It looks like we are getting another rate cut. The Fed's Kohn said this morning conditions have deteriorated. I guess it's better than cutting after saying we are not going to cut.
The dovish fed is at it again. The markets are going to pressure the helpless fed again. But just look at the Libor rate and you realize there are more problems out there. A rate cut is not going to help anyone except the big banks. We've got rate cuts to help the banks. We've got FHLBs loaning $51 billion to Countrywide and more to Citibank and Washington Mutual. Bailouts everywhere!!!
"The increased turbulence of recent weeks partly reversed some of the improvement in market functioning over the late part of September and in October," Mr. Kohn said in prepared remarks to the Council on Foreign Relations, adding that conditions in term markets "have deteriorated some in recent weeks."
"Should the elevated turbulence persist, it would increase the possibility of further tightening in financial conditions for households and businesses," Mr. Kohn added.
1 comment:
Last person holding a dollar denominated asset is a rotten egg !!
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