Tuesday, March 18, 2008
On the ABC Evening News earlier this evening, Greg McBride of Bankrate.com was asked about today's Fed rate cut as it relates to the choice of fighting the credit crisis or fighting inflation.
He immediately thought about firemen:
That's the fire they have to fight right now. When you're trying to fight the fire, you're not worried about water damage.Well, given the transition from stock market bubble to housing bubble, that much is clear about how the Federal Reserve wields its hoses - they're not worried about water damage.
The more important question is, how could we possibly have this big a fire after hosing down the financial system with so much water over the last seven years?