If this economy was as strong as the perma bulls say it is, then it should have taken off today with a .25 cut.
Instead, it predictably held a pity party and fell 300 points.
I do expect the rate cuts to keep on coming though.. as the bad news / write downs continue to come in… and of coarse housing continues to fall as well.
Looks to me like the fed will walk a tight rope balancing act right to the edge of the plank, where it will finally have no more power to stimulate the economy. IMHO this will just prolong the volatility, and misery, while not addressing the issue at hand at all, which is that America faces too much debt, and relies heavily on the continued use of it to appear strong.
I really wonder if a quicker, more severe recession would force this country to get back on track, and in the long run, be better off, making us stronger and wiser. The easy way out doesn’t seem much better to me.
