Give Them 50 BP, They Want The Whole Thing

Investors were clearly upset with today's global 50 bp rate cut. They wanted more.

A round of coordinated interest rate cuts failed to calm global stock markets, fueling speculation that governments will have to do even more to tackle the credit crisis.

"I hope this is enough but I wouldn't be 100 percent sure," said Rainer Singer, a macroeconomic analyst at Erste Bank in Vienna.

From Europe to the US, the uncertainty was palpable in the wake of rate cuts by the central banks in the US, European Union, Switzerland, Canada, Sweden, England and others.

The cuts followed a spate of stunning moves this week to shore up financial institutions and add liquidity to frozen credit markets.

On Wednesday, Britain announced a $87-billion plan to partially nationalize its banking sector.

In separate moves Monday and Tuesday, the Federal Reserve said it would pay interest on bank deposits and support the commercial paper market.

""I just think that there's a sense that they keep running out of bullets," said Jim Paulson of Wells Capital Management.

Dow is digging itself out of today's hole again back to even, it was down over 250 at one point but is back in the plus column as of 1:15 PM or so.