Stock Market taking a dump after Fed rate cut announcement

[George P Burdell]

-0.76% for me today. Too many red numbers on my screen

 

[Miramonti]

Originally posted by: Slew Foot

Originally posted by: vi_edit
I've always wondered how much money is made off of plays from the FED actions. By this I'm talking "insider" knowledge.

Say somebody from "inside" the Fed lets it slip what they are doing before the call and options are made on that info.

I'm sure it happens, but it would be interesting to know just how rich some people are getting off that insight.

/tinfoil hat off

I do that, not that I have any inside info, but its usually pretty obvious which way the fed is leaning, the trick is finding out whats already been priced into the stock market.

Exactly.

The news pushed the market off a cliff, but it was already standing on the edge.

 

[Slew Foot]

Dec 07 puts for CTX (centex homebuilders) are up 200% today, too bad I had Jan 09.

 

[BlahBlahYouToo]

WTF are the "investors" and why do they base their decisions on news and speculation?

 

[MustISO]

I'm still trying to figure out if the average investor is just REALLY smart or REALLY, REALLY stupid. The stock market has become a joke IMO, rally on one report, crash on some speculation of something. Dear god people get a grip.

 

[Dacalo]

Originally posted by: MustISO
I'm still trying to figure out if the average investor is just REALLY smart or REALLY, REALLY stupid. The stock market has become a joke IMO, rally on one report, crash on some speculation of something. Dear god people get a grip.

Instilling fear and emotion is how brokers make money though.

 

[StormRider]

What would happen if people were only allowed to make money if their stock goes up? In other words, we can't short stocks anymore?

 

[5to1baby1in5]

Originally posted by: Slew Foot

Originally posted by: randay
do you think itll drop anymore?

My gut feel is that itll be flat to slightly down for a year or so, you're going to have a lot of mortgage mess to sort through for the next little while.

Until the sins of the next batch of greedy bastards catch up with them and trash the market more.

Tech Crash --> Enron and Co. --> Sub-Prime Loans --> ????

 

[BarneyFife]

Originally posted by: 5to1baby1in5

Originally posted by: Slew Foot

Originally posted by: randay
do you think itll drop anymore?

My gut feel is that itll be flat to slightly down for a year or so, you're going to have a lot of mortgage mess to sort through for the next little while.

Until the sins of the next batch of greedy bastards catch up with them and trash the market more.

Tech Crash --> Enron and Co. --> Sub-Prime Loans --> ????

Chinese/international stocks.

 

[Hacp]

Google just dropped 2 and a half percent. Buy if you can!

 

[StageLeft]

Get some of your assets out of the US. It's not too late

 

[IEC]

Originally posted by: Skoorb
Get some of your assets out of the US. It's not too late

Indeed. The US dollar will take ANOTHER hit after this recent rate cut. Our dollar is barely worth as much as a loonie.

I am disappointed in the Fed's actions. Rather than holding rates steady to force the speculators to eat crow, they're being bailed out.

 

[FrustratedUser]

Woah!

Dow 13,432.77 -294.26 (-2.14%)
NS&P 500 1,477.65 -38.31 (-2.53%)
Nasdaq 2,652.35 -66.60 (-2.45%)

 

[LegendKiller]

Not a big deal, it's still up what? 500 points from it's low point a week or two ago.

 

[GuitarDaddy]

I don't see much good news for the financial markets, I think we are in for some nasty times yet. We've just seen the tip of the iceberg with the subprime mess, and the current bail out strategies only delay the inevitable. Scared and frugal shoppers will disappoint retailers this holiday season, gas prices go up and the real estate market goes in the tank next year, DOOM DOOM

 

[Dunbar]

Originally posted by: StormRider
What would happen if people were only allowed to make money if their stock goes up? In other words, we can't short stocks anymore?

It would make the market less efficient. Shorting is unique in that it requires someone willing to accept your short position who is betting the stock will go up. One party wins and the other loses.

 

[silverpig]

I lost $1.4 million today


Good thing it's fake money

 

[ponyo]

I hate betting on the rate game so I sat on the sidelines. This quick drop ruined some of my future short setups. Time to revise my gameplan.

 

[puffff]

Originally posted by: Aharami
can someone explain why the stocks would go down after the rate gets cut?

<-- stock noob

Rate cuts usually help stock prices go up. In this case however, the rate cut was not as large as many were hoping. That's what's causing stocks to go down.

 

[imported_Lothar]

Originally posted by: Hacp
Google just dropped 2 and a half percent. Buy if you can!

No, thank you.

 

[richardycc]

year end rally FTW...and January effect for another win...yeah!

 

[imported_Lothar]

Originally posted by: Slew Foot
If youre looking for a safe play, now might be a time to pick up some AT&T. Profitable, increasing its dividend, and buying back some shares, its been good to me for a while.

VZ is good too.

 

[nonameo]

Originally posted by: GuitarDaddy
I don't see much good news for the financial markets, I think we are in for some nasty times yet. We've just seen the tip of the iceberg with the subprime mess, and the current bail out strategies only delay the inevitable. Scared and frugal shoppers will disappoint retailers this holiday season, gas prices go up and the real estate market goes in the tank next year, DOOM DOOM

What? No need to be frugal! Just put it on your credit card! Problem solved!

We're in a time when a poor economy doesn't mean less spending, it means more debt.

 

[randay]

so why does the dow show as up when its really down?

 

[randomlinh]

Originally posted by: Ns1
woooooooo i wonder if student loan consolidation rates will drop

that would be excellent

mine are locked in at 3%... the ones i could lock in. the private student loans.. have yet to budge after all these cuts, it's pissing me off.... i just found out it's only updated every quarter, sigh.