rate slashed by half percent, stocks up! woot woot!

 

ed.. waht heck?

 

/sigh

 

yay... I made back all the money I lost from the drop earlier.

the problem I have about getting excited is that the rate drop caused the increase and not solid economics of businesses doing good.

 

It is a good thing. Hopefully this will reduce the number of foreclosures, that is what it is intended to do anyway.

 

no it won't really help that at all. the balloon loans that caused this will not un-balloon so people who foolishy purchased more house then they can afford are still screwed.

what it will do is encourage people to take money from savings accounts (what happens with high rates) and put it back into stocks.

the increased confidence people feel encourages them to invest and spend more on thing like new cars (rates come down) which in turn helps the market.

 

Dude, they lowered the prime rate. Many of the adjustable rate mortgages are based on the prime rate. I realize that a ton of people are still going to be screwed, but it will also help quite a few people. Your analysis is also true, but it is intended, at least in part, to help with the number of foreclosures.

 

Yep, where do you want me to start. Biggest winner for the year on the big boards is the self fullfilling prophecy of Baidu or ticker BIDU.

Hit 282 yesterday.

 

Helped some of my various mutual funds and what not...but still had to sell several of my stocks which rose briefly but then dropped so....

 

its not a good move, but its the only move in a worst situation