Wall Street fecha semana sem rumo. Grandes tecnológicas pressionam

[Ulisses Pereira]

By James J. Cramer
06/20/2003 02:56 PM EDT



"The half-a-point, quarter-of-a-point dilemma isn't pure idle chatter. There might be too much money fund risk, too much talk of panic if they go a half-point.

I, of course, don't want to see anything. I want to see how all of the stimulus plays out, but I can tell from the Lehman Brothers and Bear Stearns calls as well as the papers that the Federal Reserve is saying "Look, we are still very concerned about consumer spending so we are going to do something."


I, on the other hand, believe the consumer is in OK shape and would be spending if there were only a couple of nice weekends to spend nationwide. That hasn't happened yet.

More important, the quarter-point isn't going to create more jobs or jobs security. Those are going to come from the financial markets being less panicked and companies being able to raise more money and, ultimately, from a sense that the big capacity takeouts in airlines, telecommunications and financials are finally done.

I keep coming back to the time stuff because we just started recovering not that long ago. I fear the "we are Japan" mantra and the psychological damage that comes from money funds making nothing more than I favor whatever marginal good comes from a cut of 50 basis points.

In other words, while I want nothing, 25 basis points won't hurt; could help. But 50? No thanks. Wrong message, wrong impact. "

(in www.realmoney.com)