We are living in remarkable times. History is being made every day in every way.

This afternoon, the US Federal Reserve cut the benchmark rate by .50% to 1%. Again. This is the second time they have cuts rates this low in our life time. The last historic occasion was in June 2003, when the Feds announced “emergency measures” in a "temporary" effort to jump start consumption following the 2001 shallow, short recession.

But that was then, and this is now. And the world economies are in a lot worse shape now compared with 2003. Back then we just had a stock market bubble and the after shocks of 9/11 to deal with. By the time the Fed cut to 1% in 2003, the economy had already pulled out of the 2001 recession. Today we are maybe half way through a 2 year long recession. Today the world is reeling from imploding real estate, a credit crunch and decimated financial markets. People are truly feeling this financial affront from all possible sides.

A .50% cut was what I expected at this point...   more »

Roubini this morning on Bloomberg reminding us that we are about half way through this likely 2 year US recession. I agree with his call on this. He believes stocks could get a lot cheaper yet. I also think that is likely. The trillion dollar question, is "how much cheaper?"

Roubini says S&P could fall another 30% before this cycle bottoms. Roubini is just giving his best educated guess here like the rest of us. But investors must have a plan for "what if the markets continue down". If you are just buying here or holding and hoping with no exit plan pre-defined, heaven help you. Buy and hold managers, brokers and planners won't be valuable to anyone. Unless Boomers change their investment approach this decade, they are going to need artificial limbs to hobble through their retirement on decimated funds.

See Roubini says S&P may fall 30% more.   more »