Alstry Told You So
After the Fed cut rates to .25%, I made the following observation in the following blog:
Do you think the other nations of the world are going to sit back and let the world's reserve currency evaporate into oblivion??? Not a chance my Foolish friends.
Well the battle is beginning....from the WSJ tonight.......
Policy makers around the world marched ahead Wednesday with efforts to stimulate a withering global economy that so far has overwhelmed their attempts to contain the damage.
Central banks in Norway, the Czech Republic, Hong Kong, Saudi Arabia, Oman and Kuwait cut interest rates, a day after the Federal Reserve slashed its rates and promised more unconventional lending to battle the deepening U.S. downturn. Additional interest-rate reductions are becoming more likely in places such as Japan, the U.K. and the euro zone.
The interest-rate moves come in addition to potentially a trillion dollars of fiscal stimulus that is being lined up around the globe for 2009.
As rescue efforts mount, economists are struggling to explain why nothing so far has worked to avert a deep recession.
My guess is that the dollar regains strength very soon, oil continues down its downward march, and gold.....well that depends on people's emotions.....and I suck at predicting that.....
As far as economists struggling to explain why nothing is working.....it is because I have told you over and over and over and over....until we restructure....it will get worse.....MUCH WORSE!!!!!!
In all my years, to date I have never heard, seen or been told that providing alcohol to an alcoholic is a successful treatment plan.......for some reason economists never learned this in school. As an aside, have you ever noticed few economists have ever owned or operated a business.