The markets responded to Bernanke's spirited talk of another 'substantial' cut in the interest rate later this month by gaining a credible amount yesterday. Today, however, more bad news prevails with Merrill Lynch taking a bigger hit than expected and American Express getting in on the bad loan caravel.
Also, savvy investors, and there has to be some of them out there, realize that cuts to the interest rate are designed to ease credit and borrowing fears essentially in the housing market... the one market where, right now, nothing's going to help until a major reorganization or underwriting of the, as yet undefined, crapload of worthless debt takes place.
It looks and smells like panic!
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