i tell you what, at leas this makes the FOMC meeting much more easy to trade. Now that the discount rate has been cut to 25 basis points above the fed funds rate, you know come FOMC that the discount rate will still be 25 above the fed funds rate. I was scard of the situation if the fed funds rate was cute 50 basisi points and i short the market, but the discount rate was cut 100 basis points and the markets jammed up. now it will be much more clear to trade the announcement
Why replace Bernanke -- he's doing the best he can give the pile of excrement he inherited. 99% of the negative comments directed at Bernanke actually belong to Greenspan. There is no excuse for this credit crisis to exist... Lax loan standards -- blame Bush administration, failure to regulate bank and mortgage lending standards Lack of transparency of CDOs -- blame Bush administration for not creating and enforcing transparency regulations
Yes, such a move would be incredibly complicated though... In a Cournott Nash universe they could pull it off... everyone would just do what's best for everyone as a group... collaboration, wonderfull thing. However, you only need one country to go Bertrand on the US... and they would take the whole pie.