Fed just cut interest rates 75 bp and the futures losses are cut in half from their limit-down lows.
Sorry Ben, it’s too late. And you panicked. We still haven’t had the big finale of a selloff where everybody is completely sold out. You’ve given people false hope and shown that you are another Greenspan.
Here’s a prediction: by the end of the day this rate cut will have had no net effect whatsoever on the earlier losses — all major averages will be down five percent.
Based on what I’ve seen in the last half hour, CNBC will find every permabull from the last year and give them uninterrupted segments, one after another, all day long.
There is absolute denial so far this morning that there is something out of the ordinary here, both today and in the past two weeks. “Today U.S. stocks are on sale”, “we’re due for a bounce and it will be a big one”, “we’ve seen this before, think about LTCM”, etc.
Never mind my earlier post about futures getting back to lows by the close; the way they’re steadily dribbling away since the initial spike up, they might make the round trip before we even open. And if that happens, it’s 1000 points off the DJII by the end of the day.
OMG Joe Kernan just asked Cramer about “the steady hand of the Fed”!