And another cliché dies a well deserved death . . .
"In 2001, stocks kept falling even as the Fed cut interest rates heavily. The stock market recovered briefly after the Sept. 11 attacks, but fell to new lows in 2002. This time, the problems are very different, but they once again appear to be too numerous and too diverse. Since last summer, every stock rebound has proved temporary.
Investors are coming to the realization that, despite all the Fed’s efforts, the combination of deteriorating home prices, a beleaguered consumer and rising oil prices is going to bedevil the economy, stock prices and banks for months to come. That is one reason the recent selling has been so persistent."
Are the Hunters Low On Magic Bullets?
Investors Are Grappling With the Fear That Regulators Can’t Slay This Bear
WSJ July 14, 2008