They are clones. They believe in supporting the market with massive rate cuts and give a rat's ass about inflation. buy gold, oil, any commodity. The commodity boom is in full force.
Massive rate cuts? Please show us where there have been MASSIVE rate cuts over the last several months??? If anything, Bernanke & Company have been very slow to the issue of "easing" because they ARE in fact concerned about inflation. The fixed-income market has lead Bernanke to lower rates; not the other way around. Again, you need to take a review course in "Money & Capital Markets".
100 bps over 3 Fed meetings is not slow. And with rates at 4.25% and falling, soon the US rates will be lower than Europe's, and with a much weaker currency. Anybody have an incentive to buy US Treasuries with that kind of deal?
The FIXED-INCOME MARKET lead rates lower; not the Fed. There's a big difference and you obviously need a much better understanding in how the markets work in order to comprehend this. If the FED was aggressively trying to inject liquidity PERMANENTLY into the system, they would be conducting COUPON-PASSES. Just because the Fed Funds rate is lower, doesn't mean that banks are out there aggressively lending money. Get a clue.
maybe the federal reserve is staying put with interest rates, thats what the market is showing at this time. Up 90 now up only 8 points while nearly every index is now down AGAIN!!!!! :eek: :eek: :eek:
The market was set up for a sell the news reaction to Bernanke's mumblings. The market wanted an intermeeting rate cut, they just got dove talk, and are clearly not happy with just that. But I expect Ben to send a sucker punch to the shorts with an intermeeting cut if we happen to take out support at 1380 on the S&P. They are chartists after all.