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James48843 said:
Down we go some more. S&P now showing down 0.68%.

Now the Fed is spending some of that money. More money down the tubes.

When will Paulson figure it out?

Two things Mr. Paulson- to fix the mess. No new legislation needed, and nothing more than rules you can have the SEC issue:

First- #1 . No more naked shorting on anything. If you want to short, you have to actually borrow the stocks FIRST- before placing the short order.

If you are caught "selling short" without being in possesion of the stocks you are shorting, first offense- you are banned from trading for 90 days and fined lightly (Say, five times the profit or loss you made on the change in value of the stocks you didn't have to sell short).

Second offense. You are banned from trading for a year and fined heavily. (Say the underlying value of those stocks.)

Third offense- banned for life and accounts siezed.

If you are going to "short" the market, then do it legitimately, with shares in hand, PRIOR to making the short order.

And then #2: Reinstate the Uptick Rule.

No short selling until you get an uptick in the price.


Do those two things, Mr, Paulson, and the markets will calm down. It doesn't cost you a dime. Both of those rules were in place at some time in the recent past. Both of those rules were removed as part of the "W" deregulation of the markets. Both should be put back in place for the good of stability.

Do those two things- and markets will be much better.

Please Mr. Paulson and Mr. Cox:

Treasury and SEC:

Before you do anything else, spend any more billions, just do those two little things. Please???
Click to expand...

I agree 100%. Their removal is one big thing that has led to the instability of the market.

CB
 
Last edited:
Briefing.com:
At the Sept. 16 FOMC meeting, the fed funds rate was left unchanged at 2.00%, with the Fed citing significant concerns to both downside risks to growth and upside inflation risks. The decision was unanimous.
The minutes for the Sept. 16 FOMC meeting were just released. The minutes stated that some policy members leaned toward a rate cut, as the the Fed saw easing in inflation risk. Some policy members felt intensifying financial strains that led to the economic outlook worsening will prompt for a rate cut at the Oct. 29 meeting.
 
weatherweenie said:
Briefing.com:
At the Sept. 16 FOMC meeting, the fed funds rate was left unchanged at 2.00%, with the Fed citing significant concerns to both downside risks to growth and upside inflation risks. The decision was unanimous.
The minutes for the Sept. 16 FOMC meeting were just released. The minutes stated that some policy members leaned toward a rate cut, as the the Fed saw easing in inflation risk. Some policy members felt intensifying financial strains that led to the economic outlook worsening will prompt for a rate cut at the Oct. 29 meeting.
Click to expand...
Oct. 7 (Bloomberg)
The Fed's plan to buy commercial paper caused traders to pare bets on the size of a potential rate cut by the central bank's Oct. 29 meeting. Fed funds futures imply a 14 percent chance of a reduction of 0.75 percentage point by the next meeting, compared with 58 percent odds yesterday. Traders today are pricing in 86 percent odds of a half-point cut. The rate Bernanke signaled policy makers are ready to lower interest rates as the credit freeze worsens the outlook for U.S. economic growth and as inflation concerns wane.
``In light of these developments, the Federal Reserve will need to consider whether the current stance of policy remains appropriate,'' Bernanke said in a speech in Washington.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a5OsPogODJSk&refer=home
 
08:09 am : S&P futures vs fair value: +31.90. Nasdaq futures vs fair value: +24.00. Stock futures suggest a sharply higher start to the trading day after global central banks made a coordinated interest rate cut. S&P 500 futures were as much as 49 points below fair value as overseas markets tumbled, but rebounded on news that the Federal Reserve, European Central Bank, Bank of England, Swiss National Bank, Bank of Canada, Sveriges Riksbank made an emergency intermeeting coordinated 50 basis point rate cut. The fed funds rate is now at 1.50%, and the discount rate is at 1.75%. The Bank of Japan expressed support for the coordinated effort (its rate is already at only 0.5%). In corporate news, Alcoa (AA) kicked off third quarter earnings on a negative note, with its earnings per share dropping 39% to $0.37, which was $0.24 worse than forecast. Wal-Mart (WMT) continues to benefit from bargain-hunting consumers, with September same-store sales climbing 2.4%, which met expectations. On a similar note, Costco (COST) reported fiscal fourth quarter earnings that topped expectations. Yum! Brands (YUM) also topped expectations for its latest quarter.
 
CNBC mentioned the Icelandic Banks failing to participate in something ?
Rate Cut ? Anyway, great article to read, thanks !;)
 
Because with all the failure why would a half point drop in rates effect the market positively. I see it as desperation which will fuel the fire to seel and get what you can while you can. This is not the bottom!!
 
08:34 am : S&P futures vs fair value: +16.00. Nasdaq futures vs fair value: +4.00. A positive start is expected, although futures give up a large portion of their gains. Target (TGT) reported a 3% same-store decline in September, which was worse than the expected decline of 0.8%. In addition, Target said its third quarter earnings may fall short of the median analyst estimate due to weak retail growth and higher net write-offs in its credit card segment. The global coordinated central bank cut this morning came as credit markets remained extremely tight and overseas markets tumbled -- Japan's Nikkei fell 9.4% and Hong Kong's Hang Seng declined 8.2%. Interbank lending in dollars, known as Libor, climbed across all terms, with the overnight rate spiking to 5.38% from 3.94%, indicating that banks remain very reluctant to lend to each other. Prior to the rate cut, Britain announced a plan to bailout its banking system, which included a pledge for $87 billion in direct support for eight major banks, according to the New York Times. In European trading, France's CAC 40 is down 0.3%, Germany's Dax is 1.1% and London's FTSE is up 0.4%. This is a large improvement to pre-rate cut levels, when the they were down around 5%.
 
09:00 am : S&P futures vs fair value: -11.50. Nasdaq futures vs fair value: -29.00. Stock futures give up their gains and now point to a lower start as European markets fall. The Ted Spread -- the difference between what banks pay for three month loans (3-month Libor) and what the U.S. government pays (3-month T-bills) -- is up 44 basis points to 4.00%, which is a sign that market unease remains high. September same-store retail sales have been mostly disappointing. Saks (SKS) reported a 10.9% drop, compared to the expected decline of 5.5%. JCPenney (JCP) saw a 12.4% decline in sales, which was worse than the expected decline of 9.4%. JCPenney also lowered its third quarter earnings guidance well below expectations. Kohl's posted a 5.5% drop in same store sales, although that was slightly better than the expected decline of 5.8%. However, Kohl's said its third quarter earnings will be at the low end of its previous guidance, which is below the consensus estimate. American Eagle (AEO) met expectations with a 6.0% decline in same-store sales, but lowered its third quarter earnings guidance below the consensus estimate.
 
Bloody day ahead.

Futures now pointing down strongly, even with the rate cut.

I don't know if we'll end the day lower, but it sure looks like it will start lower.

Could be another roller coaster day.
 
Wed 9:18am ET- Briefing.com
S&P futures vs fair value: -30.00. Nasdaq futures vs fair value: -53.80.

(rate cut didn't seem to do anything in Europe. Now we'll see how the U.S. markets react).
 
Baby Rally today, maybe a good sell-off this afternoon from those who need to lick their wounds???????

Honestly, If you need cash now, I hope you're in today, but mark my words, interest rate cates can't keep coming!:suspicious:
 
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