So, quarter point, half point or nothing at all?
If Mr G asked me about how to raise rates: I'D SAY GO FOR HALF POINT INCREASES!
Why? Well, lets just get it over with as quickly as possible.
If G goes the baby steps route, we will have to listen to the mindless drivel of the pundits for months and months. The insane praddle from Kudlow and Cramer alone would be unnerving.
So, it kinda reminds me of the guy who wanted his dog's tail "bobed," or shortened. He thought it would hurt the dog too much to cut the tail off all at once.
So, he decided to cut the tail off one inch at a time!
Besides the market is already in PANIC MODE! With all of the hedge funds heading for the exits at the same time.
On the issue of derivitives, the QUOTE OF THE DAY is in today's WSJ:
RE: Those banks that are selling credit derivatives to "hedge" their books? One pundit says:
IT'S LIKE BUYING INSURANCE ON THE TITANIC FROM SOMEONE ON THE TITANIC!
LOL!.
I wish I had said that! But wait, I think I just did!
THIS NOTION THAT "SOPHISTICATED" DERIVATIVES WILL "PROTECT US" FROM A CRASH, THIS TIME AROUND; BY, AS MR. G LIKES TO SAY, "SPREADING THE RISKS GLOBALLY;"
SORT OF REMINDS ME OF THE FALLACY OF "PORTFOLIO INSURANCE" THAT WAS COMMON BEFORE THE 1987 CRASH!
YEA, IT'S KINDA LIKE THAT ISN'T IT?
OLD WINE IN NEW BOTTLES.......VERY COMMON ON WALL STREET
