As I have said before, it was only a matter of who showed signs of panic first – investors or the Fed. It happened almost simultaneously when it finally went down, but the call was for investors to make.

A number of things happened yesterday, but the big news was the emergency 3/4 point cut in interest rates by the Fed. Why did they finally move, and move so boldly? Because stock markets had been down around the world for two straight days, ours having been closed for MLK Day. Our markets showed signs that they would tumble in response, hence the cut.

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