Wednesday, March 19, 2008

The rumbling in the market's tummy

Today was a nasty day on the Street, with all the major indices down in excess of 2%. Apparently, the Fed was taking a little siesta, as it offered up no rate cuts, no special deals at the discount window, squatarama. Admittedly the $200 billion dollar bump from changing statutory reserving requirements for Fannie and Freddie seemed to get us through the morning OK but heh, a market gets hungry by lunch time and really needs a little something to get through the day. But no nothing. Bernanke didn't even order up any Chinese take-out. What do you expect a market to do, under such conditions?

2 comments:

Anonymous said...

The greedy bastards at the "leveraged" investment banks got us into this crap and should suffer. Why the hell should our tax dollars do anything to "save the economy"? The falling value of the dollar and the relative inflation rate for the average joe is already doing damage. It would be better to have the damn house of cards collapse quickly and completely and have everyone suffer a lot for a short time rather than watch one dishonest CEO after another slowly burn out. What happens when our poor returns on our government's debt don't attract any foreign capital and we cannot float all the debt we're accumulating? I feel sorry for the Grouse's children, they're going to bear the brunt of these bad decisions. I believe stagflation is in the near future and all the enhancement cream in the world cannot fix it.

ChewYourGrouse said...

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