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Dow Jones up 331 points on speculation of a Fed rate cut.

Posted by Adrian on November 29, 2007

The Federal Reserve may cut rates, which will only add some more life into a erratic and panic orientated market. Fed rate cuts at this point in time only serve to create short term rises with just as many major drops in all the main indices.

The possible Fed cut on December 11th will stimulate nothing (apart from short term stock market rises refer to DJIA chart) as the credit markets will continue to tighten and contract, so the consumer is going to be in no position to reinvigorate an already recessionary US economy.

The collapsing housing market in America is far from over, in fact home sales continue to plummet as property values decline – with less buyers coming into the market.

“The light at the end of the housing meltdown tunnel appears to be an oncoming train,’ Joel Naroff, an economist with Naroff Economic Advisors, said in response to the new figures. ‘With so many choices and so few buyers, the median price is cratering.'”

Check out a pretty cool article written in Fortune “Beware our shadow banking system”, quote from article, “These investments thrived as the shadow worked its voodoo; now its curse will sap money from the pockets of any and all who believed in its black magic.” (in regards to debt investments from the subprime mortgage meltdown)

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