As we've seen on other cut days, it didnt take long after the Fed rate cut this afternoon for the bond market to kick in and see a pricing adjustment for the worse. All of 9 minutes after word of the 3/4% cut was posted on CNN.com my inbox started receiving pricing adjustments. Some lenders have already made 3 rate sheet changes since 2:30 ET and it's only 4:15 right now.
With the Dow up over 400 points today I wouldnt be at all surprised to see it fall after open tomorrow. Some of those euphoria day-traders might just want to cash in quick with all the gloom and doom still circling.
I'm still not convinced that a 3/4% cut today was what we really need. Inflation worries, runaway oil prices and the weak dollar hurts us all. The market has continued to fall after the last Fed cuts, of course only after the quick spike. Can you imagine the market reaction if the Fed had NOT cut today?! they actually expected more than this...
Ejoy the roller coaster ride!
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