The New Fed Shock & Awe—20 Minute Portion

Yesterday’s 50 bp “emergency rate cut” capitulation by the Fed and the market’s subsequent down-spike tells us a lot about current sentiment. It’s not good. Following the lacklustre G7 call to discuss the crisis and more dither, the market basically concluded: “We don’t believe you can do “whatever it takes” to avoid recession and market crisis. Prove you can!”