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inmates in charge of the asylum

Recs

6

December 11, 2007 – Comments (3)

or "how billion-dollar crybabies dictate government economic policy"

The Fed, in weighing its move, should consider market expectations, says Stephen Stanley at RBS Greenwich Capital. The December federal-funds futures contract remained fully priced for a quarter-percentage-point cut, and showed about 40% odds for a half-percentage point cut. "They've already signaled a cut," he said. "They can't not ease."

http://online.wsj.com/article/SB119725543833319010.html?mod=hps_us_whats_news

3 Comments – Post Your Own

#1) On December 11, 2007 at 3:03 PM, Persuter (42.07) wrote:

Weeeeeell, I dunno... Who should dictate monetary policy? The market, or a bunch of bank presidents in the proverbial smoke-filled room? I should at least expect a good reason why the Fed would go against market sentiment.

 

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#2) On December 11, 2007 at 5:53 PM, abitare (43.81) wrote:

I do not blame them for being upset. Do you know how much it costs to send your kids to private school? Or to pay for maintenance on your mansion, beach houses, mistresses' apartment etc? Do not get me started on the costs to maintain the yacht and Gulf Stream....Helicopter Ben better remember who he works for and what is expect from him!

HINT: Nickname: HELICOPTER

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#3) On December 11, 2007 at 6:06 PM, TMFBent (99.80) wrote:

Who should dictate monetary policy? The market...

Oh, definitely the market. Then we could have mandated, 0% interest rates and lend trillions at that rate on the taxpayer dime. Sign me up for that one.

I should at least expect a good reason why the Fed would go against market sentiment.

Inflation? We need a recession to reset asset prices to real levels? To get rid of the moral hazard and expense of socialized losses? I could go on all day with reasons the Fed should give Wall Street the moodza, do the right thing, and raise rates...

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