cave as well. This is what we have. Right now, right here. Now you can argue all the "fuck em, they deserved it for playing in the CDO market" you want, but at the end of the day, no one - not even perma market bears - are served by an all out market calamity. The Fed came in to allow for calm. To give market participants a pause. To stop the run on the banks in the previous analogy. And they did it just at the right time, if you ask me. They won't be cutting, like everyone is now beginning to think. I still think they'll hold rates as is. If they did not do what they did today, they would certainly have to cut - by leaps and bounds. But by then it would be too late. So ease up a little. I know everyone here hates the Fed and wants total financial armageddon. But you just think you want it. You really don't.
Ivan's heart is in the right place but we (us) are weary of these bailout devaluations chewing away at Dollar based savings..... The Fed. created the current crap by refusing to set interest rates to reflect inflation w/ food and energy.....and provide savers with a real rate of return above inflation so dollar based cash is forced out of fixed rate instruments and into stocks and real estate to try to keep up with inflationary costs poor credits coming out of the housing bust will be given an afterlife so the banks and brokers dont get hurt...and JoeSixPack will get screwed whether he knows it or not
So; Fed first beats the crap out savers; grama's and grandpa's life saving by manipulated the inflation number and interest rate. Then; Fed punished the investors who highly leveraged in their triple-A rated bonds; cause; fed pull all the strains on the money supply. Nice works; we aren't far from third world banking. After all; this kind thing should only happened to poor south-American countries; and only their people should be suffers; and we can reward ours with a pride that fed is acting fast.
there have been three bailout episodes since 2000 1. tech bust 2. 911 3. Subprime bust (the current one) the dollar has been chopped by 30% and is likely to go lower........ and there'll be future bust bailouts to come.... we dont want any pain to be suffered by anyone....