FED PATIENT, MARKET NOT!

Greenspan may be patient, but the market is NOT!

JUST IMAGINE WHAT WILL HAPPEN WHEN THE FED KICKS RATES UP 1/4 PERCENT!

Clearly, the last year has been a little nuts on Wall Street. With Greenspan desperately tying to revive the Bubble.

AND, NOW THAT HE HAS? HE WANTS TO SLOW IT DOWN!

Not that he actually has done anything to slow it down, but the MERE POSSIBLITY that he "might" raise rates off their 45 year lows was enough to crash the markets.

CLEARLY, THE ONE PERCENT SOLUTION HAS BECOME TOXIC TO THE US AND THE GLOBAL ECONOMIES!

AND THAT, GENTLE READER, IS WHAT THE PUNDITS HAVE MISSED TODAY!

With the NAZZ up 50% and more, WHY DOES THE ECONOMY NEED ONE PERCENT RATES?

FOR MORE SPECULATION! WELL, THAT IS NOT A LEGIMATE FUNCTION FOR A CENTRAL BANK.

Indeed, the COLLAPSING DOLLAR may have been the REAL REASON for the Fed's action yesterday. Remember, the Japanese did indicate they could not defend the dollar forever! And, THE JAPANESE DEFENSE seemed to be the sine quo non for market speculators lately.

Additionally, if the Fed waits "till jobs comeback" the NAZZ could be obiting Neptune! And jobs might NEVER come back, despite THE NEW TECH BUBBLE!

AND, THE MARKET CONSECQUENCES OF FORCING THE "BOND CARRY TRADE" TO GO FOR 60 TO ZERO IN ONE MONTH--ARE DICEY AT BEST!

NET-NET THIS FED CHANGE WAS LOGICAL AND LONG, LONG OVERDUE!

The real question is not WHY NOW! But, Why did the Fed wait so long!

PERHAPS "LOVE IS BLIND."

AND, WE ALL KNOW HOW MUCH MR G LOVES HIS WALL STREET BUBBLES!



http://www.federalreserve.gov/boarddocs/press/monetary/2004/20040128/default.htm