Agree that if they were going to do it it would be Option expiry but Wall St/Hedgies have been given the time/suckers they needed to unwind their longs and go short. Wall St has worked out it can make more money by going short so they now want the market to go down. If you are short you want the market to break down sharply, not consolidate, as a sharp break will start the mutual fund redemptions that will power your shorts. For myself, I will not be too surprised if there is no rate cut or just a 25BP cut as this will also help Wall St's shorts. Bernanke is a slimy snake who gives what most reasonable people would regard as clear guidance and then does the opposite. REPEAT Bernanke is a NASTY SNAKE.
very true Anek, whats going on now is not a liquity issue so lowering won't help, the problem is a solvency issue.
Cuts won't help, but the market is way oversold. We are going up from here at least in the short term.
there can't be a "surprise" rate cut when everyone expects one. ff futures imply a >95% chance of either 75 or 50 basis point cut. and what exactly did the last couple of rate cuts do to the stock market?
is this post for real?...crazy 'surprise' rate cut talk...hello...FED mtg almost here...give me one reason the FED would 'surprise' us with a rate cut now and can't wait about 10 days...hello...lets get real all!!!...give me one real reason...
They cut discount rate in August and then cut Fed funds a couple of weeks later if my memory serves me. Interesting that they did nothing for 2 weeks when there was a run on CFC and apparently financial market counterparty payments were breaking down but still out until option expiry. Why not Thursday, why not follwing Monday not coincidence IMHO. Bent fed.
honestly amazed that people on ET even remotely think there will be a 'surprise' cut...not a chance...not 1%...
...we are 13 days away from the next FED day...would a 'surprise' cut make that big a difference with the FED mtg only 13 days away?...think not...no cut is coming...sorry