Tuesday, January 22, 2008
75 BPS To Start The Day Off Right
Try FED Tonic 75! Guaranteed (although not with legal enforceability) to get your trading day started with a bounce!
In case of emergency, we deliver Next Day. Just call 1-800-FED-OUCH, and you can be sipping FED Tonic 75 with breakfast the next morning.
PS: So far, Bovespa futures are up. That's very good. My guess is that we can use Bovespa as a proxy for countries like Turkey.
CF - no real arguments here. We have to go until we hit a feasible set of valuations. The best the Fed can do is slow the slope.
I don’t look forward to today. Plunging markets, trading brakes, B roll footage of traders shouting on the floor of the Stock Exchange, top-of-the-hour radio news with the newsreaders using their Important Concern inflection because God forbid the story should speak for itself. Then tomorrow there will be an editorial cartoon that has someone selling apples. Panic. Stupid, useless snowballing hysteria. I’m not worried about the economy at this point; I’m worried what people will do save it. Rebates! Oh, that’s grand. Nothing restores fundamental consumer confidence like shoving money in their hands and yelling SPEND IT! SPEND IT NOW! ON ANYTHING! THROW PILLOWS! STEEPLY DISCOUNTED HD-DVD PLAYERS! BLOWN-GLASS GEEGAWS! TRAILER HITCHES! BUCKETS OF PICKLES! IT DOESN’T MATTER! Or you could tax everyone more so they feel poorer, so they spend less, then wonder why retail sales are down, commercial property is soft, and business tax receipts have cratered.
(Lileks is a journalist and blogger from Minneapolis with a wicked sense of humor.)
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