The issue of the day is will the FED throw Wall Street a bone and say that they are "worried" about the slowing economy...?
This would imply that the FED thinks the economy is really slowing...which would open a whole 'nuther can of worms... Or that the FED "worried about" the systemic risks in the sub-prime debacle now unfolding...
THIS COULD CRASH THE MARKETS AND THE DOLLAR IF TRUE...BY VALIDATING THE SYSTEMIC RISK THEORY ABOUT THE ECONOMY...
My hunch is that the FED statement will revert to the old SHORT FORM and say something like:
"We will examine all incoming data and respond accordingly; taking into account the economy as a whole..."
The FED has to be very careful tomorrow because The Street's "spinsters" will be working overtime... If they throw a bone to Wall Street...the currency markets could crash...
Indeed the dollar is in a slow-motion crash right now against the Euro!
SO ANY HINT OF LOWER RATES COULD PUT THE DOLLAR UNDER EVEN MORE PRESSURE...
WHICH WOULD EVENTUALLY FEED INTO OIL AND GOLD PRICES... BECAUSE THE WEAKER DOLLAR, MEANS HIGHER GOLD OR OIL...(AFTER THE FED'S SHILLS ARE DONE BASHING COMMODITIES...WHICH IS A LOSING GAME.)
MY ADVISE: THE BEST WAY TO "STAND PAT" IS TO SAY AS LITTLE AS POSSIBLE...
EVERY EXTRA WORD IS FODDER FOR THE SPINSTERS...PRO AND CON...
WHY TAKE A CHANCE...?
CLAM UP!
Check this page for the "real reading" of the FED statement...starting Tomorrow...at about 2:30 eastern time....
