This is the problem gents. If they cut now it is a clear panic move. Who here is going to all of a sudden jump into stocks because interest rates go down another .50 or even 1.00. They would have to flood the market with massive amounts of cash to try and defend this target rate. If there is a bounce it won’t last very long. However, what if the banks basically say no thank you and keep their lending rates up and don’t drop them. This is ugly and dropping rates at this point won’t change the negative fundamentals in the near term. We are at a point where wealth preservation is paramount. During the Savings and Loan blow up in the early 90’s banks were going under at a clip of 2 a day. If you don’t think some of these big banks could go under with the current situation you are wrong. Please protect yourselves.
