Posted on 03/18/2008 10:37:37 AM PDT by cardinal4
NEW YORK - Wall Street barreled higher Tuesday as investors found relief in better-than-expected results from Lehman Brothers and Goldman Sachs, and anticipated a massive interest rate cut from the Federal Reserve.The Dow Jones industrial average surged 300 points.Investors, while they've seen a number of huge advances amid the market's recent volatility, appeared considerably more upbeat than in the past few days. They're confident that when the Fed's meeting lets out at 2:15 p.m. EDT, it will reduce the target federal funds rate by a full point, bringing the rate to 2 percent.
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A full point cut, from 3 to 2%. That to me would scare the bejeebers out of me because it signals that the bottom is falling out of everything.
With that said, it might be better than doing things piecemeal.
Heck, the dollar has probably already tanked on anticipation of the cut.
There is no way to prop up the dollar, unless offshore interests dont stop dumping it/them..
As if there is a whole group of people who move based on that particular news.
Whether the market goes up or down each day, they can pick any news item of the day as ‘the reason’ for it.
The good news is maybe we can fill Chinese Walmarts with cheap american made products, preferably painted with lead paint.
I always thought Greenspan kept the rate too high, applying the brakes constantly.
That said, a full 1 pt cut after the previous cuts is a little unnerving, but I hope I can re-fi my mortgage.
Yes it is.
but I hope I can re-fi my mortgage.
I'd say "me too" but I probably don't have the equity to get that done. banks aren't as freewheeling as they were 2 years ago when I got my 30 year fixed.
We just got a fixed 30 year as well, and it wasnt at a great rate. In another six months we will have the equity to re-fi again, but will it matter? Its scary to drop a full point afer successive cuts leading up to it..
I always shake my head about that — some “expert” with so-and-so knows PRECISELY why the market rose or dropped just a few hours before...
I just refinanced mine last month.It was no trouble at all.Banks still want to lend money and credit card offers keep on coming.Go ahead and refinance now,with rates still extremely low.I predict they’ll be going up for quite a while.
Prosperity jitters rocked the market with Wall Street investors worried that, as one trader put it, “Tomorrow might be better than today, American ingenuity might solve our current challenges…and then how would I feed my kids, and fuel my Bentley.”
Throughout the financial world, many analysts woke up to the fact their entire lives are based on investing in gossip, guesswork and greed, and wagering against their own neighbors and friends.
“It just struck me,” said one unnamed stock trader, “I come out here each day and bet against the greatest creative minds, and the most gifted and diligent workforce ever assembled in one nation in history. I’m thinking of giving it all up to start my own business selling crack to school kids.”
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