global central banks in a joint effort to ease monetary flow! wed 10/08/2008 10:19am

as the east coast traders woke up this morning after most went to sleep hours earlier watching the asian markets tumble (again) and spx futures as low as -43.30, global central banks in at least 7 major markets cut their short term rates.  the us fomc cut the fed funds to 1.50% from 2.00% and discount rate to 1.75% from 2.25%.

spx futures jumped to 1043.20 +37.40 (7:04am), then fell to as much as 969 -36.80 (9:12am)

fears are for nationalization of banks, even at major markets like the uk and germany.

this is the talk as iceland has nationalized their banks.

spx has yet to show its hand after almost an hour of trading, where it's going and whether 50bp can halt the spx free fall.

central banks can ease all they want, it's still up to banks to lend.

the fear that banks get eat up by their government makes sense if banks continue its stance.

hence the market concerns.

paul