Thursday, November 01, 2007

But what have you done for us LATELY???

Dow drops more than 360 on fears interest rate cuts will end

So let me get this straight. One day after finding out that current growth is a robust 3.9% AND getting a second rate cut, the sky is now falling because the FOMC hinted that their might not be any MORE rate cuts? It's like dealing with a spoiled child!

"Wall Street is in love with the idea of a rate cut, and realized that the Fed said inflation is still a concern — that lowered the chances of a cut in December," said Ryan Detrick, a senior technical strategist with Schaeffer's Investment Research. "We're now feeling the pain now that investors have slept on it, and figured out what they said."


1 comment:

Anonymous said...

What sort of integrity (if any) do you guys see in the gov'ts inflation, jobs, and GDP numbers? John Williams @ ShadowStats has been tracking the "changes in methodologies" the gov't uses to give us our monthly and quarterly doses of economic fiction. If it sounds like I am jaded, I am. CPI and the GDP deflator look horribly understated for several years. And the jobs numbers make even less sense thanks to the birth/death model.

What do the trained economists in you think?

P.S. I had John Coleman as my Macro teacher @ Duke. I thought he was great.