Down 200 points. Up 125. That is what we are dealing with today for the Dow Jones…and that’s just the first 45 minutes. The futures were significantly lower this morning and the market was right on cue with a major loss at the open. However, the market got a shot in the arm when the Fed and four other central banks cut interest rates by a half-point.
The move was aimed at restoring investor confidence in the market and although it was another quick fix, it ain’t gonna help. Ten minutes into this blog, the Dow has now turned negative.
Other “banks” joining the “rate cut party” were Bank of Canada, Bank of England, European Central Bank, Swedish Riksbank and the Swiss National Bank. These cuts were aimed at soothing the already traumatic conditions that exist in the market and to help calm the global financial crisis.
Good luck with that. The “cleansing” of the market is going to take a minute and these quick fixes have only been good for “hour-long rallies” and sometimes not even that.
I’ll be back in a few hours but I wanted to update everyone on what we are seeing this morning. The Dow is now down 70. Bright spot? Gold is back over $900/ oz., up $23 to $905.