Global Selloff
Now that recessionary fears have spread globally, all the traders are clamoring for a coordinated rate cut by all the Central Banks. The bailout/rescue bill passed Friday is now being seen more as a bandaid than a solution, and interbank lending still remains non-existent.
Remember that cash and investors still exist, there's still a lot of sovereign cash out there in the Persian Gulf and China waiting to be deployed. The players in this crashing market are the sellers who are forced to sell.
Next? Trust needs to be restored for investors by a demonstration of a "throw everything at the problem including the kitchen sink" strategy on a global level. Expect a coordinated global rate cut to lower all interest rates, maintaining the dollar's strength while factoring in that the recession will limit inflationary risk.
Pat,
Could this at last be the long-awaited market bottom--or something close to it?
Chatter of depression could be flags.
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