Wednesday, October 29, 2008

Fed rate cut won't make a difference in stock market; don't buy the lie of a new bull market

CNBC analysts a moment ago agreed that the expected Fed rate cut today will not make a difference in the financial markets.

One great comment held that the banks will not be lending money, just now at a lower rate. They're hanging on to all their money because they know more of their home loans will go bad because values will decline another 20 percent.

So the federal government has been putting $250 billion of your money into banks that are not going to lend. Outrageous.

So, keep your money out of the market. Don't be motivated by greed. What goes up must come down. In this market, however, it will come down more quickly and head toward 6300 from its current position of 9000.

The Fed is simply playing catch-up with its rate cut. But the game has already moved further down the field.

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