Remember last month when everything worked? September was beautifully green ... then mid-October hit and we took a big red shit. (see DOW chart) ...so.....September was super nice, ... why? ... rate cut lovin' in mid-August!!What's next week? ... your mom's birthday...j/k... it's HALLOWEEN & FED MEETING RATE CUT DAY! ... BUT, What if September's market keep going higher?... look at the beginning of OCT on the chart "record highs-record highs".......would BEN really cut next week with a record breaking market on the news? no way... soooo what does our wonderful AMERICAN market do? sells off 420 points, hehe, turns redder then a bears ass and makes the entire market look like HELL .......we bulls are crafty!
What happens next? the $1,000,000 dollar question ... The next 5 days?? and how bad do "we" need to make it look for BENNY BOY to CUT RATES FOR EVERYONE & GREEN UNTIL X-MAS!
6 comments:
the market is funny like that.
I second this. I see another rate cut in the making.
Even if benny thinks the market has a rally going on he knows well that this mortgage crap has not had its worst impact yet. The economy needs to brace itself for that by lowering interest rate
that shows your immaturity and your lack of understanding of how the financial markets work!
Fed doesn't cut rates just because the market falls for a few sessions.For that matter their decision depends on many many more factors than except for DOW and its fall......
""""For that matter their decision depends on many many more factors than except for DOW and its fall......""""
ofcourse, but this chart is how we decide to look at the economy as a whole...its ok if you have other methods....we just know that the market cannot go up, atleast not too much in the next 5 days. that is our point.
did you see BG today! and EMC!
the DIPfolio is strong!
"that shows your immaturity and your lack of understanding of how the financial markets work!"
I agree that looking at the market is not the only way of deciding. But its an important factor at the same time. It gives ben a picture of how the economy is doing (besides looking at other numbers of course).
On the other hand the question begged to be asked is ... if you think people are "immature" and "lack understanding" why are you on their blog in the first place?
A down market means a bunch of things:
Lower market caps for all lower companies
Therefore less favorable interest rates to those companies, because their lower market caps mean they're worth less and can put less up as collateral
This naturally is relevant to the credit crunch.
It means less investor confidence. It's similar to looking at consumer confidence, but from the investor side instead.
They do not ignore the market, and a ploy like this could possibly work.
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