The DOW closed on an upswing today nearly at 9000, and the S&P also closed on an upswing at 913.
The big deal was the Fed cutting the interest rate to .25%, and Goldman's losses not being nearly as deep as investors had feared.
The DOW closing at close to 9000 seems to be a monthly event. Everybody wants to see these numbers stick but why would they. With the experts repeating the mantra that things will get worse before they get better, this translates into getting ready to take a deep dive. Let's hope they are wrong and hope seems to be playing a role in the economy.
Reuters: Stocks soar after Fed rate cut
Stocks rallied on Tuesday after the Federal Reserve rewrote its playbook by slashing borrowing costs to a record low, even zero, and pledging more unconventional steps to fight the deepest recession in generations.
4 comments:
You know things are leaving the land of the rational when the FED makes the market boom by lowering rates to 0%. This isn't a sign of confidence in my book. It's more like we've now arrived at that emergency room moment when the Emerg. Drs. reach for the paddles because the patient is flat lining.
I would agree. It seems they are trying to create an artificial bounce for the holidays or maybe as a send off for Bush. Bush leaves saying the DOW is at 9500 and the economy is showing signs of coming back to life, all is not ruined. Except that it is ruined and the worst news is still coming down the tubes.
We know one thing, they can't cut interest rates any more. What the hell is next - lets print up 5 trillion in cash and fly planes over the country dropping bundles with parachutes.
Actually the parachute idea makes a lot more sense then giving the $$ too the same crowd that has already destroyed the economy. Hell, why not just give it all too Bernie Madoff , I'm sure he'll promise us an 11% return..right?
We are in the process of moving and packing. I saw a bank document from 1995 and the bank was paying 5.25% interest for a 12 month CD! People would ditch all their stocks even at bargain prices if you could get even just 5.25% at a bank now.
Right now we are getting negative 60%.
That 11% interest scheme probably could have gone on forever. I don;t know the details about how he got caught.
Post a Comment