JC, how many bottle of reds have you been drinking tonight ? A 1929 style correction tonight will only happen if the Feds cut rate tonight since everyone is expecting they will cut and when they do, traders will begin to ask "we must have some serious problem here for the Feds to cut rate".
The Dow is only over 6% down from the recent all time high and every business and media analysts on CNBC are calling for the Feds to bail the market from falling further. If Big Ben listen to them then his credibility of fighting inflation is out the door and cutting rate will not fix the subprime problems and the housing collapse but it likely to cause inflation to rise even higher as other rich US consumers will go on the spending spree.
We live in a world of greed and greed is good.
More news for you all to consume and be prepare.
Merrill Lynch cuts raft of mid-cap banks to sell
By Simon Kennedy Last Update: 7:08 AM ET Aug 23, 2007Print Subscribe to RSS Disable Live Quotes LONDON (MarketWatch) -- Merrill Lynch downgraded a raft of mid-cap regional banks citing a range of factors including lower earnings expectations and the potential for margin erosion at some of the banks if the Federal Reserve cuts interest rates. The broker said banks with balance sheets that are very "asset sensitive" -- meaning their assets reprice more quickly than liabilities -- could face margin pressure. It downgraded City National Corp (CYN:City National Corporation News, chart, profile, more Last: 74.32-0.39-0.52%
FMER20.70, +0.10, +0.5%) , First Midwest Bancorp (FMBI:First Midwest Bancorp Inc News, chart, profile, more Last: 35.92-0.16-0.44%
7:18am 08/23/2007
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: FMBI35.92, -0.16, -0.4%) and Texas Capital Bancshares (TCBI:texas capital bancshares inc com News, chart, profile, more Last: 23.00+0.15+0.66%
7:16am 08/23/2007
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: TCBI23.00, +0.15, +0.7%) all to sell from neutral. It also downgraded SVB Financial Group (SIVB:svb finl group com News, chart, profile, more Last: 52.89+0.55+1.05%
7:16am 08/23/2007
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: SIVB52.89, +0.55, +1.1%) to sell from buy.
(20min delay)