{"id":199274,"date":"2007-08-17T05:16:00","date_gmt":"2007-08-17T10:16:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/08\/17\/more-on-yesterdays-stock-meltdown\/"},"modified":"2007-08-17T05:16:00","modified_gmt":"2007-08-17T10:16:00","slug":"more-on-yesterdays-stock-meltdown","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/08\/17\/more-on-yesterdays-stock-meltdown\/","title":{"rendered":"More on Yesterday&#8217;s Stock Meltdown"},"content":{"rendered":"<p>I commented on it briefly, and the stocks recovered, the <strike>Murdoch<\/strike> Dow ending down only 15 points, after being down more than 300 points.<\/p>\n<p>Well, now I know why: <a href=\"http:\/\/talkingpointsmemo.com\/news\/2007\/08\/fed_cuts_discount_rate.php\">the Fed cut the discount rate by 50 basis points<\/a>.  An surprise half a percent rate cut has a way of getting people to buy stocks.<\/p>\n<p>I don&#8217;t think that it will mean much in the long term.  As  <a href=\"http:\/\/www.rgemonitor.com\/blog\/roubini\/210984\">Nouriel Roubini says<\/a>, &#8220;<span style=\"font-style: italic;\">Given the serious <span style=\"font-weight: bold;\">insolvency<\/span> &#8211; rather than just <span style=\"font-weight: bold;\">illiquidity<\/span>&#8211;  among many economic agents (many mortgage-burdened households, dozens of mortgage lenders, homebuilders, some hedge funds and financial institutions, some distressed corporates) a formal 25bps cut will not make much of the difference as you cannot solve an insolvency problem by throwing liquidity at it.<\/span>&#8220;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I commented on it briefly, and the stocks recovered, the Murdoch Dow ending down only 15 points, after being down more than 300 points. Well, now I know why: the Fed cut the discount rate by 50 basis points. An surprise half a percent rate cut has a way of getting people to buy stocks. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,973,1265],"tags":[],"class_list":["post-199274","post","type-post","status-publish","format-standard","hentry","category-bubble","category-economy","category-housing-crash"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199274"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=199274"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199274\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=199274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=199274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=199274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}