I waked up at 5:30 this morning, and turned on CNBC. I knew all the markets are down last night, but I am still curious what the US market will look. One of the reporter in Tokyo says all the eyes are on the US Fed (hint a 75 base point cut). I went back to sleep afterwards.
I waked up again at 8:00 AM, I kind felt Mr. Bernanke and the Co. had the emergency meeting and will cut 75 pts.
Yes, it did. But there is one problem, the Dow and Nasdaq futures are still down a lot…
Back to the question, initially it’s the wall street bankers, lenders, home builders, home speculators, Mr. Greenspan…intentionally or un-intentionally, caused this crisis.
But Mr. Bernanke, if I could figure out this thing before you do the cut, the market also will…we will see more bloodshed on the wall street, at stock markets from Australia to China, to UK…
I think this “too late cut” is as stupid as two things happened (Ping An Insurance, Cheng Si Wei) in China on Monday 🙁
The following is a picture showing the DOW components pre-market movements.
(Source: bespokeinvest.typepad.com).