Tuesday, December 11, 2007

Fed gives bears an opening

25 basis points? Are you kidding me? That's exceptional? That's alert? That's flexible? The Fed just does not get it. By not being more aggressive in their cuts, they'll be forced to cut rates much lower than they ever envisioned or wanted. And the bears have until the end of January to restart their rumors.

Lehman Brothers at 62 is a perfect example, down 3.70 on the day. They come out with earnings on Thursday, and there will be whispers about their exposure to the junk they sold to Florida's Local Government Investment Pool. And the stock will go down.

You can thank our Fed.

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