The Infusion

How can the Federal Reserve prop up an industry for a 5% loss after a 25% gain over the past year? The Federal Reserve just helped extremely wealthy people in that work on the Street keep the dream of a bull market alive.

How can the Federal Reserve lower interest rates after it said that it wouldn't lower interest rates? The Fed controls interest rates not by attaching a number to lending, but by insuring the money supply is at the correct level needed to achieve a particular interest rate. They increased the money supply, which effectively lowered the interest rates.

Is the Fed worrried about inflation, really worried about inflation? The stock market is inflated, and the infusion of cash will further inflate the stock market.

Watch what the Fed does, not what the Fed says. The Fed is worried about the big time investors packing up their toys and going to other markets.

Stocks should rally for the next week.

The major question now is: has the market factored all credit worries into the value of their stocks? Look at the market since the first sign on Feburary 28th, I would say the market has some more factoring to do.