It's a 25-Basis-Point Baby Boy!

Turning to other outside markets, gold and silver were up roughly 1%, but that action was meaningless, as the precious metals closed before the Fed "opened the envelope." The dollar had been quite weak across the board, but it bounced a bit after the Fed announcement. That said, the Canadian dollar ended up a full percent, with the euro up about 0.25%, and the yen down fractionally.

Policymakers, Heartbreakers: Well, now that we're through the rate cut, it seems to me that the market will hold its breath for (a) quarter's end, to see if the boys and girls want to paint the tape, and (b) the next rate cut. I cannot understand why the Fed, after having embarked on the mission of stoking the stock/bond market, didn't give them what they wanted, in the form of 50 basis points. But then again, it's the same group of lunatics that got us into this mess in the first place.

Mind you, I'm not disappointed that the Fed only cut 25. I am just somewhat surprised that they veered from the script they'd appeared to have set -- especially after all the hot air they've expended warning about the risks of "deflation." Obviously, Greenspan has raised the bar for himself, in terms of having to deliver on the economy. But then again, that had already been the case, whether folks wanted to come out and admit it or not.

Emerging-Market News: Meanwhile, turning back to the market's response, I don't put much "stock" in the market's action after an FOMC meeting. We've seen too many times in the past where whatever happened that day just turned out to be noise, and the real near-term direction only unfolded in the ensuing trading sessions. My suggestion is that we take all the market's action today with a little grain of salt and see what develops. I believe that the action in the next two days to a week and change will be very interesting in all the markets, and I intend to be on red alert.