Click on the post for a review of world markets before the stock market opening this morning.
This morning would be a good time for the Federal Reserve to sharply lower Fed Funds Rate by .50. On the day of the stock crash in 1986 and also after the September 11, 2001, the Fed took action. The time for action is NOW. Mr. Bernanke wrote this Phd. thesis on this and it is time for him to follow or ...eat...his own words.
Last night, presidential candidate Hillary Clinton called for a moratorium on housing foreclosures implemented immediately. The Observer agrees. An announcement this morning would be good. There is no way the bipartisan efforts so far will respond fast enough to meet the challenge of the variable mortgages that are set to rachet higher now. The moratorium would allow time for the mortgage industry and government officials to thoughtfully respond rather than respond in a panic.
After and during the Crash in 1929, government officials filled the airways stating they had "confidence" in the robustness of the economy. Just mouthing the words will not do in the modern internet age. Folks are looking...and looking closely for action and the prior platitudes will not be sufficient.
Stay tuned.
Tuesday, January 22, 2008
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