This was not a cut in the prime rate, which is what you usually hear about, but a cut in the rate for lending to financial institutions. This rate cut covers only short-term loans that financial institutions get directly from the Federal Reserve. This doesn't apply directly to the public. But, the Fed is meeting Tuesday and may cut the prime rate again. See this story: http://my.earthlink.net/article/top?guid=20080316/47dca950_3421_1334520080316-224959141
Yes, it's the discount window, but how often does the Fed cut on a Sunday night. They're trying to calm the markets after this Bear deal. The fact that Bear was sold for $2 a share says a whole heck of a lot. Their books must have been *awful*. And if their books are that bad, there are others. And a lot of nervous investors may be trying to pull their cash out.
The Nikkei just opened down 255, their futures were up 130 prior to the Fed and Bear deal announcements......so that's almost a 400 point swing.
Tomorrow could be one hell of a day in the markets. It's really tough to know what to expect, but the downside risk is immense right now.
Yes, it's the discount window, but how often does the Fed cut on a Sunday night. They're trying to calm the markets after this Bear deal. The fact that Bear was sold for $2 a share says a whole heck of a lot. Their books must have been *awful*. And if their books are that bad, there are others. And a lot of nervous investors may be trying to pull their cash out.
The Nikkei just opened down 255, their futures were up 130 prior to the Fed and Bear deal announcements......so that's almost a 400 point swing.
Tomorrow could be one hell of a day in the markets. It's really tough to know what to expect, but the downside risk is immense right now.
OMG that is so scary It almost like they are expecting the market to crashand Bear is being sold at $2 per share
this is horrible they are valuing Bear's book at almost nothing. This is so bad, I have no words.