the fed strategy revealed: but will it "work" ?
#1
Posted 14 August 2007 - 10:18 AM
#2
Posted 14 August 2007 - 10:22 AM
i thought we would have a rate cut early this week and predicted that here, last week. it is clear now i was wrong and why i was wrong and i think i/we have learned a lot from that, which all of you surely have sniffed out by now:
the fed is not going to target the economy and the whole financial system with a rate cut; it believes the problem is contained within a relative few pockets of risk re-pricing. it is very wrong, imho, but that does not matter. what matters is what IS. and what IS is that the fed is waaaay behind the curve on the economy and that will bring it HUGE criticism down the line and a loss of confidence in the monetary and financial system, with the ultimate resignation of bernanke.
there is really not a hell of a lot it can do about the run on funds and the incipient run on banks, but who in the soon-to-be maddening crowd will accept that ?
p.s. greenspan knew when to get out of dodge !
If they oust Bernanke and bring back Greenspan from retirement, wouldn't that light a match under this market.
Remember this day, men, for it will be yours for all time.
#3
Posted 14 August 2007 - 10:30 AM
#4
Posted 14 August 2007 - 10:34 AM
#5
Posted 14 August 2007 - 10:58 AM
#6
Posted 14 August 2007 - 02:34 PM