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Old 01-22-2008, 08:22 AM   #10
Flames89
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Originally Posted by Top Shelf View Post
Well, from what I can interpret, it is a panic move by the Fed. How does that influence the psychology of investors?

There are serious frickin problems in States and I think this is just the beginning.

Everyone knew already that the Fed was going to cut .5% next week. So this was already priced in. About 25% of investors thought that the movement was going to be .75%.

They moved quicker and sooner, but inline with their statements and market expectations - so I don't see it as "drastic". Hell, if George didn't open his untrustworthy yap last week the Fed may have been able to wait until their meeting next week.
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