Wednesday, Nov 28, 2007
This beggars belief! The US economy is mired in debt and Wall Street ignores this and focuses on thoughts of yet another deep IR cut in a few weeks time.
Bloomberg: Stocks Rally for Second Day; Citigroup, Ebay, Amazon Gain
U.S. stocks staged the biggest two- day rally in five years, led by financial shares, after Federal Reserve Vice Chairman Donald Kohn reinforced expectations for another interest rate cut.
Posted by tyrellcorporation @ 06:33 PM (462 views) Add Comment
6 Comments
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1. Stevie Dee said...
Tyrell C. I wouldn't worry, if you have noticed when the market has lagged a couple of months ago, the market stormed ahead to 14,200 ish when we had fed intervening with cuts, then the dow slowly declined and then more whispers of fed cuts and away up again, and now falling back to 12,800 ish, then after more whispers from our friends at Goldman's and others, we see more gains today. It is market scrambling for positives, but like any drug, the effects will soon wear off. I'm just intrigued to see when the market faulters again after the next cut how far the fed will go before the whole thing does goes bang.
2. japanese uncle said...
There is no medicine for a junkie but another dope.
3. Quiet Guy said...
"There's also huge relief that the worst of the financial crisis may be behind us"
LOL!!!!
We (the heavily indebted Western World) is nowhere near the worst yet. That quote was unbelievable.
Is my pension in the hands of people who think like that? Not so funny.
4. alan said...
Whenever I read the US press, it always seems to be focussed on Wall St and the Dow/Nasdaq indices. The whole country is up to it's elbows in debt and nobody takes much notice.
The Arabs want to break from the dollar peg.
The Chinese and Germans want Wall St to play fair with loans
The US just wants an interst rate cut, indices roaring ahead..... and I can't understand the logic.
5. harold said...
Truth is, the FED has very little room to cut without destroying the $ and creating hyperinflation - therefore, it's depression time.
Forget Wall Street - they're so detached from reality that they'll buy anything. Irrespective of IRs, the DJIA will be below 10,000 in 6 months time (IMHO).
6. Vicmac64 said...
Forget about America - the only last chance they have is Ron Paul, but they are too enslaved by Federal Govt and debt to go for him.
Thing is we are in a worse state of affairs - the full implications of our own nightmarish sub-prime plot haven't come to light yet.