Will Bernanke blow it on Wed?

Discussion in 'Trading' started by turkeyneck, Jan 27, 2008.

  1. Why in the world would he cut a day before the meeting? He would look like such a amateur doing that.
     
    #21     Jan 28, 2008
  2. I don't even think it matters if he does a 75 cut. Market will just puke it back up a few days later. Path of least resistance is down.
     
    #22     Jan 28, 2008
  3. Kindly choose your topic: the economy or the state of your trading account.

    True, you can play either side and not care which direction the market moves so long as you are on the right side of it, insofar as your trading account is concerned. However, when you refer to the economy and the piggish nature of the consumer who keeps taking on more debt, let us not forget who has made excessive borrowing so irresistible with invitingly and artificially low interest rates. True, the drug addict is responsible for his own conduct. But the pusher plays more than just a spectator role.
     
    #23     Jan 28, 2008
  4. DHOHHI

    DHOHHI

    Re-read the topic. People who start these threads are clearly wanting some action due to their accounts suffering. Likely people who are mostly long. Suggesting Bernanke may be to blame makes no sense IMO.

    As far as cheap credit - I'm against it. Cutting rates isn't the solution. Many people are undisciplined as far as their spending. Many need to learn a lesson the hard way. Let them declare bankruptcy. Then make them pay for things they can actually afford with cash. Sometimes a tough painful lesson is the best medicine.
     
    #24     Jan 28, 2008
  5. Okay, we generally seem to be on the same side of the argument. Just that I don't think the Fed is blameless. As a result of boneheaded monetary policy, the Fed had a hand in not letting the economy do its thing: cycle. It has contributed to the bubbles and, therefore, to what followed. And here we go again...
     
    #25     Jan 28, 2008
  6. I think he doesn't want to cut, but he'll give the markets what they want - 50bps. He knows that if he doesn't, he'll get a massive sell off, and we can't have that, can we?

    Besides, inflation is under control!

    The guy is a complete jackass.
     
    #26     Jan 28, 2008
  7. An observation, if I may. At one time, it was believed that all forest fires were bad. However, we now know that forest fires play an important role in forest ecosystems, and that the suppression of all forest fires can be a dangerous practice that can lead to truly out of control blazes. Essentially, natural forest fires are a cyclical thing that need to be played out, at least in a controlled manner, to help maintain the forest's health and diversity. So, the challenge is one of managing forest fires rather than extinguishing all of them as a matter of course.

    And so it is with the Fed. Rather than let the market undergo its necessary cycles to help maintain its health and diversity, the Fed intervenes excessively and is setting the groundwork for a blaze that may well be substantially disproportionate and beyond the hope of intervention. The Fed continues to overplay its hand and that does not bode well for the future.
     
    #27     Jan 28, 2008
  8. sumosam

    sumosam

    The head of the ECB stated that he did not want to cut as it would look like fear mongering. Don't think the US can go it alone. Note the European bourses did not tank like Asian last night. Just my 2 cents
     
    #28     Jan 28, 2008