As for now, what they're calling "growth" is really inflation. It won't really matter until the recession is actually acknowledged... Considering the vested interest of the "ones we trust (but shouldn't) to tell us what the inflation rate is", don't hold your breath.
just imagine the pictures of Ben if he does not cut. something like shooting into innocent homeowners sitting in their beautiful gardens of their new homes. seriously, let's get back to reality and have a look at this week's data. why suddenly: ISM Mfg doesn't matter? ISM Services doesn't matter? Beige book doesn't matter? Retail sales doesn't matter? Auto sales doesn't matter? Productivity doesn't matter? Wholesale inventory doesn't matter? because that's how fed is going to look at it - as a one important number only (which says by the way that unemployment rate did not increase and is basically at its lows for this cycle. Not trying to downplay it but just to keep it in the perspective.
ever see the bit where they hang a rope out of the window.? If it 's wet, it is raining, etc.??? How can anyone be surprised at the job number? Do these morons ever leave the office??? By the way. Does anyone here know anyone that actual makes something? Just curious? I always think of the bus scene in "Boiler Room".
It is called a Moral Hazard. I think the Fed wants to teach investors a lesson this time. Also, I think they're right; too many deep pockets took uniformed risks.
Answers: 1. temporarliy, yes. ; 2. Yes. The downturn due to real estate collapse will be much worse then the mainstream press, the Fed, The Treasury, and of course Wall Street, will admit to. They always downplay these things because they don't want panic. Fact is, this will become, and we are just getting started, the worse such collapse in our lifetimes. And most of us, my self included, did not realize the depth and extent of the associated CDO crisis. The evidence for how bad things are below the surface is right their in front of our eyes in the form of all the emergency actions taken almost daily by the Fed to fight the fires. They just get one put out and another springs up. Further evidence is found in the fact that "Easy Al" is going around predicting recession and once again remarking on our "irrational exuberance." And who would know better then the man who created this mess? But that said, we all know how resilient and irrational the stock market can be. As in Barcelona, Bulls die hard, suffering a long and bloody demise until that final thrust of the rapier. Our ET crowd of "zero risk" bulls will certainly die the cruelest deaths of all, as they stagger bleeding toward ignominity. In the meantime, with an election coming up and all of that freshly printed money out there ready to be channeled to whichever side is most pro-Israel, we could sure use some more of that economic "growth" thing. So let'er rip Ben. Turn those presses loose. It would not surprise me to see new highs before we make new lows. Eventually though, the piper must be paid, be it in 2007, 2008, or 2009? I love being flat at the end of the day, but seeing your buying power evaporate overnight takes some of the thrill out of it..
Most of whats being measured as "earnings", just like growth, is actually money-pump inflation. (We're not acknowledging it as inflation because all the talking heads are in denial.)