Tuesday, March 18, 2008
Boy, they sure whine a lot on CNBC - you'd think short-term interest rates were like 10 or 12 percent the way they were crying when they didn't get the full one-point cut. Next time, the Fed should just cut by 2.25 points and go directly to zero and just get it over with.
That's the real question for equity markets - what happens when we get to zero?
Here are the last two policy statements from Ben and the boys - it was near impossible to find the one from January since they've been doing press releases just about every day now. When they start doing press releases twice a day, then you'll know we're really in trouble.
It was about a complete re-write from last time and there were two dissenting votes in Richard Fisher and Charles Plosser who preferred to at least put up some sort of facade about "fighting inflation" and/or not throwing the nation's currency "under the bus".
Haven't they been expecting "inflation to moderate in the coming quarters" for about the last two years now?