News that Bernanke might go for 50 BP this week is not news here...
Bernanke and Greenspan are sort of like the good ole boy who wanted his dogs tail "bobbed"...
But he was afraid that cutting the tail off all at once would hurt the dog too much...
So he decided to cut it off one inch at a time!!
So too on interest rates...would it not be better to just GET IT OVER WITH...and go for the "appropriate" rate level NOW....
RATHER THAN THIS NUTTY 25 BP "BABY STEPS" APPROACH THAT HAS BEEN GOING ON FOR YEARS...!
I mean the market does have the mind of a two year old...but still the FED shouldn't be bound by the markets whining and crying...that's not what the FED's job description is...
JUST GO 50 AND SEE WHAT HAPPENS...!
LIKELY THE DOLLAR WILL SHOOT UP...OIL AND GOLD WILL PLUNGE...AND EVERYONE WILL SHOUT HOSANNAS...BECAUSE THE GROW-UPS ARE BACK IN CHARGE AT THE FED...
Also....if Bernanke is planning on another 25 BP next meeting...? Why not just do it now...and THEN PAUSE TO REFLECT ON THE DISMAL STATE OF THE WASHINGTON SITUATION...THEN simply explain to the American public the whats, whys and wherefores...
Who knows the American Public just might be smarter than they are given credit for!
