Long Run Expectations After So Many Years of Doubt

by Jeffrey P. Snider
Alhambra Partners

On Wednesday, October 8, 2008, the FOMC voted for an emergency 50 bps cut in the federal funds rate, bringing it down to 1.50%. The day prior, the Fed announced that it would be buying short-term debt from businesses after suggesting the day before that it would fund up to $300 billion for “bad” assets. The Friday before that, Congress had passed TARP. With so much happening, stocks were all over the place; the Dow up nearly 200 points during that Wednesday trading but also down as much as 252. In just one week, DJIA was some 1,600 points lower.

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