I find it very fascinating the entire market is absolutely gung ho that a rate cut WILL occur, mainly on the basis the economy is slowing and credit markets are falling into disarray again. So tell me guys -- am I the most naive person in the room thinking the markets are a little too gung ho on the possibilities of a rate cut when we have $100 oil, USDX at all time lows (hey look AUDUSD just hit .91 !!!), and plenty of good companies actually releasing GREAT earnings? The investment banks, banks, etc who've made a killing the past few years off this mortgage boom are finally giving back a portion or all of their windfall profits from the housing runup. Fine. And yes, according to the bears the consumer is somewhat tapped (well, not according to bestbuy or Microsoft earnings). Why doesn't the fed just wire the I-banks and banks funds as a goodwill and get this over with. We don't need rate cuts here. They'll cut and oil will hit $110 at this rate, USDX down another few percent, etc.. Imagine when China is tired of seeing their dollar assets deflate. Watch what happens when China strengthens their currency and people go shopping at Walmart ! Doesn't the fed realize the deep shit they'll be in if they cut rates here, and oil keeps up price into a season where crack spreads are high? ($5.00/gal gasoline here we come) $5.00 gasoline is probably like an effective 2%+ rate hike. It'll hurt the consumer (and the rest of the foodchain) much more than a lousy 25bp will help business. The whole thing honestly pisses me off now. I thought the 50bp cut was good to sooth the markets amidst a crisis. But continued acceleration of this loose money policy is the same as Bush committing more troops to Iraq; basically following bad decisions with a double down. Ie: going into Afghanistan to wipe Bin Laden and the Taliban in 01 was a move hard to argue with. Going into Iraq, not quite. Following with more rate cuts is like going into Iraq. Can't we just acknowledge I-banks are going to lose billions more, some might even go out of business (god forbid!!!), and take the pain on the rest of this housing boom deflation ? Someone please give me Ben Bernanke's email address. Either the market is reading Bernanke very very wrong, or we are all fucked.