Poole said a rate cut would happen only in the case of "calamity"... A rate cut just happened. Time to panic.
Cutting the discount rate is a tiny, tiny gesture. It means nothing. Nobody <i>ever</i> borrows at the discount window. Wall Street completely misread this. Cutting the discount window is the Fed's way of saying, "We're going to take the tiniest possible utterly symbolic and meaningless gesture to allay concerns without actually having any net economic effect whatsoever." Martin
Exactly. Big Ben just wanted to put the shorts on notice: "I CAN BURN YOU". And wow, it doesn't get any better than that move....I mean put buyers were going into today feeling so flush, now they've lost a good portion of their positions.
Your right it's not their job, but they are political appointments and they are more than likely feeling the heat. When you step back, it seems so stupid, the dow ran up 2000 points from March to July, now its down 1000 points big fucking deal. This country is so dammm spoiled it makes me sick.
What????????????? The bonds have gotten it exactly right. Perhaps a little slow, but certainly not wrong. No one gets markets that move 300 points down then 300 points up on an almost daily basis right all the time. nitro
That would depend when one went short. After a 1000 point drop I'm sure alot of shorts had taken some profits. Until the market can climb back above the 20 and 50 day moving averages the shorts have field advantage.
The bond market has been predicting an ease for over a year, hence the inverted yield curve. Just a few months ago things came back in line the ten year yield was at par with the fed funds rate. Now once again the bond market is trying to predict fed policy. Things are just so out of whack these days, what use to work no longer does.