It was an interesting day for the stock market. It dipped to a 15 month low and the feds cut interest rates the most in one cut in 23 years.

From the New York Times

Stocks averted a precipitous fall on Wall Street on Tuesday after the Federal Reserve announced an emergency rate cut in the face of a worldwide sell-off. But the market still declined to its lowest level in 15 months.

After falling by nearly 4 percent at the start of trading in New York, the Standard & Poor’s 500 stock index rebounded to within a few points of its previous close, then continued to fluctuate. At the close, it was down 1.1 percent, or 14.69 points.

The Dow Jones industrial average followed a similar pattern and closed at 11,971.19, down 128.11. It was the lowest close since Oct. 16, 2006, and left the index down almost 10 percent since Jan. 1. The Nasdaq composite index ended down 2 percent.

It was the most volatile day of trading in five years as investors tried to sort out the significance of the Fed’s rate cut, announced about an hour before markets opened. Before the cut, some overseas markets had declined 10 percent in two days, and stock index futures were pointing to a decline of nearly 5 percent when Wall Street reopened after a holiday.

The move cut the Fed funds rate, the central bank’s target for overnight interbank interest rates, to 3.5 percent, from 4.25 percent. It was the biggest percentage point cut in almost 23 years.

Source:
http://www.nytimes.com/2008/01/22/busin ... ref=slogin

Watch the Fed, they meet next week, I believe and they could cut it again. Tryoing the easy fix for the markets. The market ride should tell people that the economy sucks, especially when the Fed did that and the markets still close down 100 pts.

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I'm not an economist but throwing money at the problem isn't going to fix it. IMO. It seems to help in the short term but the problem that started all this is still there.

All these so called fixes are just what you said short term. And so far I have not heard one thing from either side that would help in the long run. I think they are hoping it will just go away.

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I think they should be careful what they wish for.

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I'm reading a lot of headlines about losses in the last quarter of big corporations. I'm thinking their bubble is going to burst shortly. The fed is really scrambling trying to hold this all together.