Wednesday, January 23, 2008

Did The Fed Cater to Wall Street

Do I think anyone on the Federal Open Market Committee said "Look these losses in the stock market are unacceptable we need to move" - no I don't.

Was there concern that widespread panic was ensuing that would result in a capital market freezing up - likely. Moreover, it was a sign that market participants were significantly increasing the likelihood of a major financial institution failing, this concerns the Fed deeply.

Look, I was shocked at the move and I am not certain that it was the right thing. Only hindsight can tell. However, we had started to get conclusive data that the US was slipping into recession. Because credit quality is already slipping a US recession is likely to be self-reinforcing.

That is, high unemployment leads to more foreclosures which leads to less lending which leads to higher unemployment.

So there was definitely a need to act. Last week I was even open to 75bps at the Jan 30 meeting. My biggest concern was spooking the market. But, the market was already spooked, so no loss there. So I believe the cut was designed to stem the recession. The collapse in equity markets was a sign that the recession was worsening and could itself contribute to the recession if it resulted in less spending or lending.

However, that being said the members of the FOMC are human. It was hard to watch the entire world selling off and not do something. I mean you could see that markets tumble literally as the world turned. As soon as daylight hit a region, it was in the red.


As for the ECB's tough talk. Number one, they do not have a dual mandate. Technically, they are responsible only for managing inflation not unemployment. However, I also think they are somewhat in denial. We have seen this before. We saw Japanese central bankers in the early 90s in denial about how bad it could get.

What we are looking at are severe downside risks and now it the best time to stop them. If a Japan type scenario is on deck for the US, this would be the time to prevent it. So while the move shocked me, I understand it.

I am sure Bernanke does not want to leave his post wondering if he stood by while the same forces that engulfed Japan, take down the US. If that means that he has to risk his rep now, I am guessing he says, so be it.

17 comments:

Anonymous said...

I am able to make link exchange with HIGH pr pages on related keywords like [url=http://www.usainstantpayday.com]bad credit loans[/url] and other financial keywords.
My web page is www.usainstantpayday.com

If your page is important contact me.
please only good pages, wih PR>2 and related to financial keywords
Thanks
sumscupsbom

Anonymous said...

It's so easy to choose high quality [url=http://www.euroreplicawatches.com/]replica watches[/url] online: [url=http://www.euroreplicawatches.com/mens-swiss-watches-rolex/]Rolex replica[/url], [url=http://www.euroreplicawatches.com/mens-swiss-watches-breitling/]Breitling replica[/url], Chanel replica or any other watch from the widest variety of models and brands.

Anonymous said...

cure hemorrhoids -
cyber link pro -
dl guard -
driver checker -
driver robot -
drop shipping wholesalers -
earth4energy -
earth 4 energy -
easy backup wizard -
easy click mate -
easy photo biz -
eatstopeat -
eat stop eat -
epinoisis -
error fix -
error killer -
error smart -
evidence nuker -
fap turbo -
fatburningfurnace -
fat burning furnace -
fatloss4idiots -
fat loss 4 idiots -
final uninstaller -
fitnessmodelprogram -
fitness model program -
fit yummy yummy -
flattenyourabs -
flatten your abs -
flat to fab -
governmentregistry -
government registry -
heartburn no more -
hippo jaw -

Anonymous said...

homemadeenergy -
home made energy -
honest riches -
hot video squeeze templates -
instant website creation -
jump manual -
keyword research pro -
linden method -
malware removal bot -
maternityacupressure -
maternity acupressure -
meet your sweet -
micro niche finder -
musclegainingsecrets -
muscle gaining secrets -
muscle gain truth -
my traffic strategy -
nasty dirty money -
negative calorie diet -
no adware -
pc optimizer pro -
perfect uninstaller -
pergola plans -
pick the gender of your bady -
plr ebook club -
pregnancy without pounds -
profit lance -
publicrecordspro -
public records pro -
questions for couples -
quit smoking today -
ready made review sites -
reg genie -
registry easy -

Anonymous said...

registry easy download -
registry winner -
registry winner download -
retrievea lover -
reverse mobile -
richard mackenzie direct -
rocket italian -
rocket spanish -
roulette sniper -
rss ground -
secret affiliate weapon -
secrets book -
spam bully -
spyware cease -
spyware nuker -
spyware remover -
spy zooka -
starting a day care center -
tattoo fever -
team idemise -
the bad breath report -
the cb code -
thedietsolutionprogram -
the diet solution program -
the rich jerk -
the super mind evolution system -
turbulencetraining -
turbulence training -
vincedelmontefitness -
vince del monte fitness -
warp speed fat loss -
wedding speech 4u -
windo fix -
wrap candy -

Anonymous said...

zygor guides -
7day ebook -
360 fix kit -
advanced pc tweaker -
adware bot -
affiliate naire -
art of approaching -
beating adwords -
believe and manifest -
blogging in action -
body building revealed -
burthefat -
burn the fat -
carb rotation diet -
cheat your way thin -
cold sore freedom in 3 days -
conversationalhypnosis -
conversational hypnosis -
convert 2 ev -
cure for bruxism -
cure hemorrhoids -
digi cam cash -
digital media solution -
dl guard -
driver checker -
earth4energy -
earth 4 energy -
easy backup wizard -
easy member pro -
easy tv soft -
eatstopeat -
eat stop eat -
error fix -
error killer -

Anonymous said...

evidence nuker -
fap turbo -
fatburningfurnace -
fat burning furnace -
fatloss4idiots -
fat loss 4 idiots -
final uninstaller -
fitnessmodelprogram -
fitness model program -
flatten your abs -
gamers testing ground -
gov auction -
governmentregistry -
government registry -
gov records -
herbal hair solution -
homebre ware -
home job group -
homemadeenergy -
home made energy -
inteli gator -
joanas world -
joyful tomato -
kidney stone remedy -
learn digital photography now -
learn elements now -
linden method -
lose man boobs -
malware removal bot -
maternityacupressure -
maternity acupressure -
meet your sweet -
muscle gaining secrets -
muscle gain truth -

Anonymous said...

niche adsense themes -
ninety day powerseller -
pc optimizer pro -
pregnancy miracle -
pregnancy without pounds -
privacy control -
publicrecordspro -
public records pro -
quit smoking today -
reg genie -
registry easy -
registry genius -
registry smart -
registry winner -
registry winner download -
retrievea lover -
reverse mobile -
richard mackenzie direct -
rocket italian -
save my marriage today -
secrets book -
seo elite -
spyware cease -
spyware remover -
spy zooka -
stock assault -
talking to toddlers -
the action machine -
thebadbreathreport -
the bad breath report -
thedietsolutionprogram -
the diet solution program -
the rich jerk -
tonsil stones remedies -

Anonymous said...

top secret fat loss secret -
turbo cash generator -
turbulence training -
twitter online system -
uncle sams money -
underground hypnosis -
vincedelmontefitness -
vince del monte fitness -
warp speed fat loss -
water 4 gas -
wedding speech 4u -
wp goldmine -
wrap candy -
xsite pro -
zygor guides -
37 days to clean credit -
advanced defrag -
adware alert -
adware bot -
affiliate prophet -
affiliate video brander -
anti spyware -
art of approaching -
atomic blogging -
auction classified cash -
automated cash formula -
bbq book -
bloggers pay check -
blogging in action -
body building revealed -
burnthefat -
burn the fat -
carb rotation diet -
cheat your way thin -

Anonymous said...

chopper tattoo -
cleanup the profits -
cold sore freedom in 3 days -
commission blueprint -
conversationalhypnosis -
conversational hypnosis -
cure for bruxism -
declutter fast -
driver checker -
earth4energy -
earth 4 energy -
easy member pro -
easy tv soft -
eatstopeat -
eat stop eat -
fap turbo -
fatburningfurnace -
fat burning furnace -
fatloss4idiots -
final sync -
final uninstaller -
fitness model program -
fit yummy yummy -
flatten your abs -
forex ambush -
governmentregistry -
government registry -
healthy urban kitchen -
homebrew installer -
homemadeenergy -
home made energy -
instant article wizard -
jamo rama -
joyful tomato -

Anonymous said...

lose man boobs -
lower body make over -
maternityacupressure -
maternity acupressure -
maverick money makers -
meet your sweet -
muscle gaining secrets -
muscle gain truth -
natural cancer treatments -
niche review templates -
nyhms warcraft guides -
pappa pc -
pc booster -
pc optimizer pro -
pc secret formula -
pda flix -
privacy control -
publicrecordspro -
public records pro -
push button ecover -
reg defense -
reg genie -
registry easy -
registry genius -
registry smart -
registry winner -
registry winner download -
reverse mobile -
richard mackenzie direct -
rocket japanese -
rotator cuff training -
save my marriage today -
secrets book -
silent sales machine -

Anonymous said...

silver lotto -
spyware cease -
super affiliate handbook -
the 11 forgotten laws -
thebadbreathreport -
the bad breath report -
thedietsolutionprogram -
the diet solution program -
the power pause -
tmj help -
tonsil stones remedies -
top secret fat loss secret -
turbulence training -
twitter rockstar -
uncle sams money -
underground hypnosis -
vincedelmontefitness -
vince del monte fitness -
warcraft millionaire -
warcraft wealth -
warp speed fat loss -
webcomp analyst -
wedding speech 4u -
win back love -
your software website -
zox pro -
zygor guides -
500 love making tips -
acid alkaline diet -
acne no more -
advanced defrag -
adware alert -
adware bot -
affiliate elite -

Anonymous said...

anti spyware -
anti spyware bot -
article bully -
art of approaching -
auto pilot profits -
bbq book -
blogging in action -
body building revealed -
burnthefat -
burn the fat -
carb rotation diet -
chopper tattoo -
conversationalhypnosis -
conversational hypnosis -
cure for tinnitus -
debt free in three -
driver checker -
duplicate file cleaner -
earth4energy -
earth 4 energy -
easy member pro -
easy tv soft -
eatstopeat -
eat stop eat -
end your tinnitus -
fap winner -
fat burning furnace -
fatloss4idiots -
fat loss 4 idiots -
final sync -
final uninstaller -
firewall gold -
fitness model program -
fit yummy yummy -

Anonymous said...

[url=http://monaviejuice.com.au]Monavie Juice Australia[/url]
[url=http://100percentwinners.akb007.com]100% Winning Sports Betting Software[/url]
[url=http://mrusa99.com]Bodybuilding Blog[/url]
[url=http://tinyurl.com/634hl98]Bodybuilding and Fitness Blog[/url]
[url=http://chicken.akb007.com]Build a Chicken Coop[/url]
[url=http://chicken-coop-plans.akb007.com]Build a Chicken Coop Plans[/url]
[url=http://local-mobile-monopoly.mrusa99.com]Cell Phone Marketing[/url]
[url=http://chicken-coop.akb007.com]Chicken Coop[/url]
[url=http://chicken-coop-plans.mrusa99.com]Chicken Coop Plans[/url]
[url=http://akb007.com/invisalign]Clear Braces Sydney [/url]
[url=http://commission-crusher.akb007.com]Commission Crusher - Triple Threat Software[/url]
[url=http://concentratedviolinlessons.akb007.com]Concentrated Violin Lessons[/url]
[url=http://www.sydneycitydental.rediweb.com.au/wpfiles1]Cosmetic Dentist Sydney[/url]
[url=http://dogtraining.akb007.com]DIY Dog Training[/url]
[url=http://dog-training.akb007.com]Dog Training[/url]
[url=http://dog-training-made-easy.akb007.com]Dog Training Made Easy[/url]
[url=http://tinyurl.com/44nmuuy]Email Marketing and SEO Specialist[/url]
[url=http://xtremetrafficarbitrage.akb007.com]Extreme Traffic Arbitrage[/url]
[url=http://forex-fap.akb007.com]Forex FAP Turbo Robot[/url]
[url=http://tinyurl.com/453e9d2]Gourmet Food[/url]
[url=http://lookwhosblogging.com]Gourmet Food Blog[/url]
[url=http://guitarscalemastery.akb007.com]Guitar Scale Mastery[/url]
[url=http://how-to-win-the-lottery.mrusa99.com]How to Win the Lottery[/url]
[url=http://invisalign.akb007.com]Invisalign[/url]
[url=http://www.clearbracessydney.com]Invisalign Sydney[/url]
[url=http://akb007.com/invisalign]Invisalign Teen[/url]
[url=http://invisalign-sydney.akb007.com]Invisalign Teen Sydney[/url]
[url=http://jamorama.mrusa99.com]Jamorama[/url]
[url=http://jamorama.akb007.com]Jamorama - Learn to Play Guitar Online[/url]
[url=http://silver-lotto.akb007.com]Ken Silver Lotto[/url]
[url=http://silver-lotto.mrusa99.com]Ken Silver Lotto System[/url]
[url=http://jamorama-reviews.akb007.com]Learn to Play Guitar Online[/url]
[url=http://local-mobile-monopoly.akb007.com]Local Mobile Monopoly[/url]
[url=http://lottoblackbook.akb007.com]Lotto Black Book[/url]
[url=http://makingup.akb007.com]Magic of Making Up[/url]
[url=http://magniwork.akb007.com]Magniwork[/url]
[url=http://mowg.mrusa99.com]MOWG[/url]
[url=http://mowg.akb007.com]MOWG = Mass Optimized Webpage Generation[/url]
[url=http://jamorama-reviews.mrusa99.com]Play Guitar Online[/url]
[url=http://pregnancy-miracle.akb007.com]Pregnancy Miracle[/url]
[url=http://rocketpiano.akb007.com]Rocket Piano[/url]
[url=http://satellitedirect.akb007.com]Satellite Direct - Watch TV Online for Free[/url]
[url=http://akb007.com]SEO Specialist[/url]
[url=http://seopressor.akb007.com]SEOPressor Premium Wordpress Plugin [/url]
[url=http://ken-silver-lotto.akb007.com]Silver Lotto $10 Discount Offer[/url]
[url=http://ken-silver-lotto.mrusa.com]Silver Lotto[/url]
[url=http://silverlotto.akb007.com]Silver Lotto System[/url]
[url=http://singorama.akb007.com]Singorama - Learn to Sing Like a Pro![/url]
[url=http://teds-woodworking.akb007.com]Ted's Woodworking[/url]
[url=http://100percentwinners.akb007.com]Top Arbitrage Betting[/url]
[url=http://truth-about-abs.akb007.com]Truth About Abs[/url]
[url=http://how-to-win-the-lottery.akb007.com]Win the Lottery[/url]
[url=http://how-to-win-the-lottery.mrusa99.com]Win the Lottery 9 Out of 10 Times[/url] [url=http://www.lookwhosblogging.com][img]http://www.lookwhosblogging.com/images/smile.gif[/img][/url]

Anonymous said...

[url=http://www.thomassaleonline.co.uk]thomas sabo sale[/url]
[url=http://www.thomassaleonline.co.uk]thomas sabo outlet[/url]
will even assistance, seek guidance and suggestions from seasoned buyer and seller who've recently completed transactions on-line, their knowledgeable will give credibility for your future transactions and purchases. For newly built buying web page start off checking their policy agreement each for sellers and buyers, also examine their return and exchange guidelines for damaged goods, handling fees and proper description of goods that really should be factual and genuine.

Obtaining fashion clothing on the web has emerged as the most up-to-date trend of your season. Having a substantial collection of distinct well known brands and fashionable selections, a lot more and more fashion savvy women are contemplating on line buying as the ultimate way of getting probably the most worthwhile experience ever. Sitting anyplace, anytime, you'll be able to now enjoy unlimited shopping facilities in the most hassle free manner. A major trend has been witnessed in the direction of kurti on-line buying, with designer and tops becoming an integral component of girls clothing style. These kurtis not just appear immensely fashionable and gorgeous on all occasions, but may also be exceptionally comfortable to wear. Over the years, tops and kurtis have emerged to be on the list of most important elements of a woman's wardrobe, together with the trend continuing to rule the future.
[url=http://www.clarisonicmiaoutletsale.co.uk]clarisonic mia brush[/url]
[url=http://www.clarisonicmiaoutletsale.co.uk]clarisonic plus[/url]


Why purchase casual kurtis for females from retail shops and high-priced shopping malls whenever you can obtain these at terrific discount costs on the net? And not only lucrative price tag offs and promo deals that make on-line shopping more fascinating; utmost expediency and comfort add to affordability to make sure by far the most worthwhile knowledge ever. Buying kurtis and fashionable tops for girls have by no means been so quick before! Just sitting at your property, office or wherever, you'll be able to get unlimited womens clothing, and that too at any point of time. Online shops are open 24x7, and also you can even spot the order for style clothing throughout midnight. And this really is what you miss in buying!
[url=http://www.monclerjacketssales2012.com]www.monclerjacketssales2012.com[/url]
[url=http://www.monclerjacketssales2012.com]cheap moncler[/url]

Anonymous said...

Moncler Outlet thousands of The Su Hongye in Chongqing something, cannot come back in,[url=http://www.giubbotti-moncleroutlet.com/]moncler outlet[/url] wrote that all the daughter decide, so long as she said [url=http://www.giubbotti-moncleroutlet.com/]moncler outlet[/url] the study. the foreign flavor of the new people are very against [url=http://www.giubbotti-moncleroutlet.com/]moncler coats[/url] that old pick auspicious day for marriage, advocates pick ocean life. that the most unfavorable marriage Gregorian calendar in May, the Gregorian calendar in June is best marriage, but they're already engaged in June, the so extended to early September wedding. It is stated an excessive amount of attention to date,Monday 23 is a great day for marriage, especially on Wednesday; 4,561 days like a bad day, the result is that they pick on Wednesday smiles: should have been that guy to leave Yuen Long Cao tricks. Mei smiles: short, you hate the European students, pattern names up. Chosen to get married that Moncler Outlet Wednesday, the weather is much like summer, hot interest. The way I needed, Jiao days Fortunately, today I did not do groom. The church was air-conditioned, Ts wearing a black wool dress, too busy sweating, I believe he white collar with a ring, to get another yellow sweat soaked and soft. I afraid the entire of his plump body In Khan, the way the candle into a pool of oil. Miss Su can also be tight ugly. fall into line at the wedding, the bride and groom smiling face, no expression of Ku Buchu, all unlike the dry wedding, but rather no, this is not on the scaffold, is really a, is, like Moncler Boots a public place of pickpockets signs with punishing those hardened criminals hard. I occur to believe that I own marriage ceremony, under those a large number of Kui Kui like to become inevitable cracked pickpockets. That helped me realize the type of joyful, smiling faces of happy wedding pictures were never taken to. find! Great find! I'm interested in would be to see how you prefer her within 24 hours. avoided her to not see, just say several words with Miss Tang - chien hop heavy heart that, like truck unloading the parcel the following smash gravitropic only strange Xinmei will not hear - was a bridesmaid the day, saw me and Moncler Scarf inquired about not to fight, said the ceremony complete line, we sprinkle colored paper Fou new body, when, and only I will not have hands, afraid which i go ahead and take opportunity to throw hand grenades, nitrate sulfuric acid spill. She inquired about later on plans, I informed her to go Sanlv University. I believe she might not wish to hear your name, and so i did not mention a thing you.

more information you can go to http://www.giubbotti-moncleroutlet.com

[url=http://www.giubbotti-moncleroutlet.com/]moncler jacken[/url]
[url=http://www.giubbotti-moncleroutlet.com/]moncler outlet zone[/url]
[url=http://www.giubbotti-moncleroutlet.com/]montclear[/url]
[url=http://www.giubbotti-moncleroutlet.com/]monclers[/url]
[url=http://www.giubbotti-moncleroutlet.com/]doudoune moncler[/url]
[url=http://www.giubbotti-moncleroutlet.com/]moncler darlan[/url]
[url=http://www.giubbotti-moncleroutlet.com/]moncler kids[/url]
[url=http://www.giubbotti-moncleroutlet.com/]moncler branson[/url]
[url=http://www.giubbotti-moncleroutlet.com/]moncler gamme bleu[/url]
[url=http://www.giubbotti-moncleroutlet.com/]buy moncler[/url]
[url=http://www.giubbotti-moncleroutlet.com/]moncler coats[/url]
[url=http://www.giubbotti-moncleroutlet.com/]moncler women[/url]

Anonymous said...

top [url=http://www.001casino.com/]001[/url] hinder the latest [url=http://www.realcazinoz.com/]free casino[/url] unshackled no set aside perk at the best [url=http://www.baywatchcasino.com/]baywatchcasino
[/url].