I have to disagree with Cramer's view that the fate of this market is dependent on the Fed. Even if it does cut rates, that is not going to stop the problems that are already taking hold. The Fed might be a band-aid, but the market is going to have to work through these issues on its own. In fact, I think if the Fed rushes in to do something right away, it may spook investors and cause even more trouble for the market.
Just weeks ago, Cramer was saying subprime was a well-contained issue and that we should be buying stuff like Washington Mutual (WM - commentary - Cramer's Take). Now we need the Fed to ride to the risk. Just as things weren't that rosy two weeks ago, they aren't that horrible now.
Looking to the Fed to bail out the stock market is not going to help us in the least. Focus on protecting your capital, and don't expend emotion over what the Fed may or may not do. We got problems regardless.
No positions.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Bear Stearns Sounds Bearish 8/3/2007 2:28 PM EDT The brokerage isn't sounding too upbeat on a conference call; that's adding some selling pressure here.
Rev Shark Blog Covered My Index Shorts 8/3/2007 12:21 PM EDT I'll let you optimists see what you can do. The Fed is up next week.
James "Rev Shark" De Porre is the founder and CEO of Shark Asset Management, an SEC-registered investment advisory firm. He also operates sharkinvesting.com, an interactive online community that serves and educates active investors. De Porre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children.Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here to send him an email.
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