What would the Fed do?

Are the Patriots going to go 16-0? Are the Dolphins going to go 0-16? Who knows and who cares. What is on my mind is whether the Fed will cut rates and once again save us all from the inevitable future. Real short, the economy is bad and everybody is looking for a boost heading into the Fed meeting.

Most people are assuming that the Fed, who has already cut 75 basis points off the fed funds rate since September, will take off another 25. It will be interesting to watch what the reactions to the actions of the Fed will be. The US stock market is coming off some good rallies.

I personally think the rest of the 2007 calender year will be dependent on how the market reacts when the announcement is made by the Fed. If investors buy, then I think it will spark a good rally for the rest of the month. If the bears come back around, then I might just hide until the new year.