Prozac for Wall Street

Well we are only three weeks into the year and we are rapidly approaching my target levels on te downside. I must admit that I thought that we would have the usual January run up to my topside levels but this did not occur. Last nights 75 basis point cut in the Fed Fund rate will not help the markets at all and here is why: 1) The Fed does not set interest rates the banks do and they aint going to start lending to the already overstretched consumer again - What Sir, would you like another sub prime loan ton pay off your old one? 2) There is already too much liquidity in the system, look at the T-Bill rate at 2.5% 3) The opinion that the East will keep the global markets expanding is incorrect - last year the spend for consumers was as follows: US $9 trillion, China $1 trillion and India $600bn. The consumer is paramount and he cant draw on any more credit facilities unless his house price rockets again. This ain't going to happen. 4) What happens if you are one of the few who has been saving - you are being screwed to keep the market propped up. Who is the Fed working for: Wall Street Banks?? The market will continue to fall - don't try to catch the falling knife