My thoughts on the rate cut today.

[Goods]

Fed only throws a surprise rate cut when the economy is in the toilet. The infuse of liquidity earlier this week didn't have the effect they intended and a rate cut is the next logical step in slowing the slide.

Today's cut was nice and the market reacted accordingly. Here's the thing. If the economy continues to tank, the feds will be expected to cut rates again during the next scheduled meeting. Having a surprise cut will bring the market up short term. An expected cut won't have the same effect. It's an admission of a bad economy, who wants to invest in that?

If rates continue to drop, this will help the crushed mortgage and auto markets. These are good longs as rates fall- more people can afford things with lower rates.

Just my opinion.

[KellosJ]

A very good opinion

[ghoopin]

It will be interesting to see where the next month takes us. Great take Goods. I'm sure glad I never bought into Blackstone. That thing has done nothing but tank since 2 weeks after the IPO.