Fed comes to rescue!
Posted by Frugal on January 22nd, 2008
A pre-open cut of 0.75% was good. That’s just about the right size.
If there are any really beat-up stock, now may be time to refill them a little.
If this is a multi-days rally, I think you should sell the rally.
After the fed cut, I see overall markets are still down. But at least less panic indeed.
Unfortunately with 0.75% cut, I think the overall stock market and economy is still heading downward. Today will definitely NOT be the lowest point in 2008. Mark my words.
Best luck.
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January 22nd, 2008 at 6:45 am
I agree. A year ago I was watching Dora the Explorer with my daughter and today we are watching CNN. This does hurt all of us; families, corporate, world wide investors, and moms like me. Good luck to us all.
AKB
January 22nd, 2008 at 12:36 pm
I don’t understand the rate cut celebration. It’s not going to fix the sub prime losses, it’s not got to fix the weak dolor, quite the opposite, and it isn’t going fix unemployment.
The only good I see here is that the market is typically in favor of rate cuts and typically rallies. However we are seeing the long term effects of those cuts now, so we should realize that it’s only a temporary fix.
That’s just my two cents.
January 23rd, 2008 at 1:20 am
Frugal,
On the other hand, can you comment on how much will this move current ARM rates down by? I am sure 0.75% is not going to be an eaxct 0.75% decline is what mortgage companies do to their existing ARM products…
I have a 5.875% 5/1 ARM that is only 7 months into the term. Should I begin to look for a lower 5/1?
Sorry for the questions, if they are completely irrelevant to the blog’s original intent…
Rgds,
Mike