Click on the post for the story in Yahoo on the action of the Asian stock exchanges today.
The Federal Reserve acted today and lowered one rate and approved the sale of Bear Stearns to JP Morgan.
The Federal Reserve will also be meeting on Tuesday and is expected to lower rates at that meeting also. This brings up an interesting theory on the effect of fragmented "earnings announcements" for good and bad news and the effect of a fragmented sequence of "pre announcement" and subsequent "announcement." Many Wall Street firms do this.
There was a research paper by a professor at Notre Dame that I will try to find on Monday, but in summary, for good times, when there is a pre announcement and announcement, the result is better and bigger of a market bounce. The problem. When there is bad news, the bounce down is bigger too. Hence the Observer rule-----When there is bad news, deliver it all at once.
Thus you can see the problem. The Federal Reserve acted today, and has a blank day between now and their normal meeting on Tuesday. We will just wait and see whether that professors theory holds true.
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