Tuesday, December 11, 2007

U.S. Stocks Fall After Fed Cuts Benchmark Rate by Quarter Point

Stocks are supposed to go UP in response a rate cut. Good illustration of the world going topsy-turvey.

By Eric Martin

Dec. 11 (Bloomberg) -- U.S. stocks tumbled the most in a month as investors speculated the Federal Reserve's quarter-point interest-rate cut will fail to prevent a recession.

Click here for the whole story

1 comment:

Anonymous said...

As has been discussed for a few weeks, the market had already fully priced in a 0.5% reduction - the drop today was in response to them being wrong in their estimate of the Fed's actions.

"...as investors speculated the Federal Reserve's quarter-point interest-rate cut will fail to prevent a recession." Good grief. As if.