Thanks to Societe Generale's rogue trader who most likely caused foreign markets to fall much more than they should have on Monday, US equity markets have losses this year that are almost half that of many European and Asian indices. The US also got a surprise rate cut of 75 bps because of the panic that ensued in futures markets due to Monday's global declines. Go stocks (and watch out inflation)!
And wait -- we also got a rushed fiscal stimulus plan that the US government seemed way too happy about today. Did anyone else notice how happy Nancy Pelosi and Hank Paulson were at their press conference ("Checks will be in the mail shortly!") because they actually got something done? They were so proud of themselves, it almost seemed like they just finished rewriting the Constitution or something.
Below we highlight our trading range charts of the country indices that we presented in our prior post. As anyone can see, the declines have been swift and severe.
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