SO DOES THE FED "HAPPY TALK" THE MARKET...ABOUT THE ECONOMY...
OR GO THE GLOOM AND DOOM ROUTE...?
CHANCES ARE THAT THE FED WILL USED THE USUAL SPLIT THE DIFFERENCE BULLSHIT APPROACH THAT THEY HAVE USED IN THE PAST...
ENOUGH GLOOM TO JUSTIFY THE RATE CUT...
BUT NOT SO MUCH AS TO SPOOK PEOPLE ABOUT THE ECONOMY...
I WOULD EXPECT A VERY SHORT STATEMENT...ON THE THEORY THAT THE LESS SAID THE BETTER...
IN FACT A TWO OR THREE SENTENCE FED STATEMENT IS POSSIBLE...
TOO MUCH DETAIL COULD SPOOK THE BOND MARKET...OR THE STOCK MARKET RESPECTIVELY...
THE LESS SAID THE BETTER...
THE FED MUST BE AWARE THAT THE "STRONG DOLLAR" IS REALLY A LIQUIDIATION PANIC ANOMALY...AND CAN NOT BE USED AS "PROOF" THAT IT'S OK TO PRINT MONEY WITH ABANDON....
RIGHT NOW THE DOOMSDAY SCENARIO IS THAT THE DOLLAR STARTS FALLING AND OIL AND GOLD RESUME THEIR RALLY WHICH WAS CUT SHORT BY THE LIQUIATION PANIC...IN SEPTEMBER...
REMEMBER NOTHING FUNADMENTALLY MACRO HAPPENED IN SEPTEMBER...WITH REGARD TO THE BALANCE OF TRADE, THE DEFICITS...
WE ARE TOLD THAT THE CREDIT MARKET COLLAPSED...?
BUT DID IT...? OR WAS IT SOMETHING ELSE... SOME OTHER MACRO FACTOR THAT WE ARE NOT BEING TOLD ABOUT AS YET...
FOR EXAMPLE SOME SAY THAT INTER-BANK LENDING NEVER CRASHED...IN FACT IT WAS AT A RECORD HIGH...!
SO WHAT'S UP WITH THAT...?
CLEARLY SOMETHING HAD TO BE DONE ABOUT THE OIL AND GOLD BUBBLE AS SUMMER
...WHICH REALLY HAD NOTHING TO DO WITH BLAMING SUB-PRIME INTER-CITY MORTGAGORS...!
WAS THE SO CALLED "CREDIT FREEZE UP" REALLY AN ATTEMPT TO STOP THE OIL AND GOLD TRADERS...IN THEIR TRACKS...
