Evan Soltas sent me the following Jim Cramer blog post, from the day I referred to in the previous post:
TheStreet.com’s Jim Cramer says the paltry half-point cut means we’re headed lower once again.
The European Central Bank needed to move in lock step with the Bank of England. It left us hanging with a half-point cut.
That means we’re sunk again.
The near-term tug of war just got uglier. Without the ECB cutting as much as the BOE, we have no reason to buy.
Last night, in a meeting with a bunch of hedge fund managers, there was uniform agreement that the market has to be bought with huge rate cuts, that you need to ignore the near-term Cisco (NASDAQ: CSCO) (Cramer’s Take) (to use the generic version of crummy earnings) and go with the Wells Fargo (NYSE: WFC) (Cramer’s Take) offering that will make it so lending will come again and demand be spurred.Without ECB and BOE in lock step with huge cuts, we go down. The persistent bid — made up of the room full of people I was with last night and their ilk — needed big cuts.They didn’t get one.
They will sell.
Cisco overshadows BOE because ECB didn’t go along.
So we’ll go lower slower than we would have otherwise.