possible rate cut this tuesday;will it boost home sales & prices?

[one_muggle]

I remain very agressively short the stock market.<.cite>

Several analysts on CNBC agree with you, which is surprising since I find they lean bullward (?)
Their gist:
25bps likely, market expects (wants) 50.
If they get 0, calamity (at least short term)
If they get 25bps, (market down)
If they get 50bps, (no effect)
If they get 75bps, (utter panic)

Interesting nonlinear impact–signs of very volatile system.

[(former)FormerSanDiegan]

I remain very agressively short the stock market.

Several analysts on CNBC agree with you, which is surprising since I find they lean bullward (?)

As more and more people and media outlets become bearish, it becomes a bullish sign for stocks.

[HereWeGo]

I’m not so sure the Fed is as important as the broker/investment bank earnings.

If E-Trade took a 30% hit to earnings based on mortgage write-offs, what’s going to happen to Lehman and Bear? Yikes.

[stansd]

Agree with your assessment…fed funds futures are showing an almost 100% probability of a 50bps cut.

Personally, I think the probability of a 25bps cut rather than 50 is more substantial than the market implies, but who am I to try to outforecast Mr. Market.

Stan

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