This doesn't bode well for a rate cut on the 18th:
"Fed's Yellen warns rate cut may not happen
San Francisco Fed president says rate policy is not intended to bail out investors.
September 10 2007: 2:03 PM EDT
NEW YORK (AP) -- San Francisco Fed President Janet Yellen said Monday that while market turmoil has the potential to hurt the economy, rate policy should not bail out investors.
The speech, which helped send major gauges lower in early afternoon trade, followed comments from Atlanta Fed President Dennis Lockhart, who said investors should consider Friday's unemployment report alongside a mostly strong batch of retail sales reports seen recently. Over the weekend, Philadelphia Fed President Charles Plosser said that the Fed doesn't make rate decisions based on any one number."
IMO, The market has already priced in a 1/4% cut. If we don't get it... there may be trouble ahead. If we do get a rate cut, there won't be any upside left anyway. We could have a major market SNAFU. I think I'm going to step to the sidelines before Friday, and then wait and see what comes to pass. I can't see being invested in the US economy with a declining growth now at under 2%, while China is running at projections of 5 - 10% for 2008. In either case, I think TKO should weather any serious downturn fairly well if it occurs.
I don't want to sound like chicken little. Is anyone else concerned?
