Why is the stock market cracking and how many days will we this fall?

Question

The Fed cut 25 bps as expected but still the Dow, Ftse, Cac, Dax, all markets are down?

Answer 1

Because they wanted more.

The market is confused. Some people want to put there money there instead of the bank or their own business, so some things get bid up. There is a slew of uncertainties, so some people are taking money out, so some things tank when they dump them. Until trends and confidence more steadily improve, or worsen, the market is going to flop all over the place like a school of frightened fish turning on a dime to avoid the next predator or find the next meal for themselves. Since so many people key on the same narrow sets of information, often conflicting information, there is no consensus yet. Don't like it? Keep your money in the bank. Got a strategy that doesn't matter, keep to it.

Answer 2

The stock market is inherently volatile and goes up/down for many reasons, not just Fed interate rate changes. In fact, it typically overreacts to good or bad news.

Answer 3

Look at our country's economy.... it's really bad.Everything from gas to groceries to real estate, is getting more and more expensive. Watch the news and pay close attention, to prices. I am presently living in NC, I've been here since April, there are homes that have been up for sale for months. No one an really afford to buy because the interest rates are are way up. When the economy is bad it affects EVERYTHING.
I heard on the news about 2 months ago that our government is expecting our economy to bottom out in 2009 . I think you know what that means ..........a depression. Better get ready, because it's going to be really bad.

Answer 4

Because the CYP (The 5th highest valued currency in the World) will be replaced by the Euro on 01/01/2008