Ai yi yi… Last Friday, it looked like what was going to happen to Nigeria was already happening to the US stock market.
Nigeria is our neighbor’s prize bull. He’s going to be slaughtered, because he’s getting old and is no longer earning his keep.
This bull market on Wall Street, such as it is, is getting old too. And yesterday, the butchers were sharpening their knives.
The Dow fell hard – down 362 points. Why?
Commentators said investors were disappointed with the measly quarter point rate cut delivered by the Bernanke Fed on Wednesday. What? How could that be? Nine out of ten economists saw it coming. Why would investors have such surprised looks on their faces?
Maybe it is because the Fed signalled that there were not a lot more rate cuts where this one came from. But who would believe that?
Nah, dear reader, the explanations don’t make much sense. But why bother looking for a reason? All bulls get slaughtered – sooner or later. That’s just the way it works.
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