Wednesday, April 30, 2008
My stomach hurts from laughing so hard at Bob Pisani on CNBC during his impassioned pre-announcement prognostication before today's Fed rate cut action and the traditional reading of the policy statement.
As expected, money was made cheaper as the Federal Reserve lowered short-term interest rates another quarter-point to a freakishly low two percent, further punishing savers and goading would-be speculators to borrow money and buy something.
Please! For the good of the country!
Here are the last two policy statements side by side. Did anything really change?
The stock market has been anticipating that they're going to drive a spike into the heart of a trade that is already long in the tooth, that is, long commodities and, short the dollar. By essentially implying, "Were done", traders are hoping that the dollar will rally, commodities will move down, and even some are really optimistic, hoping that maybe we'll get some Federal Banks buying dollars in the next...He was interrupted by someone reading the Fed announcement before he could offer up more encouragement for the stock market.
His voice actually quivered when he said "drive a spike into the heart". Since you could only see him from the chest up, it was impossible to tell if there were any other bodily changes.