enough of the HYPE...where does the SP 500 and DOW go, tomorrow, Tuesday 1/22???...do we see more sell off or HUGE bounce back...and YES...no 'surprise' fed cut coming...Bank of America earnings and these 2 econ announcements tomorrow 1/22/08 could be huge... Bank of Canada Announcement 9:00 ET State Street Investor Confidence Index 10:00 ET
On Friday, I hear Ben talk about aggressive measures are required now. On Friday, I thought 75 bp, now I'm thinking he will come out with an emergency announcement....and yes, at least 50 now and 50 next week...but my bet is 75 now. Ben did do his phD on the crash of 29 and believes that it was caused by not lowering rates sufficiently. He got kicked in the ass last time on 25bp. The markets are expecting a bounce here, if not this week, then next with the official announcement. I say we are close to a bottom, could drop another 500 pts on the DJ, but it is beginning to smell like a bottom. I think the biggest fear is of a panic. It doesn't matter if the markets enter a bear market. Well, whatever, he will be giving us cuts and it seems likely we are close to an immediate bottom. IMHO.