EMERGENCY RATE CUT CAN'T STOP CRASH

Update: Crazy Day In The Market!

Update: Nope, global cuts not working.

Bloomberg: The Standard & Poor’s 500 Index lost 16.86 points, or 1.7 per cent, to 979.37 at 12:21 p.m. in New York. The Dow Jones Industrial Average slid 175.94, or 1.9 per cent, to 9,271.17. The Nasdaq Composite Index decreased 1.5 per cent to 1,727.86. Four stocks fell for each that rose on the New York Stock Exchange.

…The S&P 500’s six-day stretch of declines is the longest since April 2002. The gauge’s 15 per cent slide from Sept. 30 through yesterday was its third-steepest on record, according to Bespoke Investment Group LLC, a Harrison, New York-based research firm. The bigger declines from five straight losses occurred in 1932.

…The MSCI World Index of 23 developed markets extended its five-day retreat to more than 14 per cent, the worst since the market crash of 1987.

The dollar weakened and 10-year Treasury yields exceeded two-year notes by the most since 2004, signaling investors remain cautious about economic prospects.

Update: And just how did the markets react to said cut?

AP: The Dow Jones industrials, already down 875 points this week, fell another 150, and all the major indexes were down sharply.

The Fed’s action will reduce borrowing costs almost immediately for U.S. bank customers whose home equity and other floating-rate loans are tied to the prime interest rate. Bank of America, Wells Fargo and other banks cut their prime rate by half a point to 4.5 per cent after the Fed announcement.

…European indexes, which were down about 5 per cent before the rate cut, pared only some of their losses. In Britain, the FTSE-100 fell 4.24 per cent, Germany’s DAX dropped 4.98 per cent, and France’s CAC-40 dropped 4.58 per cent.

In Asia, Japan’s Nikkei 225 closed 9.38 per cent lower and Hong Kong’s Hang Seng tumbled 8.17 per cent hours before the rate cuts were announced; their declines showed the extent of the worldwide gloom.

Earlier: In the most coordinated global movement since never, the Fed, the European Central Bank, and a bunch of other central banks all cut interest rates. That must have been some conference call.

Bloomberg: The Fed, ECB, Bank of England, Bank of Canada and Sweden’s Riksbank each cut their benchmark rates by half a percentage point. The Bank of Japan, which didn’t participate in the move, said it supported the action. Switzerland also took part. Separately, China’s central bank lowered its key one-year lending rate by 0.27 percentage point.

“The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,” according to a joint statement by the central banks. “Some easing of global monetary conditions is therefore warranted.”

The Fed’s decision brought its benchmark rate to 1.5 per cent. The ECB’s main rate is now 3.75 per cent; Canada’s fell to 2.5 per cent; the U.K.’s rate dropped to 4.5 per cent; and Sweden’s rate declined to 4.25 per cent. China cut interest rates for the second time in three weeks, reducing the main rate to 6.93 per cent.

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