THE NOTION BEING THAT HE "KNOWS SOMETHING" AND THE ECONOMY IS REALLY HEADING FOR TROUBLE...
CURIOUSLY THIS IS NOT A REALLY "DOWN" MARKET...THE MARKETS HAVE RALLIED WILDLY ALL YEAR...EVEN INTO THE SUMMER...AND NOW THEY ARE HORRIBLY OVER BOUGHT AND OVER PRICED...EVEN AS THE CREDIT BUBBLE BURSTS...
IF THE MARKETS REALLY WANTED A RATE CUT THEY WOULD CRASH A LITTLE FIRST... LIKE BACK IN THE GREENSPAN DAZE...
BUT THE GREENSPAN "PUT" HAS BEEN SO INSTITUTIONALIZED THAT NOW THE MARKET FEELS IT MUST ONLY EXPRESS "DISCOMFORT"... AND A RATE CUT WILL BE OFFERED... ASAP.
I CAN NOT THINK OF ANYTHING THAT COULD BE WORSE FOR THE MARKETS THAN A RATE CUT AT THIS POINT...
TO ADD MORE LIQUIDITY TO CURE A HYPER-LIQUIDITY ASSET AND CREDIT BUBBLE IS LIKE SOBERING UP A DRUNK WITH MORE BOOZE...!
THE REAL QUESTION IS NOT SAVING THE MARKET...BUT RATHER SAVING THE DOLLAR...
ANY ATTEMPT TO SAVE THE AVERAGES...NOW...WOULD BE A DISASTER FOR THE DOLLAR AND WOULD TANK THE MARKETS BIG TIME IN A FEW MONTHS AS THE NOTION OF AN INFLATIONARY FED WORKS THROUGH THE MARKET...
