Archived IMT (2008.09.25)

DOWNSIDE MARKET RISKS SOAR as GE suspends its buyback program and lowers its Q3 earnings. LIBOR Rates push up higher. Fed Chairman Bernankes economic testimony sounded off a clear focus on the downside economic risks away from the usual balanced focus on inflationary and downside risks. This further increases the ODDS OF A 50-bp INTERMEETING RATE CUT . The next FOMC meeting is 33 days away, which is far too long a period of time for the rapid deterioration in credit conditions such as rising LIBOR/TED rates, as well as negative corporate news such as this mornings GE news.