I guess the fed was right?

D

dafong

with the shitty durable goods, consumer confidence, and home sales reports that came out this week, don't you reckon that bernanke knew what he was doing when he cut the rate by 50 basis points?
 
Yes, I don't hear any apologies from those that insulted the Fed heads right after the cut. The move seems justified now.
 
I wouldn´t be surprised to see the usual outcry on ET : "Manipulation at the expense of the American people!"

In effect he rescued exactly those noisy ones...
 
I still think he got it wrong and that he overplayed his hand. I didn't think that monetary policy was originally intended to pave every pothole in the road. The Fed is breeding undisciplined behavior.
 
Quote from dafong:

with the shitty durable goods, consumer confidence, and home sales reports that came out this week, don't you reckon that bernanke knew what he was doing when he cut the rate by 50 basis points?
More...

Actually, I trust the yield curve and the bond market a lot more than the Fed and it appears to be generally optimistic:

http://www.marketwatch.com/news/sto...x?guid={F4038786-554B-4D22-9CAC-E511B59BC802}

Great analytical paper on the y.c. for anyone int'd:

http://www.newyorkfed.org/research/current_issues/ci2-7.pdf

And, again, I think he lowered by 50 points to shore up the deficit...
 
It was a big mistake. The ideal to reflate a deflating bubble isn't winning; plus its really hard to do. We've already done it once, its virtually impossible to do it again. It just prolongs the pain.
 
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