Intraday Market Thoughts

Archived IMT (2008.12.13)

by Ashraf Laidi
Dec 13, 2008 1:13

Next week will be the last full trading week of the year but it won't be over for rampant market speculation--over the magnitude of the Fed's rate cut and the US Treasury's attempts to rescue Detroit. Tuesday's FOMC decision is expected to produce as much as a 75-bp rate cut to new low of 0.25%. The Bush administration may try to save face of the Republican party (largely blamed for rejecting the $14 bln rescue to US automakers) by tapping emergency funds of the TARP package and extend a shortlived lifeline. Eternal bulls may argue that an approved rescue and a 75-bp FOMC will help implant a bottom in stocks. But real impact of such measures is doubtful in a deepening recession.


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