Thoughts? As of now I would say less than 5 %. Will they cut 100 bp? They have to "shock" the market. maybe a global bailout like ECB+Fed coordinated? As a side note, has anyone seen a 500 gap in dow futures? I cant recall it.
Fed is not going to do anything. Lowering rates won't help this situation. Market just needs to crash 20-30% and then it will be ok in about 5 years. John
Here is another post claiming the federal reserve has to step in and cut by 1%, there is no way they will do that, you want to see the dollar drop even further and send inflation even higher......the federal reserve is not set up to save the stock market, they have cut how many times in the last 6 months and since that point the stock market is still off about 15% from its all time high. Rate cuts arent going to do anything but create more problems.
just because you don't want them to do anything doesn't mean they will stay on the sidelines. obviously they are going to act. i have no clue how you gather that they won't act.
I'm not an advocate of a loose FED, however I am referring to just trading. I find it hard to believe that the FED/government would allow the market to open down 500 pts and do nothing. We've seen the fed "active" on a far less weak tape than this one. What happened to price stability?
Because it won't help anthing and they run the risk of exposing themselves as a paper tiger. What's wrong with a market crash anyway? John
are you kidding? ALLOW?????? ALLOW?????? now why is it ok for the stock market to gain 100% in 5 years and emerging markets 500%++++ but not okay for the stock market to have a decline of 10-20%.