Rate Cut Announcement – Will Wall Street Survive?
The Federal Reserve is expected to announce their rate cut today. Wall Street hangs in the balance, so to say, waiting for the ball to drop. The market was back down this morning with the anticipation of the rate cut…we are all kind of holding our breathe wondering what is going to happen next.
I for one am thinking this rate cut won’t have a long term effect on Wall Street like most are hoping to see. Etruscan and I were having a conversation last night about how volatile the market truly is right now. The fact that it plummets to an almost uncanny death then a week later it rocks back to a record high!
The bank bailouts and housing crisis, we are scared to change jobs because who knows if we will even have one two weeks from now. People are holding back on spending for the upcoming holidays because they are trying to make their rent or mortgages. In the northern states, it’s the price of oil to heat your home that is killing people.
Maybe I’m crazy here but is it me or are we just in an uncertain time of economic foreplay with our asses just hanging out there asking for the punishments?
Your thoughts? Concerns? Questions?
Alot of the problem is that the entire credit market economy is based on speculation. In the sense that we make or loose money based on trying to predict what will happen next, as opposed to any real gradient of the scarcity of commodities. The whole thing is necessarily perception driven. Rumors of a panic create an actual panic. I’m not sure that it’s possible to ever really fix that kind of system. It might mean a return to an actual goods and services valuation…