CHESSNOID

It bothers me that the Federal Reserve has knee jerk responses to the stock market numbers.  Nothing has really changed from yesterday to today except some negative news that has come out.  These were things we were already aware of, but Bernanke feels the need to look busy and to look like he is doing something. Yahoo:

Many investors believe the central bank will cut rates by at least another half-percentage point following the end of a two-day meeting on Oct. 29.

In fact, the fed funds futures on the Chicago Board of Trade are now pricing in a 26% chance that the Fed will cut rates by three-quarters of a percentage point to 0.75% by that meeting.

Bernanke will probably do the rate cuts and he will do it before expected. That might give the markets a temporary boost up, but won’t change the overall direction. They have done 8 or 9 rate cuts now in less than a year and a half and they have not worked. We are nearing 0% so this tool to help the economy has run its course.

His previous decisions and actions are what have contributed to this recession and making it more severe than it had to be. I do hope the 3 financial stooges Bush, Bernanke, and Paulson leave office soon. I really am tired of all the Fraud Bailouts of their buddies on Wall Street.