Wednesday, January 30, 2008

Big cuts and big drops

Well, Bernake took the big 50bps plunge today, and how did the market react? I think right along the lines I was thinking. Initial bump followed by the long term realization that a) Fed thinks economy is getting worse and b) the value of dollar is falling dramatically. These two thoughts along bad earnings reports from UBS and Yahoo helped to propel the nosedive downward.

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