Since when is a 1% drop in the Dow good news? The Dow close today was lower than any close since September 22, 2006. Just because a 128-point drop at the close is a happier ending than the five hundred point gap that the market opened with doesn’t mean that we’re out of the woods.
I would submit that on the contrary, we’re all deeeeeep in the woods all together now, and people are starting to realize that the sun is going to set before we find our way out again.
Asian markets open in just a few hours.
Peter Boockvar, Miller Tabak’s equity strategist, asks [...]:
“By not waiting a week [until the FOMC's scheduled January 29-30 meeting], it’s apparent that they responded to the overseas sell-offs and tried to bail out stock markets. . . . If we’re suffering from a hangover after a period of easy money and the very easy Greenspan Fed, why do we think easy money again is going to cure that? You don’t drink a lot to cure a hangover,” he says.
