3 replies to this topic

[zedor]

Bernanke took the easy way out tuesday -- the reprecusions of which are now hitting. Had he not dropped rates the stock market would have done what the dollar is doing. The easy money policy of the past 7 years has now left no room to do anything. What is he going to do when the stock market starts dropping 10 % a day a few days in a row ? .

[selecto]

It was a gutsy move, considering this chart:

http://stockcharts.com/c-sc/sc?s=$USD&p=D&yr=1&mn=0&dy=0&i=p64112216498&r=8792.png

[humble1]

what is needed is a total of three 50/50's at the three meetings, the first having been done. the developing economic metrics will demand this. i think it may be on the table ... or may have been. this would get the FF rate to about a real rate of 1 1/2 and (importantly for the fed folks whose MAIN JOB is the keep THEIR jobs) make the fed blameless for the econ implosion which is now inevitable. BUT: the action in gold and the dollar and oil, between now and the next meeting, is THE focus, as you and others here correctly point out. so far, that response has been very, very clear. for years, we have heard blab about the fed being in a box. this time it is really so !

Edited by humble1, 20 September 2007 - 09:28 AM.

[SandStorm]

Probably the only good thing out the double-barrel rate cut is this crashing USD. Trash the USD; Force domestic consumption to retreat; Give foreigners reason to break the peg; Causing foreign demands to pick up; Viola - global imbalance reverses. It's all good for us for future years. In the mean time, watch fear sweep through stock market like a cat 5 hurricane.