Desperate Bernanke Panics
So wait, what's Inkjet Bennie's job again?
1) Monetary Policy (watching inflation)
2) Economic Policy
3) Supporting asset prices?
Today, taking his orders from dropping foreign markets, Inkjet Ben decided that asset bubbles need more air, and the Fed cut rates 75 bp.
He looks pretty desperate, doesn't he?
Why can't he just let the market work things out? I suspect he's only made things worse by telegraphing his fear and impotence to the entire world.
This will pass, but only if meddling bureaucrats like this one recognize that "stability" of markets doesn't mean supporting asset bubbles during down times and standing by during "irrational exuberance." It means letting them work things out on their own and maybe, just maybe, using regulatory tools on the way up to make sure that things don't get stupid.