The market closed down by 371 points on the Dow a day after the Fed cut interest rates. As we have reported here before, the Fed's actions are muted n the sense that the global economic system is integrated and there are alternatives for borrowers to access capital from other than a regulated financial institution.
The cut in the interest rates our models predicted, will have very little if any effect on economic activity. Exactly what can a 0.5% decrease in interest rates create in the market.
The Dow stocks traded down from the open which are multi-national companies which realize a large portion of their income from oversees sales where the theory is the interest rate cuts will drive the dollar down making exports cheaper, but for how long?