Lower Rates, Release More Money, and Put the Lotion in the Basket

Hey America, feeling like you're being tortured, stuck in a well and looking up at a guy that is telling you to keep your money in your stocks and 401K otherwise you'll get the hose?  World banks are lowering rates, countless billions are being released to 'fix the credit plug', while you keep putting on the lotion.  It does this whenever it is told.

This is good news but damn if it doesn't smell of desperation of the world powers trying to fix our precious DOW from falling another 1,000 points. 

Central Banks Coordinate Global Cut in Interest Rates

SOURCE: http://www.nytimes.com/2008/10/09/business/09fed.html?em

Central banks around the world cut short-term interest rates by up to half a percent on Wednesday after investors across Asia and Europe unleashed waves of sell orders onto already depressed stock exchanges.

The Fed said in a statement that, because of weakening economic activity, it had cut the Federal funds target rate by half a percentage point, to 1.5 percent. It also cut its discount rate by the same amount. The vote was unanimous.

The European Central Bank cuts its benchmark rate to 3.75 percent, from 4.25 percent.

The moves had some initial effect on stock markets. European markets pared their heavy losses after the announcement, only to fall again. On Wall Street, investors showed little sense of direction.

The Dow Jones industrials lurched from a 200-point drop at the open to a 200-point increase just 45 minutes later. The Dow was slightly lower after 10:30 a.m., but continued to fluctuate widely.

Happy Investing today Masters, and avoid the Hose.