People, let's forget about the markets for one second and focus on the economy. I don't consider today's cut a bailout-cut for the markets. I see it as a clear sign that the US economy is in recession and that's what central bankers do when a country goes into recession: lower rates. The real question is: we still have 3.50% left in the tank...will it be enough to get out of the economic slump?
I'd love to see a 3% red day in equities to tell the fed where to shove it.. Paulson was long equity futures, just covered and went short. He might make a $4 TRILLION in 2008! lol
I would really love to see a transcript of this emergency phone conversation! This also makes buying more difficult if we can never actually capitulate.
Interesting, the DAX popped around 300 points in 2 minutes, and has now retraced about half its move and it looks like there is more weakness to come.
lot of people complaining here. sounds like many of you were short before this announcement. also sounds like many of you were not long gold.
Similar to Sallie Mae's a few months ago "Ok, let the market know about the 75bp cut--no more questions-- let's get the @#$# outta here!!"
Has nothing to do with being long gold. I'm long gold, long AUD and short JPY. An announcement like this is designed to make me money. I, like several others here, see the forrest for the trees. We understand that actions like this are detrimental to the long term health of the economy. And we are frustrated that our government (read: gummint as gnome would say) does not understand or care about that. That's what is frustrating. Get with the program.