To cut or not to cut?
The discussion topic de jour is the probability of another 0.25% cut. Taking the risk of being held accountable for the wrong prediction, I will offer my take: no cut this time. The reasons are: a) inflationary pressures are very real and b) housing is still in sufficiently good shape. This prediction comes with a disclaimer: I'm assuming that Bernanke is not overwhelmed with irrational fear like most housing bears in Caps. This disclaimer is necessary because Bernanke will not hesitate to drop the rates to minus thirty percent if he feels that this is what's necessary to rescue homeowners from possible depreciation of their valuable asset.