Complete 2 page APA formatted essay: Wild Ride Summary and Opinion.
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However, the article warns that the action may just be a temporary diversion from an inevitable bear market.
The bear market may be just around the corner. Many international markets are already in the bear market range and others are within a few percentage points of being off by 20 percent from their peaks last fall. The stop gap interest rate reduction may be too little too late in the face of other looming economic woes. The article reports that the credit market is in a risky position and could eventually seriously impede the banking systems ability to extend credit. The tight credit situation will eventually affect the markets and continue to pull them downward.
The article reports that the sub-prime mortgage problem is still having negative effects as housing prices are still plummeting and investment banks are looking at significant write-offs in the coming months. In addition, the global economy is showing signs of slowing and investors can no longer take advantage of de-coupling in foreign markets. These forces are working in concert with the falling confidence in the US dollar on the world market to loom as a growing threat to the markets.