Don't be naive, the only way to retire the national debt is to let US$ par with peso or yen. LOL The worst is yet to come. Go study Italian economic history; it might shed some light on what to expect.
Its only sad because its taken this long for people to realize that the economy is bad. The first time the fed lowered interest rates everyone should have read the writing on the wall, but we get these stupid bounces while Goldman and the boys unload into the retail CNBC sheep who actually think the first few fed moves are a sign to buy. Sheep to the slaughter. If and when The cycle turns and the fed can raise interest rates they will panic sell as well, we've seen it all before, just in the last 10 years and yet the sheep still chase their CNBC shepard. Holla Hedgefundtrader8475 and stocktrader_3
The most curious question right now is what will the fed do. They have been reacting to every single recent market shock by either a rate cut or a sudden injection of liquidity into the markets. The market tanking 3% today certainly qualifies for a reaction if we base the "fed panic trigger" off of the recent past. So what will they do? It is hard to say. It seems that as they have now further and further exposed their own balance sheet and also the dollar with the current rates that any move they make could be dangerous. They have backed themselves into a tight corner, it will be interesting to see how this plays out and who they make into the scapegoat.
I don't want to be a sourpuss but NO WAY FED IS DONE DONE DONE DONE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! I hope I am wrong, and they come to the rescue but I do not think I am Dollar is soooooooooo weeeeeeeek it is what driving up OIL and everythind else peged to it THERE HANDS ARE TIED Q: Hey ben will you help out A: Sorry I would if I could but I cant Q: But why Ben A: I have done to much already and the cycle has to play out the way it always does END:
Kudlow actually wants fed hikes. Can you believe it? Even people as obtuse as Kudlow understand Bernanke is ruining the U.S. economy, stoking inflation, and doing nothing for financials with his idiotic fed funds rate. A move toward a strong dollar would truly do some good. Bernanke is truly one crazy bastard.
Watching it now, he wants rate cuts to prop the dollar higher.... Too funny, he was looking for major rate cuts only a few months ago. Im also laughing because Arthur Laffer is on kudlow as usual and he seems less bullish then I have ever seen him before, pretty funny because everytime he is on kudlow he is more bullish than ever, he has been way wrong.
The weak dollar, inflation, and the price of crude are only symptoms. Bringing down the price of crude, will bring temporary euphoria, but it won't solve the fundamental problem which is fiscal, not monetary. If we want a permanent solution we will need to drastically reduce spending on wasting assets (bombs), and assets with poor returns (prisons) and start investing (education, infrastructure, health).