Why BAAAAD?!
All we’ve heard for the last 24 hours is how our markets would PLUNGE today...all doom and gloom. May still happen, but I don’t see it right now.
The +50 figure reflected that analysts anticipated a move by the Fed and probably figured it would come early...as has now happened. In other words, the cut was already factored into the futures market.
If world central banks follow the Fed, I hope things will settle down. We’re not out of the woods, but we’re not completely in them either.
The ECB should NOT follow Bernake's panic-laden actions, which are rightly being panned this morning in all circles.
The futures are now LOWER than before the panic cut was announced. If Bernake had chilled out, he could have allowed the markets to try and rally off this, holding a rate cut in his quiver "in case" they didn't. If the markets sell off now, what can he do? He has shot his wad. Hopefully cooler heads will prevail, but the Bush-Paulson-Bernake show has so far been a bust.