Wednesday, January 30, 2008


So the Fed cuts another half point - pretty unreal. Why the market doesn't take this as "holy crap! things are really bad!" is beyond me...

Wall Street extends gains on Fed rate cut
Wednesday January 30, 2:37 pm ET
NEW YORK (Reuters) - Stocks extended gains on Wednesday, sending indexes up more than 1 percent, after the Federal Reserve slashed interest rates by a half-percentage point, boosting hopes that the economy would avert a recession.
The Dow Jones industrial average (DJI:^DJI - News) was up 56.58 points, or 0.45 percent, at 12,536.88. The Standard & Poor's 500 Index (^SPX - News) was up 7.97 points, or 0.59 percent, at 1,370.27. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was up 11.28 points, or 0.48 percent, at 2,369.34.

I think that if the chips were on the table Citibank, Countrywide, maybe UBS, and others would probably be out of business. A real global financial disaster. So instead the Fed is going to keep spreading the cheap money around, keep propping these entities up, and hope that the country comes through it. Free markets - my ass.