This is exactly why you have to hedge your trades if you are holding any position of significance (EEM,EWZ, NQ, XLF, and C puts hedged with GOOG, BIDU, GFI, XOM, SMH, SIGM calls). Nevertheless I am going to be a lot worse off today than I was yesterday unlesss we see some $30+ moves in Bidu and Goog. Fed makes me sick, how much are they lending to the Carlye group, bet this saves their ass.
That's one way to look at it. I think this is very positive for the markets. The Fed is finally coming to terms with the fact that this has little to do with rates. Besides, how low can they go when you are already near historic lows? It shows they are more than a one trick pony.
no chance of a red close today, remember when 75bps cut came, the market was very sick, rallied but kept selling off this market is much healthier
With the market oversold coming into today, I doubt that would happen, even if it tried to, PPT will save it on a symbolic day like this with Fed action.
Buffett was willing to take the monoline MUNI bond insurance which was never in trouble. The Fed is taking "AAA" mortgage backed that may or may not be AAA. Buffett did not want the bond insurance on these. Not really the same. The Fed move reeks of desperation.
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Excellent Commentary ............................................................................ Well let's see.... The Fed can print money, create debt, tax, and control interest rates.... So the Fed throws a less than $200 billion tax credit bone to Walmart via China.... And today ....is throwing out a $200 billion bone to the credit facilities for nongovernment banks.... So....at the end of the day....what does this really contribute to the pending required structural changes.... And do note....it was only after oil made a 4x increase....that the Bush Admin suggests movement towards nonoil energy....and of course forgot to mention the removal of tax credits for non oil energy in the new energy bill..... And do not forget that it is the very head of the treasury that actually garnered personally millions from the promotion of the instruments that are causing the problems.....who is promoting the solutions.... Sadly...this is almost comical....This is truly third world stuff....
The market does not seem to be reacting too much to this event C is only up about a dollar. Perhaps I misunderstand what this event would imply but that does not seem like alot given the circumstances