The Federal Reserve today shot their bolt and for their efforts"made it worse. Imagine you're on an ocean liner and in the middle of the night you feel a crash. You go looking to investigate and find the Captain wearing a life jacket, but he assures you everything fine just go back to bed! You look out the porthole of your stateroom and see the Captain lowering a lifeboat. I'm sure these guys have heard this before" too soon and too quick to be impressive. The Fed put out a statement saying, "The fundamentals of the economy are strong," then five seconds later scream, Oh my god! It's the end of the world! While passing out a half a point interest rate cut and cyanide tablets. What's the matter little boy? Not feeling good. How bout a nice big piece of chocolate cake? That'll fix you right up!
Investors were cheering as the market shot up over three hundred points. Then investors said, "Wait a minute! He was wearing a life jacket and was carrying his coat." Here's where the Wall Street wizardry comes in, "Wait a minute, I bet he's lying!"
One the few points I have to agree on with the financial types, its bad juju to interfere in markets. Case in point, this is not the Feds job. And this is dumb, you know how dumb? This is Donald Trump dumb. Making it cheaper to borrow money isn't going to help with your supply problem. But now a third of all remaining interest rate leverage is gone.
That fundamentals spiel, you suppose he plagiarized that from 1929?
"There is no economic failure so terrible in its import as that of a country possessing a surplus of every necessity of life in which numbers willing and anxious to work, are deprived of dire necessities. It simply cannot be if our moral and economic system is to survive."
" Herbert Hoover