Cheap Credit

Last night in bed, on my blackberry, were BCA headlines reading -

A bold start to a new Fed easing cycle.

BOLD - in my earlier predictions meant there would not be a rate cut, so I went to sleep fearing that a 50bps cut had transpired - and goodness gracious there it was on TV and papers in the morning.

What's HE thinking? Gimme a break! I was betting on a 25bps cut as I was not expecting him to deviate from his antecedent (dont think he's got the guts to put this job on the line and say "America it's time to clean up the mess!") and a small cut would have been sufficient to prove to the investment community that somethin was done.

What's he gonna do next when more troubles spring up? Cut further? Keep cutting until they have another credit boon? What's it sayin bout the Dollar - hitting 15-yr low!? How bout inflation?? It's sad that they KNOW what caused all this in the first place and no MotherF***** can take a stance and say let's watch and see and let all these buggers die so that only the fittest survive! Thank God we had the Asian Financial Crisis!!

Oh and what's Alan Greenspan sayin these days??? Not in the Hot seat anymore we see -

Fed should be careful in not to cut rates too aggressively because the risk of an "inflationary resurgance" was greater now than when he was Chairman... ... turmoil in housing and credit markets did not look like it would produce a broader economic downturn... ... Still, Greenspan warned that it would not be clear for awhile whether the present downturn and turmoil in the credit markets would hurt the broader economy or not... ... He said the biggest long-term threat to the US economy was not the current housing correction but the likelihood that inflationary pressures would resume over time - SCMP

How IRresponsible! Good luck America!!