Market Observations 08/19/07
Dance the Hanky Skanky... click your heels 3 times and repeat after Bennie & The Feds... there is no spillover.
This week Fed reanimation bigtime in the form of an emergency meeting with a 50 bps rate cut on discount rate (interbank funds) 6.25% to 5.75%.
FOMC Statement:
"Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward.
The downside risks to growth have increased appreciably. The "Fed" is prepared to act as needed to mitigate the adverse effects on the economy."
Seems the focus has gone from inflation to downside economic growth.
What is causing the adverse effects on the economy? I thought the economy was just fine. Whatever do they mean? Now repeat the mantra again...
Friday Japan's Nikkei 225 plunged 5.4%, logging its biggest one-day percentage loss since 2001.
Thursday: "perhaps a sideways "bargain" hunters updraft to 1422 or even 1435-40 by Tues". SP500 open 1411, surging 39 to 1450, bled to close 1445.
We still see major instability in the markets and sense that further bad news in housing & debt/credit markets will have this market back on its knees in the near future.
Friday New Homes & Durable Goods will not be pretty. What will the Fed do then, repeat the mantra again? And whatever will they cut next? Hmmmm...
Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
This week Fed reanimation bigtime in the form of an emergency meeting with a 50 bps rate cut on discount rate (interbank funds) 6.25% to 5.75%.
FOMC Statement:
"Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward.
The downside risks to growth have increased appreciably. The "Fed" is prepared to act as needed to mitigate the adverse effects on the economy."
Seems the focus has gone from inflation to downside economic growth.
What is causing the adverse effects on the economy? I thought the economy was just fine. Whatever do they mean? Now repeat the mantra again...
Friday Japan's Nikkei 225 plunged 5.4%, logging its biggest one-day percentage loss since 2001.
Thursday: "perhaps a sideways "bargain" hunters updraft to 1422 or even 1435-40 by Tues". SP500 open 1411, surging 39 to 1450, bled to close 1445.
We still see major instability in the markets and sense that further bad news in housing & debt/credit markets will have this market back on its knees in the near future.
Friday New Homes & Durable Goods will not be pretty. What will the Fed do then, repeat the mantra again? And whatever will they cut next? Hmmmm...
Often wrong, but never in doubt, this is the Nattering Naybob and you're not!
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